14 | BUSINESS REVIEW| Our trading performance and outlook
funded, net of withdrawals, of some £0.8 billion. We believe our institutional business is well positioned for growth, with strong investment track records, significant scale and consultant support in a number of core capabilities. As we look forward, we will seek to enhance our product range with new offerings which we believe will meet the emerging needs of institutional investors.
The Group also offers a wide range of collective investment vehicles which are distributed into the retail and wholesale markets, principally through Independent Financial Advisers, discretionary wealth managers and other wholesale channels such as banks and platforms. These products comprise closed-end listed investment companies/investment trusts and both UK and offshore-domiciled open-ended mutual funds. Some of these vehicles are managed by F&C staff and others by teams operating through the Thames River LLPs. It is important to distinguish between these, as the allocation of revenues and profits differ significantly. Where a fund is managed by a Thames River team, the revenues earned from that fund, net of the direct costs of managing the fund, and certain allocated costs, are shared between the senior investment professionals in the investment team and the Group under a predetermined profit share formula. This typically results in the senior investment professionals receiving around 50 per cent of the relevant profits. Where a fund is managed by F&C staff, the relevant investment managers are generally remunerated by a combination of salary plus a discretionary bonus.
During 2012, the total assets managed in fund products and investment trusts declined by £0.8 billion to £12.3 billion at 31 December 2012. The decline was principally attributable to wholesale outflows of £1.2 billion, offset by market growth in retail funds and investment trusts. Wholesale redemptions were principally attributable to investment performance and related portfolio positioning within the Thames River Global Credit and Global Bond teams. After a number of years of outflows from share buy-backs, our investment trusts posted a small positive flow for 2012, with a number of trusts issuing new equity to meet shareholder demand.
During 2013, we anticipate that our wholesale efforts will be biased towards a number of fixed income products, including emerging market debt and convertibles, while within the retail channel our focus will be biased towards our Multi-manager funds.
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