Royal London Asset Management (RLAM), the asset management unit of Royal London, has reported net inflows of £997m which offset by adverse market movements of £492m.
Performance highlights of RLAM
Assets under management were £139bn as of 30 June 2020, stable compared with the end of 2019.
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The unit’s external net outflows reached £534m in H1 2020, versus inflows of £3.93bn a year ago.
The outflows were mainly due to institutional outflows of £1.9bn. However, this was tempered by the Sustainable Fund range in the Wholesale sector that reported net inflows of £1.3bn.
Internal net inflows were £1.53bn in H1 2020, almost unchanged from the prior year.
At investment platform Ascentric, AUM dropped 4% to £15.5bn due to market volatility triggered by the pandemic.
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By GlobalDataRoyal London agreed to divest Ascentric to investment manager M&G in May this year.
The deal awaits regulatory nod and is expected to close in the second half of this year.
Ascentric enables around 4,000 financial planners to manage around 95,000 customers’ pensions and savings.
Royal London group CEO Barry O’Dwyer said: “Despite market volatility and economic uncertainty assets under management were stable at £139bn. Our capital position remains strong. New business sales for protection products grew by 15%, which was partly as a result of the pandemic reminding customers of the importance of life insurance, critical illness and income protection.
“Pension sales were lower as a consequence of the disruption to advisers’ ability to do business during lockdown.
“In the first half of the year and despite the pandemic, we made progress on our strategic agenda, with the agreement to sell our platform business, Ascentric. We were also pleased to announce that Police Mutual would become part of Royal London. Both transactions are subject to regulatory approval.”
