F&C Asset Management today warned it faced “significant headwinds” after clients pulled out billions from its funds last year.
The company is currently in the process of being sold to the Bank of Montreal for £708 million but saw its assets under management fall from £95.2 billion at the end of 2012 to £82.1 billion a year later.
Boss Richard Wilson said: “The withdrawal of assets from strategic partners will continue to impact upon revenues, while the development of our consumer and institutional business will take time and investment.”
Despite the fall in assets, F&C made profits of £10.2 million after reducing its debt 22% to £76 million and cutting costs.
F&C shareholders are due to vote on the takeover bid later this month. Activist investor Elliot has been building up a stake in the company, increasing expectations that Bank of Montreal may have to up its offer.
