By Sabela Ojea

M&G PLC said Wednesday that total assets under management fell in the first quarter of the year and announced that it has reached an agreement with Royal London to acquire Ascentric, a digital wrap and wealth-management platform for U.K. financial advisers.

The international savings and investments business--which was spun-off from Prudential last October--said that total assets under management as at March 31 were 323 billion pounds ($397.1 billion) compared with GBP352 billion on Dec. 31, 2019.

Its institutional asset-management business performed well attracting net inflows of GBP5.6 billion for the first quarter of the year, while its institutional asset-management franchise had net inflows of GBP2.1 billion. However, this was offset by net outflows of GBP5.6 billion in its retail asset-management business, it added.

Adjusted operating profit stood at GBP134 million, which the company said reflected a strong performance, "offset by negative mark to market impacts."

M&G noted that its solvency II coverage ratio, a measure of balance-sheet strength, stood at 168% at March 31, and that it will still pay dividends of GBP410 million as previously announced.

The deal to acquire Ascentric will bring GBP14 billion of assets under administration to the firm, strengthening M&G's position in the savings and investments market, it said.

Write to Sabela Ojea at sabela.ojea@wsj.com; @sabelaojeaguix