F&C Asset Management, the listed London-based fund manager, this morning unveiled a £12m cost-cutting plan just two weeks before an extraordinary general meeting demanded by activist investor Sherborne to remove the manager’s top brass.

F&C aims to reduce £12m a year, approximately 7.5% of annual total costs, by outsourcing operational functions. In a statement in December, activist investor Sherborne, led by Edward Bramson, announced plans to replace incumbent Nick MacAndrew as chairman and elect two outside nominees to the board, after calling the company's operations into question.