LGIM's assets rise despite fall in inflows

graph up downAssets managed by Legal & General Investment Management (LGIM) grew to £465 billion (€585 billion) at the end of June, a rise of 7% compared with the same time last year.

The firm's international assets – mainly from the US, Europe and the Gulf – grew particularly fast, rising 35% to account for a little less than a sixth of the UK-based firm's total.

However, the firm's net inflow of £10.4 billion in the first half of the year was £3 billion less than it gained in the first half of 2013.

LGIM, which is the largest provider of liability driven investment (LDI) in the UK, says the continued trend for UK defined pension schemes to de-risk will affect its fund flows in coming months.

“This will impact our passive equity funds backing DB schemes but will benefit our growing LDI business,” says the firm in a statement.

LGIM also hopes for growth among defined contribution pension schemes and in its property and multi-asset funds.

Including the firm's derivative overlay and the advisory assets it took on as part of its acquisition of US-based Global Index Advisors, the firm looks after £654 billion.

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