Legal & General Investment Management (LGIM) delivered strong results during 2009. Our business continued to grow profitability and expand assets under management despite significant uncertainty surrounding the economic recovery and heightened volatility in financial markets.
Gross new business inflows for the year were £31.5bn (compared with £30.9bn in 2008) and assets under management at year-end rose to £315.1bn (from £264.2bn at the end of 2008).
New business growth was particularly strong from our Liability Driven Investment (LDI) business, driven by increased pension scheme de-risking activity. Assets under management in this area grew to £29.9bn, representing a 31% increase from the previous year-end (£22.8bn). Active Fixed Income assets also increased significantly to £56.3bn (£44.7bn at the end of 2008). Our Index business, a traditional area of strength, also delivered excellent growth.
LGIM also had significant success during the year from its US office, where initial efforts to market both Active Fixed Income and LDI products have already won new clients.
In the retail market, actively managed funds continue to deliver strong returns and we have had some outstanding individual fund performances.
Pre-tax operating profit was £172m, matching the result seen in 2008 (£172m).
Peter Chambers, Chief Executive Officer (LGIM) said: “2009 was a very challenging year for the economy as a whole, but I am pleased to say that LGIM thrived. Our focus on delivering the right set of products and consistently high quality service continues to be appreciated by existing and new clients alike.
The outlook remains challenging, but I am confident that LGIM is very well positioned to continue to build on the successes of the past and that 2010 will be another strong year."
ENDS.