F&C Asset Management Plc, the investment firm controlled by hedge-fund manager Edward Bramson, dropped in London trading after Achmea BV decided to withdraw 10.3 billion pounds ($16 billion) of assets.
The Dutch insurer will pull the funds, which yield 11 basis points in revenue for F&C, from October, the London-based money manager said today in a statement. The stock slid 2.5 percent to 98.3 pence at 9:24 a.m. in London trading, valuing the firm at about 552 million pounds.
“Our assets-under-management assumptions will have to change given this morning’s news from Achmea,” Owen Jones, a Liverpool, England-based analyst at Shore Capital Group Ltd., wrote in a note to clients as he downgraded the stock to sell from hold.
F&C is attempting to stem withdrawals from insurance clients after Bramson took control of the firm in 2011 and cut costs. The Achmea outflows represent about 10 percent of F&C’s funds under management. U.K. insurer Resolution Ltd. pulled 5.3 billion pounds last year and may withdraw a further 6.2 billion pounds, it said in March.
F&C’s assets under management rose 3.7 percent in the first three months of the year to 98.8 billion pounds, boosted by rising markets and favorable foreign-exchange movements. Net inflows of 139 million pounds into retail funds in the quarter were outweighed by 178 million pounds of outflows from institutional clients, the firm said in the statement today.
Bramson, an activist investor, is F&C’s chairman and largest shareholder through his hedge fund Sherborne Investors LLC. The stock has almost doubled since he began buying his stake in 2010.
Earlier this year, Bramson announced he increased his stake in 3i Group Plc, Britain’s oldest private-equity firm, to 4.2 percent, making Sherborne its third-biggest shareholder.