09 November 2010
Legal & General Investment Management (LGIM) generated £26.5bn of new business during the nine months to 30 September 2010. This figure is 15% higher than the same period last year (Q309: £23.0bn). Net new business was £8.2bn (Q309: £12.2bn). While net new business was down on 2009, the revenue levels improved materially with an improved business mix. Funds under management at the end of September were £342bn, up from £320bn at the end of June.
LGIM continues to attract new money from an increasingly diverse client base. In addition to growing assets in traditional areas of strength (passive management), LGIM also received strong inflows in Liability Driven Investment (LDI), Active Equity and Active Fixed Income. Legal & General Property and LGV Capital have also received a steady stream of new business.
As one of the largest providers of risk management solutions to UK pension schemes, LGIM continues to benefit from the rapid growth in LDI. During the first nine months of the year 17% of LGIM’s gross asset sales were into LDI mandates (Q309: 12%), with additional demand from clients paying fees to LGIM to provide the hedging element of an existing strategy. New business wins also extend to the US market, where Legal & General Investment Management America (LGIMA) is increasingly being recognised by clients and consultants for exceptional performance in long-duration credit and strength in LDI solutions.
In addition to steady inflows into passive equities, LGIM was also awarded a £267m segregated active equity mandate on behalf of Scottish Widows Investment Partnership’s (SWIP) Multi-manager business during the period.
LGIM’s strategy to diversify into new markets continues apace. During the first nine months of the year, 18% of LGIM gross sales were to non-pensions clients (Q309: 9%) and 13% of gross sales were to international clients (Q309: 8%). LGIM’s international distribution strategy was further boosted by the launch of the first in a series of new pooled funds structured as an Open Ended Investment Company (OEIC) which meet the requirements of European institutional investors. The pipeline of new business in Europe looks strong with recent Active European Corporate Bond mandates won in Scandinavia, Germany and Holland.
Kevin Gregory, Interim CEO, LGIM commented "This is another strong new business result for LGIM, reflecting successful growth across our core businesses as well as into new markets. Our focus on providing our clients with both the service and the investment solutions they need continues to pay dividends".
Legal & General Investment Management Limited. Registered address: One Coleman Street, London EC2R 5AA. Registered in England 2091894.
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t: +44 20 3124 2096
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One Coleman Street
T: +44(0) 20 3124 2096