Ignis Asset Management has reported strong inflows during the first nine months of the year despite assets under management dropping to £67.9bn during the third quarter from £71.6bn.
Parent Phoenix Group has attributed the decrease in assets under management to a transitional arrangement relating to a £5bn mandate win from Guardian Financial Services.
The group announced assets under management had dropped from £71.6bn at the end of June, despite inflows from third parties of £2.9bn in the nine months to 30 September 2012. Inflows include £1.5bn of assets from the Guardian investment mandate.
Ignis secured the £5bn mandate win from Guardian in June, currently, £3.5bn of the assets are temporarily held with a third party manager as part of the transaction’s implementation arrangements. According to the group, the majority of these assets are expected to be transferred back to Ignis at the end of the year.
“In the nine months to 30 September, excluding the impact of the transitional arrangement pertaining to £3.5bn of Guardian assets, third party inflows and positive market movements have largely offset the natural run-off of the closed life funds,” reports parent Phoenix Group.
Group chief executive Clive Bannister adds: “I’m very pleased to report another solid set of results, showing continued progress in cash generation, strengthened group solvency, and net asset inflows into Ignis from third parties.”