Firm sets out Irish plan
Royal London enjoys surge in inflows
Royal London Asset Management has reported a strong first half including a surge in net inflows.
The business benefited from net inflows of £2.1 billion over the six months to 30 June, compared to £467 million over the same period in 2016.
Funds under management hit £106bn against £100bn at 31 December 2016.
The company, which includes former independent insurers Scottish Life and Scottish Provident, said market conditions were more stable in the first half of the year compared to 2016 and funds, especially its short duration bond funds, UK equity and sustainable strategies, performed well.
Over the period the business unveiled two new funds, the Emerging Markets Equity Tracker and the Multi Asset Credit fund.
At group level, Royal London had an EEV operating profit before tax of £185 million, up 34% year-on-year. This was attributed mainly to strong new business profit of £149m in pensions, consumer and Royal London Asset Management.
Phil Loney, group chief executive, said: “Our market position reflects our strategy of delivering high-quality products and service. We continue to invest in our capabilities to increase value for money for customers and to make it easier for their advisers to do business with us.”
Commenting on the group’s decision to base its EU operations in Ireland, he added: “We are in the process of domiciling a subsidiary in Ireland to enable our business in the Republic of Ireland to continue to trade and to mitigate any uncertainty. We expect to maintain strong capitalisation and profitability as the UK leaves the EU.”