LGIM retail inflows more than double to £700m

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Legal and General Investment Management’s retail business saw external net inflows more than double to £700m in the first half compared to £300m in H1 2015.

LGIM noted it was second in terms of market share for net retail sales in Q2 2016, with AUM over the entire first half increasing to £21.4bn compared to £18.9bn in H1 2015.

Despite significant uncertainty in the property sector in the period following Brexit, LGIM saw £100m external net inflows to its real assets business. It was one of the few major funds in the sector that did not suspend trading due to redemptions.

LGIM’s total AUM increased 18 per cent to £841.5bn from £714.6bn a year ago, which the report attributes to a “significant appreciation in asset values towards the end of June”. The average monthly closing AUM for the six months was £784.1bn, compared to £715.bbn for the same period last year.

However, operating profit fell by 3 per cent to £171m, compared to £176m for H1 2015.

Fewer property transactions hit transactional revenues, which were £16m compared to £23m for H1 2015. However, management fee revenues were up 4 per cent to £337m.

Chief executive Nigel Wilson said: “There are many different views of the outlook for economic growth, the state of financial markets and political uncertainty.

“We reflect this in our approach to risk management. While we cannot be immune to this uncertainty, we remain confident that we will continue to deliver attractive returns for shareholders, great value to customers and better outcomes for society.

“Our five long-term growth drivers, ageing populations, globalisation of asset markets, creating real assets, welfare reform and digital remain unaffected and will continue to provide many growth opportunities.”