F&C inflows up but costs rise

F&C Asset Management said it attracted a net £800m of new fund inflows in the first half of 2011 but posted weaker than expected underlying profits yesterday.

Assets under management rose to £108bn, up from £105.8bn at the end of December while net revenues increased 28 per cent to £137m in the six months to the end of June.

But some analysts said its expense base since the acquisition of Thames River Capital was growing fast, and underlying pre-tax profit of £22.6m was ten to 15 per cent short of consensus expectations.