LGIM delivers strong growth in profits and assets under management despite turbulent markets.
14 March 2012
Legal & General Investment Management (LGIM) had another excellent year in 2011. Despite a turbulent market backdrop, profits increased by 14% to £234m (FY 2010: £206m) and assets under management (AUM) ended the year 5% higher at £371bn (2010: £354bn). The results demonstrate the success of LGIM's strategy to consistently deliver investment solutions designed to meet clients' needs.
LGIM's index business focused on continuing to deliver consistent index tracking performance and excellent customer service. This resulted in sustained, strong gross new business inflows of £22.2bn. This included a 39% increase in gross DC inflows to the index business. LGIM's total DC assets grew 11% to £21.3bn (2010: £19.2bn)
Market turbulence in 2011 continued to drive demand from pension schemes looking to de-risk. LGIM's focus on delivering innovative investment solutions saw its Liability Driven Investment (LDI) business well placed to benefit from this trend. Worldwide LDI assets grew 43% ending the year with £58.4bn of AUM (2010: £40.8bn).
Despite market volatility, LGIM has been able to continue to deliver strong performance for its clients across the major credit asset classes. The consistent performance of its fixed income team is increasingly recognised by clients and consultants and has seen LGIM rewarded with new mandates. This resulted in a 37% increase in new business to £4.6bn and a 9% increase in active fixed income AUM to £72.4bn (2010: £66.6bn).
LGIM's strategy to grow its international business has progressed well and has resulted in mandate wins in the US, Middle East and Europe contributing to a 30% increase in AUM from international clients to £18.3bn (2010: £14.1bn).
LGIM also saw significant growth in its property business, Legal & General Property (LGP). LGP more than doubled its profits while maintaining strong investment fund performance and increasing its international client base. LGP remains one of the UK's largest property fund managers.
Mark Zinkula, LGIM Chief Executive Officer, said: "2011 was an excellent year with all aspects of our business focusing on delivering outstanding results for our clients. We have expanded our global footprint and range of products and I am confident that our growth in international markets will continue. LGIM is well placed to meet the challenges that 2012 will bring. We remain firmly focused on continuing to deliver innovative strategies, consistent performance and exceptional service."
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Notes to editors
Legal & General Investment Management
Legal & General Investment Management (LGIM) is one of Europe's largest institutional asset managers and a major global investor. LGIM manages £371 billion in assets for more than 3,000 clients.* 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 a full spectrum of asset classes including equities, fixed income, commercial property and cash. Our capabilities range from index-tracking and active strategies to liquidity management and liability-based risk management solutions.
*As at 31 December 2011
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