Ignis Asset Management has reported an IFRS operating profit of GBP43m for the year ended 31 December 2012, having attracted GBP1.6bn of net new assets during the year.
Ignis’ liquidity, absolute return and real estate funds were at the forefront of gross and net sales during the period.
In addition, Ignis was selected to manage a range of mandates on behalf of Guardian Assurance Limited. Accordingly, GBP3.1bn of assets transferred to Ignis in the fourth quarter of 2012 and a further GBP1.6bn is due to transfer to Ignis in 2013. Total direct assets under management at 31 December 2012 stood at GBP68.3bn, placing Ignis in the top 15 UK owned asset managers.
Ignis continued to deliver strong investment performance with 79 per cent of assets outperforming their respective benchmarks or peer groups over one year to 31 December 2012. Especially strong performance was achieved by Ignis’ fixed income and solutions business, which accounts for GBP53bn of assets under management and includes Ignis’ flagship absolute return and liquidity funds.
In a year of significant change, Ignis delivered a resilient IFRS operating profit of GBP43m. Operating profit fell year-on-year (GBP46m at 31 December 2011) due largely to the discontinuation of life company administration services and the restructuring of Ignis’ former joint ventures. The negative impact of these activities was mitigated by strong growth in third party assets. The changes made in 2012 will deliver long-term benefits for Ignis’ core business and will ensure a greater focus on investment performance and customer service. Costs remained flat despite continued investment in people and technology.
Ignis continued to invest in talent in 2012, attracting a number of senior personnel to the business including Graham Ashby, head of UK equities, Mark Julio, portfolio manager – emerging market equities, Ingrid Neitsch, head of credit strategies, Allan MacLeod, head of global accounts, Liisa Juntunen, head of UK institutional, Jeremy Soutter, head of product development, and Grant Hotson, chief financial officer. Ignis also appointed six senior sales and product specialist personnel as it further strengthened its European, institutional and UK wholesale teams.
Ignis chief executive Chris Samuel (pictured) says: “Ignis has made considerable progress against its stated objectives in what was a year of significant change. The discontinuation of life company administration, the restructuring of Ignis’ former joint ventures and additional investment in people, infrastructure and technology has laid a solid platform upon which to facilitate future growth in each of the markets in which we operate.
“It was especially pleasing to receive accolades and ratings for a number of key strategies as 79 per cent of assets beat their respective benchmarks or peer groups over the period. To raise GBP1.6bn of net third party sales in challenging market conditions and at this relatively early stage in Ignis’ development was also very encouraging.
"We continue to invest in the business and have a busy year ahead as we continue to develop our third party franchise. With further absolute return fund launches planned in the summer and the build out of our institutional business, the company is well placed to capitalise on its achievements in 2012."
