RLAM inflows tumble as market conditions bite

Royal London Asset Management (RLAM) said today net new business had fallen sharply in 2011 as the uncertainty caused by the sovereign debt crisis in Europe hit sentiment.

Net new business at RLAM in the 12 months to 31 December remained positive at £379m, but was down 67% on the previous year's £1.1bn. This was due to the prevailing market conditions, it said.

It added long term performance at RLAM, which invests a significant portion of client monies in its equity and bond OEICs, remains strong despite the "prevailing economic environment, ongoing market volatility and uncertain outlook".

Phil Loney (pictured), group CEO, said: "2011 has been a very challenging year as austerity measures in the UK continue to bite and the economic backdrop remains difficult.

"I am therefore pleased to report an increase in new business for the year, with all our operating businesses performing well. This reflects our focus on providing quality products and excellent service.

"Our plans assume that market conditions will remain uncertain and difficult in 2012, but we remain focused on delivering good performance, in terms of both new business and financial results."

Meanwhile, Royal London-owned platform Ascentric saw net new assets rise 8% in 2011 after 226 extra adviser firms signed up to the Royal London-owned wrap.

Net new assets via the group's wrap and white label platform services were £1.3bn, bringing its total assets under administration to £3.7bn, a 48% increase on end 2010.

It said the extra 226 adviser firms introduced some 10,000 new customers to the platform.

Elsewhere, Scottish Life, the group's pensions proposition, saw a 4% increase in new business to £2.3bn, while its protection businesses, Bright Grey and Scottish Provident, saw a 17% increase in sales in the period.