Rlam suffers £310m fund outflow
Group loses a net £310.3m compared to a £583m inflow last year.
Royal London Asset Management (Rlam) has reported net outflows of £310.3m during the first half of 2012, primarily from fixed interests assets as clients turned away from the perceived ‘safe haven’ asset class.
The outflow compares with a net inflow of £583m during the same period in 2011, an £893m swing in fund flows.
According to the firm’s interim financial statements, funds under management rose 2 per cent to £44.9bn in the first half to June 30, compared with £44bn at the end of last year.
Rlam said in spite of the outflow it had won new mandates from a range of organisations, including corporate pension schemes, friendly societies, educational establishments and charities.
But profits for the asset management arm’s parent group, Royal London, dropped by nearly a quarter as the firm was hit by adverse economic conditions and a low interest rate environment which “reduced the pace revenues emerged”.
Royal London added its proposed acquisition of the life assurance and asset management businesses of the Co-operative Banking Group was still underway and an announcement would be made in due course.