International business compensates LGIM for outflows

Arrow up 2Legal & General Investment Management (LGIM) increased its assets under management by £10 billion (€12.4 billion) in the three months to 30 September despite outflows of £1 billionfrom UK clients since the beginning of the year.

International clients drove new business including the first mandate win from China.

The asset manager, part of the Legal & General insurance and financial services group in the UK, saw net new business of £4.6 billion in the year to 30 September, while total net inflows from international clients were £5.6 billion.

The company says the outflow of £1 billion was from UK clients and used to pay pensions.

The figures are released today in Legal & General group’s third quarter results that show “record sales” for the group in the quarter and for the year to date (YTD), says Nigel Wilson, the company’s chief executive.

“The international expansion of LGIM is accelerating, with £5.6 billion net inflows YTD from international clients,” he says.

International assets under management stood at £39 billion – up 25% over the end of 2011 – while total assets were £391 billion.

As well as China, assets also came from the US, the Gulf and Europe.

LGIM America has seen particular interest in its liability-driven investment and active fixed income products, the company says, and now has 31 external clients compared to 16 at the end of 2011.

It has also secured regulatory approval to market its index capability in the US. LGIM is one of the largest index fund providers in Europe.

The company’s results statement also says LGIM has accelerated its investment in long-term infrastructure projects. At the end of the third quarter this investment reached about £900 million in the UK.

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