Ignis Asset Management has seen its operating profits fall 18 per cent in the first half of 2011.
The group has recorded £18m of profits, down from £22m in the first half of 2010. Ignis has also seen its assets under management fall in the first half of this year. At June 30, 2011, the firm’s AUMs stood at £67.2bn, compared to £68.9bn at December 31, 2010.
Net new third party business in the first half stood at £800m in the first six months of this year, which the firm says is in line with last year’s returns.
Total expenses at Ignis stood at £48m for the first half of 2011, up from £42m in 2010.
Ignis’s parent group Phoenix life has also seen its operating profits fall to £136m in the first half of this year, down 23 per cent on the £176m in the first half of 2010. Phoenix says that further investment in the business development and infrastructure at Ignis was part of the reason for the fall.
In its statement, Phoenix group said: “The increase in expenses reflects investment in additional asset management capability together with the infrastructure to support Ignis’s expansion plans.
“This includes new premises in London, building out of support functions and investing in the system architecture.”