FCAM pushes ahead with second phase of strategic review

Fund manager F and C Asset Management (FCAM) has revealed the details of the second phase of its strategic review, which is focusing on the growth for the Wholesale, Consumer (Retail Funds and Investment Trusts) and Property businesses.

The firm said Phase Two of its Strategic Review involves pursuing profitable growth for the Wholesale and Consumer businesses, "responding to customer needs in the advisory and self-directed channels and building on F&C's strengths in multi-manager products, direct marketing and its consumer brand awareness".

The Wholesale division will look to give customers a wider range of products and will also be used to "incubate" products with the potential for institutional distribution.

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FCAM will also enhance and expand its direct marketing capability, currently supporting its investment trusts, to support a wider product range. In Property, the group is looking to improve the distribution of core products through all distribution channels and develop a pan-European product.

Meanwhile, FCAM says that its Strategic Review Phase One is one track to meet the cost reduction targets first announced back in October 2011 - operating expenses are expected to be cut by £33.2m by 2013.

"In October we set out our corporate objectives of generating above average shareholder returns with below average volatility, achieving scale in areas of strategic focus, and focusing on incremental profitability. The October review focused on implementing these objectives in the Institutional business and a similar approach has been taken for the Consumer business with the strategies we are announcing today," said Executive Chairman Edward Bramson.

"We see significant strengths in our Consumer business and believe we are uniquely positioned in the post-Retail Distribution Review regime. We believe the new strategies outlined today will create strong financial returns for shareholders and our new compensation structure directly aligns management's interests to this result," he said.

Shares were up 0.29% at 66.34p in early trading on Tuesday.

BC