Profits up 12 per cent at LGIM as international business benefits from inflows
Legal & General Investment Management (LGIM) has posted strong results for 2013, with an operating profit of GBP304m – an increase of 12 per cent on the previous year (2012: GBP272m).
Total assets under management (AUM) grew by 11 per cent to GBP450bn (2012: GBP406bn), helped by significant inflows from key international markets.
LGIM’s international expansion accelerated as net inflows more than doubled to GBP15.7bn (2012: GBP7.8bn), helped by strong demand for LGIM America’s LDI and Active Fixed Income capabilities, where net inflows were GBP5bn (2012: GBP3.3bn). LGIMA now manages assets on behalf of several of the largest corporate pension funds in the US. In total, LGIM’s international assets under management were up 37 per cent to GBP59bn (2012: GBP43bn).
Elsewhere, the AUM of LGIM’s Solutions business increased to GBP70bn, a gain of 10 per cent over the year, reflecting gross inflows of GBP8.6bn (2012: GBP5.9bn).
Active Fixed Income AUM increased to over GBP89bn (2012: GBP82bn) as its strong performance track record continued to attract gross flows from pension schemes looking to de-risk their assets.
LGIM’s Index business underpins much of its success in Europe and the Gulf, as well as providing the basis for growth in Retail and the Defined Contribution (DC) business. Index AUM rose to GBP270bn in 2013, an increase of 11 per cent on the previous year (2012: GBP243bn).
Mark Zinkula, LGIM chief executive officer, says: “LGIM had another very successful year with strong growth across the business, especially in international, which has grown to almost GBP60bn in AUM. The US business, in particular, had another outstanding year with continued excellent performance, and our recent acquisition of Global Index Advisors puts us in a strong position to grow DC assets in the US. We continue to expand our product offering and are making good progress in growing our DC and retail businesses.”
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