Parent company Royal London today reported gross inflows into its asset management arm of £5.1bn in Q2 2017, up from £2.3bn for the same period last year.
The firm saw a gross flow of £2bn into its wholesale channel, which it said “continued to be strong” as it broadened its coverage of wealth managers and financial advisers.
Overall RLAM saw a net inflow of £2.1bn after taking into account a £3bn outflow over the period.
The firm’s overall funds under management increased by 6% to £106bn, up from £100bn at the end of December 2016, buoyed by “more stable” market conditions in Q1 2017 versus the same period in 2016.
Institutional gross inflows were £3.1bn, up from £1bn at 30 June 2016.
Royal London said the results were also boosted by good performance in certain funds, particularly short duration bond funds, UK equity and sustainable fund ranges.
It also said recent fund launches – the Emerging Markets Equity Tracker Fund 5 June and the Multi Asset Credit (MAC) Fund on 17 July – had been successful.
Elsewhere, Royal London Platform Services (RLPS) gross inflows were up 27% to £1.4bn from £1.1bn on 30 June 2016.
The provider’s wrap platform, which trades under the Ascentric brand, saw assets under administration increase by 9% to £13.4bn up from £12.3bn as at 31 December 2016.
Royal London reported European Embedded Value (EEV) operating profit before tax increased by 34% to £185m, compared with £138m on 30 June 2016.
Phil Loney, group chief executive of Royal London, said: “Our strategy remains to deliver excellent value for money by focusing on creating the best customer outcomes and best customer experiences at really competitive prices. This philosophy is rooted in our status as a mutual.
“The growth in profit and new business sales we announce today underlines the continued success of our strategy.”
Royal London also said it was in the process of domiciling a subsidiary in Ireland to enable its business in the Republic of Ireland to continue to trade and to mitigate any uncertainty arising from the UK’s vote to leave the European Union.
“We expect to maintain strong capitalisation and profitability as the UK leaves the EU,” Loney said.
