RLAM posts 73% slump in net inflows as volatility bites

Loney-Phil-Royal London-2013

Royal London Asset Management has reported a 73 per cent fall in net inflows for 2015 which the fund group has attributed to recent market volatility and changing risk appetite.

In its latest results for the year to 31 December, RLAM posted net flows of £532m, down from just over £2bn in 2014.

Gross inflows reached £3.1bn for the year, a 16 per cent drop from the £3.8bn recorded the previous year.

RLAM says key inflows were to its Buy & Maintain Strategy funds and its Equity Income and Corporate Bond funds.

Outflows hit £2.6bn last year, a 49 per cent increase on the £1.8bn in outflows seen in 2014.

Overall funds under management stood at £84.5bn as at 31 December, up 2.7 per cent from £82.3bn the previous year.

Ascentric, Royal London’s platform, saw assets under administration go from £8.9bn to £10.1bn, a 13 per cent increase over the year.

Royal London chief executive Phil Loney says: “In a very difficult market for all asset managers and platforms, RLAM and Ascentric both had a good year. 

“Both businesses achieved strong gross sales performance and maintained commendable year-on-year new net asset performance. This was achieved despite the increasing volatility of markets, and changing investor risk appetites, which have left several of our fund management competitors facing net outflows.”