F&C Asset Management suffered net outflows of £4.89 billion in the last three months of 2012.
The largest part of that sum came from the £2.4bn withdrawn by Friends Life as it takes management of fixed income assets in-house. Friends Life is expected to take out a further £6.2bn of assets in by the middle of this year.
In the quarter, the third-party institutional business saw net outflows of £956 million due to the loss of cash management and Government bond mandates.
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The wholesale business saw net outflows of £340m but there was £30m of net inflows at the consumers business, while retail and investment trusts also reported positive inflows.
F&C said assets under management were at £95.2bn at the end of the year, down from £96.8bn in the previous quarter.