Loss for F&C as assets fall
F&C ASSET Management said yesterday it swung to a pre-tax loss of £11.3m in the first half of the year, after client withdrawals from its funds ballooned to £3.3bn in the second quarter.
The group held its interim dividend at 2p yesterday after reporting the loss, which compared to a £3.4m gain in the same period in 2008.
Chief executive Alain Grisay conceded the withdrawals were “quite big”. The firm added lower equity markets, currency movements and reduced income from cash balances due to high interest rates, also hit its results.
F&C said its total assets under management were now £88.3bn, down 10.5 per cent over the six months to June.
However, the group said the medium-term trading outlook had “improved materially”.
Singer Capital Markets analyst Sarah Ing said the initial disappointment over the first-half results was counteracted by the positive outlook in comments to the market later on.
Shares of the firm went on a rollercoaster yesterday as sentiment shifted, falling to a six per cent loss in earlier trading before rising to a 3.4 per cent gain before closing broadly flat at 72.5p.