RLAM outflows spike as Ascentric inflows flatline

Royal London Asset Management saw a drop in inflows in the first half of the year, while the Ascentric wrap saw inflows flatline.

The asset management company saw net new external business inflows of £511m, compared to £1.3bn in the same period last year, having been hit by high outflows.

The £1,870m of inflows were on par with last year, but the £1.36bn of outflows were more than double the previous year’s £540m. 

The company saw wholesale net inflows of £388m, with the UK Equity Income and Corporate Bond funds each seeing £135m in inflows, followed by Sterling Credit with £49m in inflows and the Cash Plus fund with £27m.

The Ascentric wrap platform benefitted from the new pension freedoms, with a 115 per cent increase in customers transferring to drawdown. However, gross sales stayed flat, with £1.19bn of sales in the first half of the year, compared to £1.16bn at the same time last year, a 3 per cent rise. 

Net new assets under administration on Ascentric dropped in the first half to £565m, from £651m in the same period last year.

However, assets on the platform grew in the past six months.

“Ascentric, our wrap platform administrator, has achieved strong levels of new business growth and has increased its assets under administration by 8 per cent during the first half of 2015 to £9.6bn,” state the results.

“Royal London is one of the beneficiaries of the pension freedoms, given that we have virtually no exposure to the annuity market and already had a strong drawdown proposition,” says Phil Loney, group chief executive of Royal London. 

At a group level, funds under management were £83.4bn on 30 June 2015, up 1 per cent on the end of 2014, when they were £82.3bn.

“We are pleased to be reporting a strong set of new business results and robust operating profits for the first half of 2015.”