UK - Edinburgh Fund Managers' profits plunged 40% during the first half of the year.
EFM blames the fall on the loss of key clients and plummeting markets.
The beleaguered firm, which manages £1.9bn in institutional funds, saw profits fall to £1.12m for the first six months of the year compared with £1.87m recorded for the same period last year.
Funds under management have fallen from £7.1bn to £4.1bn since the start of the year, while turnover dropped 1% to £16.6m. The results and market uncertainty have prompted EFM’s board to scrap its first half dividend.
The results come as EFM looks set to lose its biggest pension fund client, the £1.48bn Bank of Scotland Pension Scheme, which would wipe out about half of its institutional assets under management.
EFM manages around £900m for the scheme, but its contract expires at the end of the year. Insight Investments, Halifax Bank of Scotland’s in-house fund manager, is tipped as the likely winner of the mandate.
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