Legal & General Investment Management 2008 Financial Results - Another excellent year

Legal & General Investment Management 2008 Financial Results - Another excellent year

Legal & General Investment Management (LGIM) had an outstanding year in 2008, despite the difficult economic conditions.

Gross new business inflows of £30.9bn are testimony to the range and nature of LGIM’s products, low-risk performance philosophy and award-winning client service. Year-end total funds under management was £264.2bn (£296.6bn in 2007). We remained, by some distance, the UK’s largest manager of UK sourced pension assets.

The pre-tax operating profit of the business also increased to £172m (from £147m in 2007).

Peter Chambers, Chief Executive Officer (LGIM) said, “2008 was a very difficult year for the economy as a whole and especially for many fund managers. Against this complex backdrop, LGIM has thrived, both increasing profitability and expanding our client base.

“Our core index-tracking business remains a powerful franchise, in both the institutional and retail markets. This is increasingly complemented by sales of active equity and active fixed income funds, as well as market-leading risk management solutions, such as Liability Driven Investment (LDI) mandates. We remain highly responsive to client demand and will continue to develop new solutions to help UK and overseas clients manage risk, particularly during these turbulent times.

“In the retail market, we have altered the focus of our actively managed funds to a range concentrated on delivering significant alpha capability. The benefits of this strategy have started to feed through in both improved performance and client demand.

“Our US office, LGIM America, received SEC approval earlier this year, which allows us to bring our active fixed income and LDI propositions to a wider audience.

“Many commentators are saying that 2009 will be another tough year for the economy. However, I believe that it will be a year of great opportunity and we are well placed to take advantage. Our approach continues to be compelling: providing the market with value for money, easily accessible, straightforward and relevant products. I am looking forward with confidence that 2009 will be another successful year.”

Comments are closed.