2001

F&C [ 2006 - 2005 - 2004 - 2003 - 2002 - 2001 - 2000 - 1999 ]

F&C is a new leading force in European asset management. Following the acquisition by Eureko of Foreign & Colonial Management Ltd., in the United Kingdom, in December 2000, and which changed its name to F&C Group (Holdings) Ltd (F&C), Eureko stated its goal of consolidating all Group asset management activities into a single investment management platform. With the closing of this acquisition in March 2001 and its re-branding as F&C, the Group moved to integrate its Dutch, Irish and Portuguese asset management activities with those of the London-based company.

Strategy

F&C’s mission is to build a leading pan-European, autonomous asset management company.
F&C will be a key vehicle by which Eureko will extract synergies across the Group and exploit its distribution platforms as well as maintaining organic growth.
F&C will also be the money manager to Eureko B.V.

Main developments in 2001

• In 2001, the goals of establishing and operating as a single fully integrated company were achieved
• Operating as a fully integrated company will allow management to adopt and ensure high and consistent standards whilst extracting maximum synergies. It required establishing:
  
  • One legal holding vehicle to house all asset management entities
  • One operating company management board, one Chairman, one CEO
  • One house-investment policy and a single senior professional to oversee it
  • One head of equities, fixed income
  • One remuneration philosophy and policy
  • One set of corporate standards for finance, risk, audit, compliance, fund administration and performance measurement
  • Functional group heads to ensure implementation of these standards
  • One marketing strategy (branding, corporate image, PR, and pensions consultants)

* Includes Intertrust (6 months)
** Includes Dutch, Portuguese and Irish Asset Management activities.

Financial Highlights

• Assets under management fell by 6% from EUR 118.7 billion* to EUR 112.3 billion, reflecting reduced market valuations and a one-time repatriation of select German assets, which accompanied the change in shareholding of Foreign & Colonial. The company continued to win new business during 2001, with the launch of retail funds in Germany, Portugal and the UK, which collectively raised EUR 1.7 billion of new funds. The merger inevitably delayed institutional asset gathering. Nevertheless, winning EUR 2.9 billion of new institutional funds was achieved during the year. Revenues, in contrast with total volume, were stable – quite remarkable given the environment, and a testimony to the balance of the business base of the company.

• Operating results decreased by 5%. This decrease was partially a legacy of the full-year effect of cost increases incurred in 2000. The integration of the UK, Dutch, Irish and Portuguese asset management activities during the course of the year also involved a number of non-recurring expense items for re-branding, repositioning of personnel and portfolios, severance and systems alignment. A provision was established during the year to support the costs associated with the centralisation of back-office processing from Amsterdam to London.