Published 18 August, the results showed net new business flows of £511m in the six months to 30 June, a 61% slide on the £1.32bn garnered in the respective period in 2014.
The firm’s £1.9bn inflows, which represented a 1% uptick on figures recorded a year previous, were offset by £1.4bn of redemptions – a 152% jump on the £540m in outflows in H1 2014.
In a statement, RLAM explained the significant rise in year-on-year outflows as a return to relative normality.
“In 2013 and 2014 RLAM experienced very high inflows and exceptionally low outflows,” said the firm. “The asset manager’s performance is healthy and is experiencing positive net inflows – institutional outflows are simply returning to normal historic levels.”
While Ascentric, the firm’s wrap platform business, saw its AUM grow 8% in the period from £8.9bn to £9.6bn, the year-on-year figures represented a 13% slide from £651m to £565m.
The firm’s wholesale business was the primary driver of the £388m in net inflows, with both the UK Equity Income and Corporate Bond funds contributing £135m each.
Net flows in the RLAM’s institutional arm totaled £123m, predominantly into RLAM’s cash and buy & maintain schemes.
Retirement planning
At a group level, Royal London’s funds under management rose incrementally in the period to £83.4bn, up 1.3% on £82.3bn six months earlier.
The firm attributed the rise to increasing business volumes and margins stemming from the pensions reforms implemented in April, with margins climbing from 0.9% to 1.6% year-on-year and new business going up 9% in the same period.
