LONDON (ShareCast) - Continued weakness in equity markets despite the recent rally, unhelpful currency movements and low interest rates all helped to push F&C Asset Management into losses at the interim stage.
The firm reported a loss
after tax of £8.7m in the six months to June 30, compared with a pre-tax profit of £3.3m over the same period the previous year. Net revenue totalled £105.1m, compared with £117.9m previously, while assets under management were £88.3bn at the end of the period, compared with £96.5bn at the end of the same period the previous year.
'Despite the recent rally, equity markets traded significantly lower during the first half of 2009 than the prior year,' said chief executive Alain Grisay.
'This factor, combined with adverse FX movements and severely reduced income earned on our gross cash balances as a result of record low interest rates, has had a detrimental impact on short term financial results.'
He said the firm's outlook was much brighter after its de-merger from the insurer Friends Provident, completed in July, ended a period of uncertainty for the firm.
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