Assets under management climbed 8% from 2011 up to £47.6bn. The firm has benefited from the addition of two new funds to its fixed interest range, the Royal London European Corporate Bond Fund, launched in August, and the Royal London Duration Hedge Credit fund, which was rolled out a month later.
The Royal London UK Equity Income Fund was the pick of the equity funds, attracting £94.8m of new business. This is a welcome fillip for the firm, having recently announced a rationalisation of its equities offering which saw the departure of head of equities Jane Coffey and its Japanese and Far Eastern equity portfolios being switched from active to passive management.
Segregated institutional clients accounted for over 60% of the total inflows as RLAM’s ‘buy & maintain credit’ offering and other credit-based strategies remained popular with corporate pension schemes.
Wholesale clients accounted for flows of £680m, more than 30% of total new business, split between equity and bond funds.
Andrew Carter, CEO of RLAM, said the firm had benefited from continued good investment performance and a product range that is well positioned to meet the changing needs of investors.
“As we bring new product offerings to the market backed up with our award-winning levels of client service, we look forward to repeating our success in 2013,” he added.
“Despite an uncertain economic growth outlook, we remain constructive on risk assets. Resolving US fiscal issues, together with further policy stimulus from central banks and increased corporate investment could prompt a marked reduction in risk premiums.”