Phoenix performing well so far this year

Phoenix, the UK's largest specialist closed life fund operator, saw its share price inch higher after reporting that it has generated £603m cash from its operating companies in the year to date.

The firm sustained its assets under management at £68.3bn and is set to achieve the early delivery of target for sub-50% gearing level by end of 2011.

The firm's cash and cash equivalents more than doubled to £691m.

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During the period the company completed the migration of London Life policies to a modern administration platform and undertook the successful court hearing on the next stage of its funds merger programme.

Group chief executive Clive Bannister said: "Although not immune to market conditions, Phoenix has a resilient business model with predictable long-term cash flows.

"We have a deep well of expertise in risk, restructuring, operational and outsourcing management, which enables us to accelerate cash generation. Ignis, our asset management business, was successful in sustaining assets under management throughout a period of severe market volatility.

"The Phoenix Way of managing closed life funds has enabled us to generate free surplus in the Life Companies consistent with meeting our £750-850 million cash target whilst sustaining our IGD surplus at £1.1 billion despite the challenging external environment."

The share price rose 1.57% to 492.6p by 14:23.

NR