The flat profit growth came as a surprise, after a predicted loss for the first half of 2013. Key to the results, was a good performance by the Ignis Absolute Return Government Bond Fund which saw £344 million of net inflows, as well as strong third party revenue, which now represents some 30 per cent of total management fees.

As such, the net inflows were in line with those seen in the first half of 2012 and slightly up from the money brought into the funds in the second half of last year.

Chris Samuel, chief executive of Ignis said the progress had made the firm ready to launch two new funds, which will target more sophisticated institutional investors.

“The progress we have made provides a firm foundation upon which to continue implementing our plans for future growth. We plan to add to our range of absolute return funds by launching a hedge fund version of the Ignis Absolute Return Government Bond Fund, targeted primarily at more sophisticated institutional investors, and an Absolute Return Emerging Market Debt Fund. Both funds are due to launch to third party investors later this year,” said Samuel.

However, Ignis’ half-year report for 2013 also showed negative signs, as total assets under management fell slightly to £66.9 billion in the six months leading to 30 June 2013. This was largely due to the natural depreciation of assets after parent company Phoenix Group closed its life insurance business.