Royal London today released its results for the year ending 1 December 2021 and its funds’ assets under management has reached a record £168 billion.
The firm has also reported that its Governed Range has surpassed the £50 billion AUM milestone for the first time.
In terms of fund performance, Royal London said that 99 percent of actively managed funds outperformed their three-year benchmark, up slightly on 2020’s 95 percent.
Royal London’s pre-tax profits also grew by 46.6 percent to £191 million on a year-on-year basis, with the profit share pool also increasing by 15.8 percent to £161 million. These funds are shared with eligible members of the mutual insurer.
During the reporting period, Royal London also acquired Wealth Wizards, a market leading fintech business, to address the growing need for high quality, technology-enabled solutions in the provision of financial advice.
No slouch when it comes to ESG concerns, during the year Royal London transitioned £23 billion of indexed equities in its Governed Range to improve their carbon intensity, helping to reduce the equity components' carbon intensity by 16 percent by the end of 2021
Barry O'Dwyer, group chief executive, said in a statement to the markets: "In 1861, Royal London was established by working people to help families to protect themselves from the shame of suffering a pauper's funeral.
“Although our business has grown and developed over the years, our purpose as a mutual has never been more relevant. We help families in the UK and Ireland to protect what they have today and invest in a better tomorrow. We are responsible stewards of our customers' money. As a mutual, our customers get to share in our success.
"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 £50 billion 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."
