Legal & General Investment Management (LGIM) continues to expand internationally, delivering healthy new business results during the third quarter.
02 November 2011
New business inflows remain strong for Legal & General Investment Management (LGIM) despite an investment environment shaped by uncertainty and extreme financial market volatility. LGIM's third quarter results were excellent, with gross new business amounting to £7.4bn, 41% higher than the corresponding period last year (Q3 2010 £5.2bn). Net new funds were up by £0.6bn compared to the same quarter last year bringing total net new funds to £3.6bn in the year-to-date (YTD).
LGIM's Chief Executive Officer, Mark Zinkula, said: "This is a great result for LGIM. I am particularly pleased that we have been able to meet the needs of our investors through the challenging market backdrop, while also successfully developing into a more international organisation."
Inflows continue to be strong within Liability Driven Investment (LDI) solutions, where LGIM is working closely with pension schemes and their consultants to establish their optimal risk management framework. We have seen clients embrace a wider range of derivative instruments to help address the impact of equity market volatility, interest rate risk and the potential for longer term inflation. LDI accounted for £4.7bn of YTD gross inflows and now brings LGIM's LDI funds under management (FUM) to £52bn, or 15% of total FUM.
Mark Zinkula commented: "Our LDI business is expanding, with rapid growth now also being experienced in the US. We continue to work closely with the broader L&G Group to expand our presence in the growing Defined Contribution (DC) and retail markets and this is particularly important as the UK transitions from a Defined Benefit (DB) to DC system."
New business growth has been underpinned by a focused business strategy. This has enabled LGIM to offer a greater range of investment opportunities and risk management solutions to existing clients as well as bring proven capabilities to new clients in new markets. LGIM's global growth strategy continues at a solid pace, with an increasing proportion of new business now derived from overseas clients. YTD 14%, or £3.5bn of gross fund flows were from outside the UK, up from 10% last year.
"To sustain the tremendous growth we have experienced to date, we will continue to offer our clients and investors the best possible value solutions for their investment needs. Our strategic aim to expand internationally has seen us take strides to offer our existing capabilities in new markets, with our US business (operating out of Chicago) experiencing great momentum since its establishment in 2006 and more recent new business wins coming from Europe and the Middle East. Crucially, we remain focused on offering both high quality and exceptional value products in all of the markets in which we operate, backed by excellent customer service". Mark stated.
For more information please contact:
PR Manager Investments
t: +44 (0) 2031 242096
PR Manager, L&G Investments
t: +44 (0) 2031 242092
About Legal & General
Legal & General Investment Management Limited.
One Coleman Street
London EC2R 5AA.
Registered in England 2091894.
t: +44(0) 20 3124 2096