F&C Management, the UK investment group, saw a 31% increase in operating profits to £20.8m (€31m) in the first half of 2004 as it benefited from improved revenues and institutional outsourcing arrangements.

The firm, which is being sold by the Dutch insurer Eureko to Isis Asset Management, the UK fund management firm, outsourced the administration of a €60bn ($74.1bn) pension fund business to Mellon.