F&C Asset Management Plc (FCAM), which oversees the oldest U.K. investment fund, said it posted a first-half loss because of a fall in financial markets and foreign-exchange losses.
The net loss was 9.8 million pounds ($17 million) for the six months to June 30 compared with a profit of 3 million pounds for the same period a year earlier, the London-based company said in a statement today. Assets under management fell 10 percent to 88.3 billion pounds in the period as investors pulled funds in the wake of the global financial crisis.
“The operating environment remains challenging,” Chief Executive Officer Alain Grisay said in the statement. “We remain cautious in our outlook given the speed and extent to which markets have risen.”
F&C, which traces it roots to 1868, is trying to add clients as insurer Friends Provident Plc distributes its 52 percent stake to shareholders. Friends Provident has agreed to invest money with F&C until 2014 after which it will be free to invest it elsewhere. Friends Provident’s management contracts account for about 14 percent of F&C’s annual revenue.
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