RLAM reports 85% drop in new business

Royal London Asset Management saw the value of its new business drop 85% during the first half of the year.

For the six months to 30 June 2010, new business totalled £1.1m, down from £7.5m during the same period last year.

Although it won a higher volume of new business, the mandates were less profitable, the group says.

"The volume of new asset management mandates acquired by RLAM was significantly up on H1 2009 although at the cost of lower margins reflecting the competitive market. The margin was particularly depressed by a small number of very large, low margin cases which will require minimal ongoing management," Royal London says.

Overall, Royal London reported an IFRS loss before tax of £2m in the first half of 2010.