In 2021, RLAM expects AUM to reach new highs

Publié le 04/03/2022 - Hamza Lafif
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Following solid flows throughout the year, Royal London Asset Management's assets under management reached record levels in 2021.

Net inflows increased from £3.8 billion to £5.3 billion, bringing total AUM to £164 billion, up from £148 billion the previous year.

Meanwhile, operational profit before tax reached £133 million, reverting to pre-Covid-19 levels in 2020.
According to the group's CEO, Barry O'Dwyer, RLAM was founded in 1861 to help "working families to protect themselves from the shame of suffering a pauper's funeral".

He stated: "Although our business has grown and developed over the years, our purpose as a mutual has never been more relevant.

"2021 was a good year for Royal London. Sales and profits are both up on last year. We have maintained very strong flows into our asset management business, helping assets to hit record levels.

"Our Governed Range remains a hugely popular choice amongst independent financial advisers and this range alone accounts for over £50bn of our customers' investments. The action we have taken to reduce the carbon intensity of the equity investments in this range shows that a well-run portfolio can generate excellent returns in a responsible way."

Kevin Parry OBE, chair, adding that the company will split £169 million in earnings with "eligible" clients this year.

"Since we introduced ProfitShare in 2007, Royal London has returned more than £1.2bn, which is only possible because we are mutual. In the last 10 days, the conflict in Ukraine has significantly increased the human and socio-economic risks in Europe and the world.

"We are closely monitoring all developments and have made an emergency charitable donation of £250,000 to the British Red Cross Ukraine Crisis Appeal that is providing humanitarian relief in Ukraine."
According to O'Dwyer, the present Ukrainian situation has helped galvanize aspirations to wean Europe off its reliance on Russian gas, while also promoting financial flow into the renewable energy field, enhancing energy independence.

Energy costs are projected to rise much more if the conflict between Russia and Ukraine continues. The "squeeze on household incomes" will be severe, influencing how individuals spend and invest their money.

He observed that, as a mutual, Royal London was well-positioned to utilize investing to have a beneficial influence on the globe while also "hopefully generating financial returns."

According to the CEO, Royal London is keeping a careful eye on the conflict between Russia and Ukraine. But, in the middle of this instability, no one knows what will happen in the near future. "The secondary consequences are yet to be seen," added O'Dwyer.

 

Hamza Lafif Junior Sales Assistant.

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