Financial results

Ignis reports net new business of GBP0.9bn in H1 2013

Ignis Asset Management attracted GBP0.9bn of net inflows in the six months ended 30 June 2013, including GBP344m of net inflows into the GBP1bn Ignis Absolute Return Government Bond Fund.

 
Ignis’s IFRS operating profit was GBP19m in the same period.
 
According to the firm’s interim results, a greater percentage of net inflows came from higher margin products sold overseas. Net sales excluding liquidity products increased 57 per cent vs H1 2012 and net sales overseas increased by 68 per cent1 vs H1 2012.
 
Third party revenue now represents some 30 per cent of total management fees.
 
Ignis’ total AUM fell slightly to GBP66.9bn at end of H1 2013 (H1 2012: GBP68.3bn) due largely to the natural run off of Phoenix Group closed life insurance business.
 
Some 73 per cent of total AUM outperformed the respective benchmarks or peer groups during the half year period.
 
Chris Samuel, chief executive, Ignis Asset Management, says: “I am pleased to announce an IFRS operating profit of GBP19m. This represents a stable set of results and reflects continued progress in the implementation of our plans for the business in particular to grow our third party franchise.
 
“Strong investment performance, especially for Ignis’ flagship fixed income absolute return, property and liquidity funds, helped to generate net inflows of GBP0.9bn during the period. This represented a 68 per cent increase in international net inflows and a 57 per cent increase in higher margin, non-liquidity net inflows vs HY12.
 
“In 2009, Ignis set about implementing a new strategy which included growing its third party franchise. I am pleased to say the business has made good progress over this period as third party assets, excluding former joint venture assets, have more than doubled and some 30 per cent of management fees now come from clients outside of Phoenix Group.
 
“Ignis’ IFRS operating profits were flat compared to the first half of 2012 at GBP19m. The impact of lower revenues caused by the run-off of life company assets and the restructuring of former joint ventures was offset by increased third party revenues and reduced expenses.
 
“The progress we have made provides a firm foundation upon which to continue implementing our plans for future growth. One aspect of this will be to broaden our product offerings. We plan to add to our range of absolute return funds by launching a hedge fund version of the Ignis Absolute Return Government Bond Fund, targeted primarily at more sophisticated institutional investors, and an Absolute Return Emerging Market Debt Fund. Both funds are due to launch to third party investors later this year.”

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