LGIM infrastructure flows help drive operating profit

ProfitLegal & General Investment Management (LGIM) saw an 11% increase to its operating profit in 2015 – to £355 million (€280 million) – after strong flows from the UK pensions market and also for its infrastructure business.

UK pension reforms changed the defined contribution market last year and the firm, which is part of insurer Legal & General, said net inflows into this business segment increased 13%, or by £2.9 billion, to just over £46 billion.

Real assets saw total net inflows of £1.4 billion. LGIM worked with Legal & General Capital to transact three urban regeneration schemes in Salford, Leeds and Cardiff, and is partnering with Dutch pension fund PGGM on a £600 million build-to-rent scheme.

LGIM said it remained the market leader in pensions risk-management solutions in the UK with over 40% of the liability-driven investment (LDI) market. Assets in its LDI and multi-asset solutions increased 15% last year to £338.2 billion.

Internationally, LGIM achieved net flows of £9.5 billion, with rising inflows from North America and Asia. Total international assets under management increased 7% to £122.4 billion.

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