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Money Management

Legal & General Investment Management’s AUM rises 13% over year on strong international business

Legal & General Investment Management's assets under management grew 6.4% over the six months and 13% over the year ended June 30 to 951.1 billion ($1.23 trillion).

A financial update by the money manager's parent company Legal & General Group said the firm recorded external net inflows of 21.7 billion for the six months, compared with 19.5 billion in net inflows for the six months ended Dec. 31 and 9.6 billion in net inflows for the six months ended June 30, 2016.

International growth bolstered total assets under management, up 11.8% for the six-month period and up 30.5% for the year, to total 198.3 billion. Net inflows across the international business totaled 17.9 billion for the first six months of 2017, compared with 7.8 billion for the six months ended Dec. 31 and 6.7 billion for the comparable period ended June 30, 2016.

Growth in the international business was predominantly driven by the U.S. business, with net inflows totaling 8.6 billion across solutions, active fixed-income and index strategies. Europe-based business added 6.6 billion in net inflows, Gulf-based net inflows were 2.5 billion and 300 million in net inflows were recorded in Asia.

LGIM recorded 2.1 billion of net inflows in U.K. institutional business. Defined contribution business attracted net inflows of 1.7 billion for the six months ended June 30, compared with 1.2 billion for the six months ended Dec. 31 and 800 million for the six months ended June 30, 2016.

Defined benefit business added 400 million in net inflows for the first-half 2017, compared with 9.8 billion for the six months ended Dec. 31 and 1.4 billion for the first six months of 2016.

The remaining inflows were in U.K. retail strategies.

"We are experiencing increasing momentum in all of our target international markets, with record net flows from international clients," said Mark Zinkula, CEO at LGIM, in a statement accompanying the update. "Looking to the future, we will continue to use our scale and influence as an investor to bring about positive change in the companies and markets in which we invest. Our clients are increasingly recognizing and valuing the role LGIM is playing across a range of corporate governance and sustainability topics."