Swip suffers £6.6 billion outflow

Scottish Widows Investment Partnership (Swip) has seen an increase in outflows from its funds last year, which the firm says reflects a ‘lack of consumer confidence’ in investment products across the industry.

The group saw a total £19.5 billion of outflows from its funds and a reduced level of inflows into its range, amounting to £12.9 billion, resulting in net outflows of £6.6 billion.

‘Outflows in Swip also consist of attrition within the insurance funds and strategic asset allocation decisions,’ the group added.

Total funds under management increased over the year by £7.1 billion to £189.1 billion, largely driven by improved investment markets, while the group attributed inflows through the year primarily to St James’s Place.

The group reported profit before tax of £108 million and gross external new business, excluding cash, of £1.5 billion.

Dean Buckley, Managing Director of Swip, said: ‘In 2013 Swip continued its strong and steady financial performance, recording a profit before tax of £108 million, an increase of £9 million from 2011. I am delighted with this achievement, particularly given the difficult market conditions.

‘In 2012 we made important changes to the business, including the restructuring of our equities business which helped deliver better outcomes for our clients. 

He added: ‘We also continued to build on the strong performance in our real estate and fixed income businesses, in addition to strengthening our leadership team with a number of key appointments including Lynda Shillaw as director of real estate and the promotion of Will Low to director of equities.’