BMO still likes F&C after defection

|By:, SA News Editor

Friends Life Group will withdraw £14.5B from the asset manager by year end, according to F&C - that foots to 18% of AUM and adds to £20.3B of outflows experienced in 2013.

It "doesn’t change our view that the transaction is attractive from a strategic, financial and cultural perspective," says a Bank of Montreal (BMO -0.6%) spokesman. BMO and F&C inked a sale deal in late January for £708M, and - at the time - BMO said it expected additional withdrawals from F&C's strategic partners over the next couple of years.

Friends' exit will cut about £24.3M from revenue, says F&C, which adds it won't be able to cut costs this year fast enough to compensate.