Legal & General Investment Management (LGIM) delivered a consistently strong performance in 2010, with growth across all of its core business areas. Gross new business inflows for the year were GBP33.1bn (compared with GBP31.5bn in 2009) and assets under management at year-end rose to GBP354bn (from GBP315bn at the end of 2009).
Continued corporate appetite for pension fund de-risking through strategies designed to match asset and liability cash flows have resulted in strong growth in LDI funds under management to GBP41bn, an increase of 36% on the 2009 figure of GBP30bn. In total Active funds under management (including LDI) saw an increase of 17% to GBP125bn (compared with GBP107bn in 2009).
Index funds, a traditional area of strength for LGIM, continued to grow with net inflows of GBP2.9bn helping drive an increase in assets under management of 10% up to GBP229bn (compared to GBP208bn in 2009).Strong performance in the UK was complemented by an impressive performance overseas, as LGIM’s international diversification strategy continues to gather pace. LGIM America (LGIMA) now manages over $18bn of assets, and has established a successful three year track record with good performance across all the fund range. Furthermore, LGIM has developed distribution capability in the Gulf and mainland Europe where it expects to increase penetration over the next few years.IFRS profit was up 20% to GBP206m (compared to GBP172m in 2009). This increase is attributed to a combination of higher funds under management, a higher fee to fund ratio and a continued focus on costs.
Kevin Gregory (pictured), Interim Chief Executive Officer (LGIM), says: “2010 has been a strong year. We have continued to deliver well in our core areas of strength, whilst successfully diversifying our business internationally. In 2011 we will maintain our focus on delivering the right solutions for our clients and continue to deliver the consistently high quality service for which we have become known.”