F&C left reeling by fresh cash outflows

SHAREHOLDERS in F&C Asset Management are watching for a move by activist investor Edward Bramson after the company released a nightmarish set of interim results.

Shares in F&C tumbled six per cent to 58p yesterday after the fund manager cut its dividend in half to 1p in an effort to eliminate its net debt by 2014. F&C suffered £2.5bn net outflows of client cash in the six months to 30 June. Although underlying pre-tax profit doubled to £12.4m, as customers bought more high-margin products, the firm’s loss after tax widened from £8.7m to £19.5m.

F&C is expected to meet in the next few weeks with Bramson, who has built up an 11 per cent stake through Sherborne, his turnaround vehicle.