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Absolute return government bond fund drives Ignis to £0.9bn inflow
by Dylan Lobo on Aug 22, 2013 at 07:57
The popularity of Ignis’ Absolute Return Government Bond fund powered the asset manager to a £0.9 billion inflow in the first half.
The fund accounted for almost a third of this inflow, attracting a net £344 million as the strategy breached the £1 billion in assets under management mark over the period.
Investors were also drawn to other funds in its range as 73% of AUM outperformed their respective benchmarks over the period.
A greater percentage of net inflows came from higher margin products sold overseas with net sales excluding liquidity products increasing 57% year on year and nets sales overseas increasing by 68%. Third party revenue now represents 30% of total management fees.
Assets under management and the Phoenix-owned firm dipped from £68.3 billion to £66.9 billion, which the firm attributed to the ‘natural run off of Phoenix Group’s closed life insurance business’.
Meanwhile profits held steady at £19 million.
Commenting on the numbers Ignis chief executive Chris Samuel (pictured) said: ‘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.
‘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 doubled3 and some 30%2 of management fees now come from clients outside of Phoenix group.’
He added: 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.
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