09 August 2017

Legal & General Investment Management experiences strong growth in H1 2017

 Business highlights:

  •  AUM up 13% to £951.1bn (H1 2016: £841.5bn)
  •  Total net inflows of £21.7bn (H1 2016: £9.6bn)
  •  31% increase in international AUM to £198.3bn (H1 2016: £151.9bn)
  •  Ranked first in UK retail net sales in Q2 2017
  •  Operating profit up 13% to £194m (H1 2016: £171m)

 

Legal & General Investment Management (LGIM) today announced a strong set of financial results for the first six months of 2017. Total external net inflows increased to £21.7bn (H1 2016: £9.6bn), driving a 13% growth in assets under management (AUM) to £951.1bn (H1 2016: £841.5bn). Operating profit rose 13% to £194m (H1 2016: £171m).

LGIM’s international growth has continued to gather pace, with the international business experiencing record net inflows of £17.9bn (H1 2016: £6.7bn): a 31% increase in assets that has brought total international AUM to £198.3bn (H1 2016: £151.9bn). International assets now account for over 20% of total AUM.

Almost all channels, regions and investment capabilities experienced positive net flows. International growth was predominantly underpinned by the US business, which delivered £8.6bn (H1 2016: £3.1bn) across Solutions, Active Fixed Income and Index funds. Net inflows were £6.6bn in Europe (H1 2016 £1.5bn), £2.5bn in the Gulf (H1 2016 £1.6bn) and £0.3bn in Asia (H1 2016: £0.5bn).

LGIM’s DC and Retail businesses have also gained significant traction. The DC business attracted total net flows of £1.7bn (H1 2016: £0.8bn) driven by LGIM’s bundled business, which offers investment and administration services to DC schemes.

Meanwhile, the Retail business experienced rapid growth, with net inflows of £1.7bn (H1 2016: £0.7bn) bringing total retail AUM to £26.8bn. LGIM was ranked first in UK retail net sales in Q2 2017.1

Net external inflows into LGIM’s Solutions business – which includes liability-driven investment (LDI) and multi-asset solutions – increased to £20.4bn (H1 2016: £9.4bn), driven by DB pension schemes implementing a broader range of LDI strategies and by DC schemes and retail customers seeking a range of multi-asset strategies. LGIM remains the largest UK provider of LDI with 42% market share.

The Active Fixed Income business has attracted net external inflows of £5.3bn (H1 2016: £2.6bn) driven primarily by institutional clients in the UK and US. The Real Assets business has also continued to expand, with particularly strong growth in private credit; LGIM originated over £1bn of investments across real estate, infrastructure and corporate debt. Real Assets AUM has grown to £21.2bn (H1 2016: £18.4bn) and LGIM is continuing to see success with its Build to Rent fund, with approximately £1bn in capital raised.

Mark Zinkula, CEO at LGIM, said: "We once again experienced positive asset flows across almost all channels, regions and investment areas in the first six months of 2017, which illustrates the breadth of LGIM’s business model. In addition to being the largest manager of DB and DC assets in the UK, our retail business continues to gain market share, ranking first in net sales during the second quarter. We are experiencing increasing momentum in all of our target international markets, with record net flows from international clients.

"Looking to the future, we will continue to use our scale and influence as an investor to bring about positive change in the companies and markets in which we invest. Our clients are increasingly recognising and valuing the role LGIM is playing across a range of corporate governance and sustainability topics."

ENDS

Further information

Nicolette Botbol
Media Relations Manager
0203 124 4355
[email protected]
www.lgim.com

Notes to editors

Legal & General Investment Management

*Source: Pridham report, Q2 2017

Legal & General Investment Management is one of Europe’s largest asset managers and a major global investor, with total assets of £902 billion*. We work with a wide range of global clients, including pension schemes, sovereign wealth funds, fund distributors and retail investors.

Throughout the past 40 years we have built our business through understanding what matters most to our clients and transforming this insight into valuable, accessible investment products and solutions. We provide investment expertise across the full spectrum of asset classes including fixed income, equities, commercial property and cash. Our capabilities range from index-tracking and active strategies to liquidity management and liability-based risk management solutions.

* LGIM internal data as at 31 December 2016. These figures include assets managed by LGIMA, an SEC Registered Investment Advisor. Data includes derivative positions and advisory assets.