Royal London Asset Management added £1.32bn of net business in the first half of the year – £1bn more than the same time last year.
Royal London’s platform, Ascentric, fared less well as it took in £651m of net new assets, down 25 per cent compared to the first half of 2013. Ascentric has around £8bn assets under administration.
Most of the new RLAM business was wholesale, while the firm’s outflows were cut back to just £540m. In the first six months of 2013, £963m flowed out of the business.
Wholesale flows were £745m and most of the money went into equity income and credit funds. RLAM also bagged a new mandate from the Hertfordshire County Council, among the £569m institutional flows.
The firm had £77bn in assets under management at 30 June, up 5 per cent since 31 December and by more than half again on a year earlier. That was boosted by the purchase of the £20bn Co-operative Asset Management business in July last year.
Royal London mutual group chief executive Phil Loney says he is pleased with the business’s momentum.
“In our asset management business, new business acquisition remains extremely positive, especially in the wholesale sector,” he says.
“Just as importantly, we are experiencing high levels of retention in this area of the business, demonstrating that the growth we’re seeing in asset management is long-term.”
The firm’s recent rebrand and marketing campaign is bearing fruit, he adds.
“It has prompted a significant rise in consumer awareness and positive customer reaction, and it has given us great momentum as we continue to build Royal London into a well-known mutual brand.”
The wider group posted an operating profit before exceptional provisions of £110m, up 8 per cent on a year earlier.