RLAM new business slumps 67%

Net new business at Royal London Asset Management (RLAM) fell 67% over the 12 months ended in December.

The sharp drop off, excluding cash mandates, takes RLAM's net new business total to £379 million, compared to £1.13 billion the year before.

Assets under administration grew 8%, but Phil Loney, group chief executive of Royal London, said that the previous 12 months had been tough.

'2011 has been a very challenging year as austerity measures in the UK continue to bite and the economic backdrop remains difficult,' he said.

The firm said that long term performance remains strong despite the prevailing economic environment, ongoing market volatility and uncertain outlook, and that half of the firm's open-end funds had achieved first or second quartile performance over the year reviewed.