Legal & General Investment Management net inflows fell 22 per cent to £10.4bn in the first six months of the year, down from £13.4bn in the same period last year.
Assets under management grew 7 per cent to £465.1bn in the first half of the year, up from £433bn in 2013.
The inflow fall was manily driven by L&G passive funds which suffered net outflows of £8.4bn in the first half of the year.
LGIM attributes circa £5bn of outflows due to redemptions by three large clients who are either bringing funds in-house or funding bulk annuity transactions.
L&G group chief executive Nigel Wilson says: “These are strong financial results with dividends once again growing over 20 per cent and a return on equity of 17.6 per cent. We continue to deliver good growth on all other key metrics. We are successfully executing our strategy connecting our five long-term macroeconomic and demographic trends to real business outcomes.
“Strong business performance across a well-diversified range of insurance, savings and investment markets underpins consistent earnings quality and dividend growth and enables us to respond positively to the ever changing political and regulatory landscape.”