City wakes up to F&C challenge - papers 1 February

An investment plan based on reducing the operating margin to help gee up performance through this year was not enough to undo the surprise felt in the City, which pummelled the stock to a one-day record 17.8% loss. The retail side of F&C’s business did far better – open ended fund sales jumped 98% through 2006, but the total amounts pale beside the amounts being discussed as withdrawn by institutions. The Times says F&C’s numbers did nothing to help Friends Provident, which also saw its shares pressured by its 51% ownership stake in the asset manager, as well as questions over margins...