Ignis Asset Management has reported strong net inflows in the opening half of the year as the firm continues its strategy to grow its third-party assets.
The firm’s interim management statement for the six months ending 30 June 2013 show net inflows of around £900m, equalling the £900m in new money Ignis captured in the second half of 2012.
Ignis’ total assets under management fell to £66.9bn3 at end of the six-month period, down from £68.3bn at the start of the year, driven by the “natural run off” of the closed life insurance business of parent company Phoenix Group.
The bulk of Ignis’ AUM is money managed on behalf of Phoenix, but the firm implemented a new strategy in 2009 to grow its third-party business. Since then, third-party assets have more than doubled to account for around 30 per cent of Ignis’ management fees.
Some £344m of inflows went to the Ignis Absolute Return Government Bond fund, while inflows in the firm’s higher margin, non-liquidity funds were 57 per cent higher than at the end of last year.
Flows into higher margin products helped the firm to offset the impact of outflows from its lower margin, life company business and meant operating profit was broadly flat at £19m.
Ignis chief executive Chris Samuel says: “I am pleased to announce an IFRS operating profit of £19 million. This represents a stable set of results and reflects continued progress in the implementation of our plans for the business in particular to grow our third party franchise.
“The progress we have made provides a firm foundation upon which to continue implementing our plans for future growth. One aspect of this will be to broaden our product offerings.”
Later this year, Ignis plans to an Absolute Return Emerging Market Debt fund, as well as a hedge fund version of the Ignis Absolute Return Government Bond fund for more sophisticated institutional investors.