F&C Investments, whose executive chairman Edward Bramson has made a move on private equity firm 3i Group, continued to suffer net outflows in the last three months of 2012, raising questions over its ability to increase revenues in the wake of cost-cutting initiatives.

In a year-end trading statement, the UK fund manager reported it had experienced net outflows of £4.9bn in the fourth quarter, following a loss of institutional mandates and the decision of strategic partner Friends Life to remove bond business.