07 March 2018

Legal & General Investment Management experiences strong growth in 2017

Business Highlights:

  • Total net inflows of £43.5bn (2016: £29.2bn)
  • AUM up 10% to £983.3bn (2016: £894.2bn)
  • 29% increase in international AUM to £228bn (2016:£177.4bn)
  • Workplace Savings assets up 33% to £27.7bn (2016: £20.8bn)
  • Record retail net inflows of £3bn (2016: £1.4bn)

Legal & General Investment Management (LGIM) today announced a strong set of financial results for 2017. LGIM experienced a 10% increase in assets under management (AUM) to £983.3bn (2016: £894.2bn) owing to strong net flows across the business of £43.5bn (2016: £29.2bn). Operating profit rose 9% to £400m (2016:366m)

LGIM’s strong 2017 results were in part due to the growth of its international businesses, which experienced a 29% increase in AUM to £228bn (2016: £177.4bn) with record net inflows of £33bn (2016: £14.5bn). This included net inflows of £12.6bn in the US (2016: £9.4bn), £12.6bn in Europe (2016: £2.6bn), £3.6bn in the Gulf (2016: £1.7bn), and £4.2bn in the Pacific Rim (2016: £0.8bn). In 2017, LGIM established a regional office in Tokyo and trading and fund management capabilities in Hong Kong. LGIM has also enhanced its European distribution strategy through the announcement of its acquisition of Canvas, the exchange-traded fund (ETF) platform.

LGIM’s defined contribution (DC) business continued to grow rapidly with total UK DC AUM increasing by 19% to £68.2bn (2016: £57.1bn) and total net inflows of £3.0bn (2016: £2.0bn). LGIM has experienced a 20% increase in customers on its Workplace pension platform, with the number of members now at 2.7m (2016: 2.2m).

The retail business experienced record net inflows of £3.0bn (2016: £1.4bn) with its AUM increasing to £29.7bn (2016: £24.1bn), benefiting from an expanded product range and broader distribution strategy. The business was third in net retail sales for the second consecutive year*, experiencing strong inflows into multi-asset, index and property products.

Net external inflows into LGIM’s Solutions business – which includes liability-driven investment (LDI) and multi-asset solutions – increased to £44.8bn (2016: £34.7bn), driven by DB pension schemes implementing a broader range of LDI strategies and high demand for multi-asset strategies from DC schemes and retail customers. LGIM’s Global Fixed Income business experienced continued strong performance, attracting inflows of £8.7bn (2016: £4.3bn).

The Real Assets business has continued to expand, with good growth in private credit. LGIM originated over £2.8bn of investments across corporate and infrastructure debt and real estate lending in 2018 and saw continued success with its Build to Rent business. Real Assets AUM has grown to £23.8bn (2016: £19.6bn).

Mark Zinkula, CEO at LGIM, says: “We have positioned the business to build on our market-leading position in UK defined benefit (DB) pension solutions and achieved strong growth in the international, DC, and retail markets. Our international business achieved £33bn of net inflows, with AUM now at £228bn, and we expect this momentum to continue in 2018.

“We have seen continued strong growth in our DC and retail businesses. The direct-to-consumer market is also of strategic importance to LGIM and we will be enhancing our personal investing platform later this year. We will continue to invest in expanding our business.”

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

Legal & General Investment Management (LGIM) is one of the UK’s largest asset managers and a major global investor, with total assets under management of £983.3bn*. 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 2017, including derivative positions and advisory assets. These figures include assets managed by LGIMA, an SEC Registered Investment Advisor.