Royal London Asset Management (RLAM), the asset management arm of Royal London, has reported gross inflows of £2.3bn for the first half of 2016, a jump of 24% compared to £1.9bn a year earlier.
The inflows were from both institutional and wholesale markets, Royal London said.
Royal London group CEO Phil Loney said: "RLAM recorded a strong performance in the first half of 2016 with good gross and net inflows in sharp contrast to others in the asset management sector. Institutional business was particularly strong, with a number of new clients investing in the credit and government bond portfolios in particular.”
Gross sales at the group’s Ascentric wrap platform dipped 10.1% to £1.07bn from £1.19bn in the prior year. However, the platform’s assets under administration increased 7% to £10.8bn compared with £10.1bn at 31 December 2015.
Overall, the group's funds under management were £93.8bn at the end of the first half of 2016, a rise of 11% from £84.5bn at 31 December 2015.
The group European Embedded Value (EEV) operating profit increased 20% to £138m in the first half from £115m a year ago. The company said that the rise in profit was supported by strong new business profit growth of £22m mainly in pensions, intermediary protection and RLAM.
“Today we are announcing a strong set of results delivered against the uncertain backdrop of the UK referendum on EU membership and continuing low interest rates. Despite the reduction in interest rates, profit margins have held up well, allowing continued investment in the business to support the development of our product and servicing capabilities,” Loney said.