Legal & General Investment Management sees LDI gains

Net flows at Legal & General Investment Management (LGIM) have dropped this year, though the firm has managed to increase total assets unde

r management (AuM) by £82 billion (€105 billion) due to still positive net new money and market movements.

In the nine months to the end of September LGIM saw a 61% drop in total net flows of new money, including a 49% drop in international flows, compared to the same period last year.

But flows remained positive at £8 billion, including £7.2 billion for new international money. The flows and market movements mean total AuM increased by 14% to £676.3 billion, or €865 billion.

Reporting its Q3 results today, LGIM saw outflows in its UK index business, but says these were offset by demand for liability-driven investment (LDI) strategies.

Year-to-date outflows from the firm’s large index business were £11.8 billion. The same period last year saw £2.4 billion of inflows.

The index outflows reflect a de-risking trend in UK defined benefit pension schemes, the fund manager says, which benefited LGIM’s LDI business. LDI mandates picked up £18.4 billion in the year-to-date period, representing a 22% increase over the same period last year to stand at £273 billion.

LGIM says its has a 20% market share of the UK DB market and 40% share of the UK LDI market.

However, the firm also reports a fall in institutional index wins from international investors. The manager, owned by insurance company Legal & General Group, has been increasing its overall international assets in recent years, which thanks to the net gain in new money this year, now stand at £86.5 billion. This is a 45% increase over year-to-date Q3 2013, and a trebling over the last four years.

©2014 funds europe

HAVE YOU READ?

THOUGHT LEADERSHIP

Innovative US companies are providing some of the solutions to the climate crisis and transition to a more sustainable economy. We see potential opportunities in areas including renewable energy and…
FIND OUT MORE
This white paper outlines key challenges impeding the growth of private markets and explores how technological innovation can provide solutions to unlock access to private market funds for a growing…
DOWNLOAD NOW

IRELAND SPOTLIGHT

Visit our dedicated Ireland channel for all the latest news and analysis on the country's investment industry.
READ MORE

PRIVATE MARKETS FUND ADMIN REPORT

Private_Markets_Fund_Admin_Report

LATEST PODCAST