F&C AuM increases by 13.5% in Q3

London_night_410F&C Asset Management saw its assets under management (AuM) increase by £12.9bn to £108.2bn during the third quarter of year, on the back of the acquisition of Thames River Capital and positive market movements.

The increase in AuM was of 13.5% and the purchase of Thames River accounted for £4.2bn. Over the quarter, the firm saw new business flows of £0.6bn, excluding acquired assets.

In the interim statement announcing the Q3 results, F&C said it had a pipeline of new business awaiting funding of £1.6bn at the end of the quarter.

Alain Grisay, chief executive of F&C, said: “The group’s assets under management benefited from a combination of positive market and currency movements, net inflows and the acquisition of Thames River during the third quarter. The completion of the Thames River acquisition adds new investment capabilities and enhanced distribution in our retail/wholesale business. This is a key component of our strategy of growing new revenues which also provides a catalyst for the group to develop a more flexible cost base because of the additional scale it brings to our mutual funds business.”

The firm’s significant exposure to European clients and the strengthening of the Euro versus Sterling during the quarter bumped up the AuM by around £3.3bn.  Positive market movements in both equities and fixed income further increased assets by circa £4.8bn.

During the third quarter of the year, F&C witness net inflows of £598m, which included £124m inflow from Thames River. Gross  inflows came in at £1.2bn for institutional mandates and sales of £371 million into open-ended funds.

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