Royal London aims to quadruple Ascentric AUM after 'quiet' 2014

clock • 2 min read

Royal London chief executive Phil Loney has said the group is currently preparing its wrap platform Ascentric to be "four or five times the size it is today" over the coming years, following a tougher 2014.

Ascentric saw a 20% drop in new business in the first half of 2014, according to Royal London interim results out today, with net new assets dropping from £813m to £651m.

Market gains have nonetheless helped boost assets under management from £6.2bn to £8bn, a 30% gain.

Loney said the drop reflected a quieter year for platforms in general, rather than a trend affecting only Ascentric. He said: "We have yet to see the market share figures for the first half of the year. I would be surprised if our market share is down."

He said the next 18 months will see the group focus on boosting Ascentric, in particular investing to make it scaleable. He said the goal was to grow AUM to four or five times the current size of £8bn.

"What we really look at is are we net growth positive, and secondly are we holding onto our market share," he said.

"The market will be a bit stronger some years and less strong other years, but we focus on the relative position of the platform to others in the market place."

However, Loney said Royal London would not turn Ascentric into a life-company branded entity despite the impact this might have in terms of customer recognition.

"We remain committed to Ascentric as an independent wrap platform. We have no plans to change to a Standard Life model."

The platform's incoming chief Jon Taylor will be taking over as managing director of Ascentric in 2015, when current boss Hugo Thorman becomes chairman of the company.

It will continue to work on its latest proposition for financial advisers - which has seen it launch a direct to consumer for IFAs option - which Loney confirmed the firm was still enhancing.

He said the platform has completed the first stage of the launch: “It is being launched in phases over a period of time. A small number of IFAs already have connectivity. It depends on how sophisticated their websites are.

“I do not think you are going to see a big public launch. The whole idea is it is plumbing that plugs into IFAs’ websites. “

More on Investment

Stories of the week: Defence spending, the FCA, and Brickwood

Stories of the week: Defence spending, the FCA, and Brickwood

The German election, Unilever, and UK GDP: The biggest stories from the world of investment and asset management this week

clock 28 February 2025 • 1 min read
Partner Insight: Uncovering the rich tapestry of emerging markets

Partner Insight: Uncovering the rich tapestry of emerging markets

Global emerging markets comprise a large and varied selection of economies and companies. And yet they are often treated as a homogeneous asset class. We seek to debunk some of the misconceptions about emerging markets and unveil the diverse range of potential opportunities they offer, says M&G Investments.

M&G Investments
clock 28 February 2025 • 3 min read
M&G's Matcham: Concentration risk, consolidation and 'reframing' the active debate

M&G's Matcham: Concentration risk, consolidation and 'reframing' the active debate

Building on history of innovation

Katrina Lloyd
clock 26 February 2025 • 6 min read
Trustpilot