01Contents Navigation in left panel F&C Asset Management

Business Review

Financial Statements

Our year in brief
Welcome from the Chairman
Chief Executive’s Report
This is F&C
Managing risk
Our strategy
Our view of the market
Our trading performance and outlook
Our financial performance
Our strategic approach and
commitment to corporate responsibility
02
03
04
07
10
11
14
15
16

19
Independent Auditor’s Report
Consolidated Income Statement
Consolidated Statement of Comprehensive Income
Consolidated Statement of Financial Position
Consolidated Statement of Changes in Equity
Consolidated Statement of Cash Flows
Accounting Policies
Notes to the Consolidated Financial Statements
Five Year Record
Key Performance Indicators
Company Balance Sheet
Company Accounting Policies
Notes to the Company Financial Statements
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41
42
43
44
45
46
55
126
127
128
129
133

Governance

Shareholder Information

Company Directors
Report of the Directors
Directors’ Report on Corporate Governance
Directors’ Remuneration Report
Statement of Directors’ Responsibilities
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22
26
32
39
Notice of Annual General Meeting
Notice to US Shareholders
Corporate Information
143
147
148




Forward-looking Statements

Definitions
This Annual Report and Financial Statements may contain certain “forward-looking statements” with respect to certain of the Group’s plans and its current goals and expectations relating to its future financial condition, performance, results, strategy and objectives. Statements containing the words “believes”, “intends”, “expects”, “plans”, “seeks” and “anticipates”, and words of similar meaning, are forward-looking.

By their nature, all forward-looking statements involve risk and uncertainty because they relate to future events and circumstances which are beyond the Group’s control including among other things, UK domestic and global economic and business conditions, market related risks such as fluctuations in market indices, interest rates and exchange rates, and the performance of financial markets generally; the policies and actions of regulatory authorities, the impact of competition, inflation and deflation; the timing, impact and other uncertainties of future acquisitions or combinations within relevant industries;
and the impact of changes in capital, solvency or accounting standards, and tax and other legislation and regulations in the jurisdictions in which the Group operates.

As a result, the Group’s actual future financial condition, performance and results may differ materially from the plans, goals, and expectations set forth in the Group’s forward-looking statements. F&C undertakes no obligation to update the forward-looking statements contained in this Annual Report and Financial Statements. Nothing in this publication should be considered as a profit forecast.
“F&C, FCAM, Group or Company” F&C Asset Management plc and its subsidiaries

“FP”, “FP Group” Friends Provident plc and its subsidiaries

“F&CGH” F&C Group (Holdings) Limited and its subsidiaries

“F&C REIT” F&C REIT Asset Management LLP and its subsidiaries

“REIT” REIT Property Asset Management LLP and its subsidiaries

“Sherborne or the Sherborne Group” Sherborne Investors (Guernsey) GP, LLC (‘Sherborne GP’), SIGA, LP (‘SIGA’), Sherborne Investors (Guernsey) A Limited, Sherborne Investors Management (Guernsey) LLC and Sherborne Investors LP.

“Thames River” or “TRC” Thames River Capital Group Limited and its subsidiaries or limited liability partnerships (‘LLPs’) which are consolidated within the Group.



Annual Report and Financial Statements 2010