F&C Asset Management suffered a dip in its assets under management (AUM) in the third quarter but chairman Edward Bramson said the signs were still encouraging.

F & C reported AUM of £96.8 billion, a figure down from £98.2bn at the end of June.

But that was due to previously announced withdrawals by strategic partner Friends Life, at fees of only 0.08%.

The group explained that this was offset by strong investment performance, which added 3.9% or £2.4bn of funds.

Mr Bramson, the US-based investor who unseated the group's leaders in a shareholder coup last year, said: "Inflows and performance in our third party institutional busi- ness continue to be encouraging as we implement the strategies set out in our strategic review last October."

He said that a new management structure was now in place to implement the direct-to-consumer marketing strategy unveiled earlier this year, with initial revenues likely to flow in the first half of 2013.

F & C, which has pledged to develop its investment trust business employing more than 100 in Edinburgh, said consumer and institutional AUM had increased by £500 million in the quarter.

It pointed to annualised revenue yield on that business of 0.4% for the year to date, three times the yield on its strategic partner assets of 0.13%.