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Asset Management, created through a merger last year of the F&C and Isis fund managers, is to cut its and suffer a large drop in profit margins as it attempts to counter a recent exodus of funds under management.

The shares crashed 32p to 175p on the news.

But chief executive Alain Grisay said: ‘Shareholders with 70% of the shares fully supported our plans at the board and realise that over our three-year plan, shareholder value improvement should outstrip the dividend they will have forgone.’

Insurer Friends Provident, which today revealed an 18% rise in fourth-quarter new business, owns 51% of the shares while Dutch insurer Eureko holds 20%, meaning they effectively approved the strategy.

Grisay said: ‘We want to take an aggressive stab at building shareholder value. Our plan is to invest in three areas.

‘First, we want to produce new high-margin products like hedge funds, global tactical allocation and credit . This will require investment in infrastructure, particularly risk management tools.

‘Third, we need to improve our distribution on the Continent and to target specific markets like Switzerland.’

F&C also came clean about its exposure to the Dutch pensions market. Structural changes there mean entire portfolios of shares and bonds are no longer going to a single but are split between specialists in asset classes and geographies.

F&C has lost or is on notice that it will lose almost 7bn worth of such funds. It also has another 7.5bn of Dutch institutional money, which Grisay is certain will not all disappear.

This entry was posted on Wednesday, February 28th, 2007 at 8:08 pm and is filed under stocks. You can subscribe via RSS 2.0 feed to this post's comments. Responses are currently closed, but you can trackback from your own site.

Asset Management, created through a merger last year of the F&C and Isis fund managers, is to cut its and suffer a large drop in profit margins as it attempts to counter a recent exodus of funds under management.

The shares crashed 32p to 175p on the news.

But chief executive Alain Grisay said: ‘Shareholders with 70% of the shares fully supported our plans at the board and realise that over our three-year plan, shareholder value improvement should outstrip the dividend they will have forgone.’

Insurer Friends Provident, which today revealed an 18% rise in fourth-quarter new business, owns 51% of the shares while Dutch insurer Eureko holds 20%, meaning they effectively approved the strategy.

Grisay said: ‘We want to take an aggressive stab at building shareholder value. Our plan is to invest in three areas.

‘First, we want to produce new high-margin products like hedge funds, global tactical allocation and credit . This will require investment in infrastructure, particularly risk management tools.

‘Third, we need to improve our distribution on the Continent and to target specific markets like Switzerland.’

F&C also came clean about its exposure to the Dutch pensions market. Structural changes there mean entire portfolios of shares and bonds are no longer going to a single but are split between specialists in asset classes and geographies.

F&C has lost or is on notice that it will lose almost 7bn worth of such funds. It also has another 7.5bn of Dutch institutional money, which Grisay is certain will not all disappear.

This entry was posted on Wednesday, February 7th, 2007 at 9:32 pm and is filed under . You can subscribe via RSS 2.0 feed to this post's comments. Responses are currently closed, but you can trackback from your own site.

Asset Management, created through a merger last year of the F&C and Isis fund managers, is to cut its and suffer a large drop in profit margins as it attempts to counter a recent exodus of funds under management.

The shares crashed 32p to 175p on the news.

But chief executive Alain Grisay said: ‘Shareholders with 70% of the shares fully supported our plans at the board and realise that over our three-year plan, shareholder value improvement should outstrip the dividend they will have forgone.’

Insurer Friends Provident, which today revealed an 18% rise in fourth-quarter new business, owns 51% of the shares while Dutch insurer Eureko holds 20%, meaning they effectively approved the strategy.

Grisay said: ‘We want to take an aggressive stab at building shareholder value. Our plan is to invest in three areas.

‘First, we want to produce new high-margin products like hedge funds, global tactical allocation and credit . This will require investment in infrastructure, particularly risk management tools.

‘Third, we need to improve our distribution on the Continent and to target specific markets like Switzerland.’

F&C also came clean about its exposure to the Dutch pensions market. Structural changes there mean entire portfolios of shares and bonds are no longer going to a single but are split between specialists in asset classes and geographies.

F&C has lost or is on notice that it will lose almost 7bn worth of such funds. It also has another 7.5bn of Dutch institutional money, which Grisay is certain will not all disappear.

This entry was posted on Wednesday, February 7th, 2007 at 9:10 am and is filed under . You can subscribe via RSS 2.0 feed to this post's comments. Responses are currently closed, but you can trackback from your own site.

Asset Management, created through a merger last year of the F&C and Isis fund managers, is to cut its and suffer a large drop in profit margins as it attempts to counter a recent exodus of funds under management.

The shares crashed 32p to 175p on the news.

But chief executive Alain Grisay said: ‘Shareholders with 70% of the shares fully supported our plans at the board and realise that over our three-year plan, shareholder value improvement should outstrip the dividend they will have forgone.’

Insurer Friends Provident, which today revealed an 18% rise in fourth-quarter new business, owns 51% of the shares while Dutch insurer Eureko holds 20%, meaning they effectively approved the strategy.

Grisay said: ‘We want to take an aggressive stab at building shareholder value. Our plan is to invest in three areas.

‘First, we want to produce new high-margin products like hedge funds, global tactical allocation and credit . This will require investment in infrastructure, particularly risk management tools.

‘Third, we need to improve our distribution on the Continent and to target specific markets like Switzerland.’

F&C also came clean about its exposure to the Dutch pensions market. Structural changes there mean entire portfolios of shares and bonds are no longer going to a single but are split between specialists in asset classes and geographies.

F&C has lost or is on notice that it will lose almost 7bn worth of such funds. It also has another 7.5bn of Dutch institutional money, which Grisay is certain will not all disappear.

This entry was posted on Wednesday, January 31st, 2007 at 9:31 pm and is filed under stocks. You can subscribe via RSS 2.0 feed to this post's comments. Responses are currently closed, but you can trackback from your own site.