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Money Management

LGIM sees AUM increase 4% for six months, 3.5% for 12 months

Legal & General Investment Management's assets under management grew 4% over the six months and 3.5% over the year ended June 30 to 984.8 billion ($1.28 trillion).

A financial update from Legal & General Group, the money manager's parent company, said the firm recorded external net inflows of 14.6 billion for the six-month period, compared with 21.8 billion in net inflows for the six months ended Dec. 31 and 21.7 billion in net inflows for the six months ended June 30, 2017.

AUM from international clients was up 0.6% for the six-month period and up 15.6% for the year, to 229.3 billion. Net inflows across the international business totaled 9.9 billion for the first six months of 2018, compared with 15.1 billion for the six months ended Dec. 31 and 17.9 billion for the comparable period ended June 30, 2017.

Growth in the international business was predominantly driven by U.S. clients, with net inflows totaling 8.3 billion across LGIM's solutions, active fixed-income and index strategies. Europe-based clients added 500 million in net inflows, but the Persian Gulf-based business saw new outflows of 1.4 billion, while 2.5 million in net inflows were recorded from clients in Asia.

LGIM recorded 18.6 billion of net outflows in its U.K. institutional business compared to 4.3 billion outflows in the first half of 2017 due to U.K. defined benefit clients implementing derisking strategies together with the expected loss of 6 billion of assets from one local government pension fund, the update said.

LGIM's defined contribution business attracted net inflows of 3.5 billion for the six months ended June 30, compared with 1.3 billion for the six months ended Dec. 31 and 1.7 billion for the six months ended June 30, 2017.

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

"Operating profit from divisions increased 7% to 1.1 billion, and (return on equity) was 20.3%. We have increased our dividend to 4.60 (per share), in line with our formulaic approach, an increase of 7%," said Nigel Wilson, group CEO of Legal & General Group, in a news release. "We expect to have an exceptionally busy second half of the year. We are currently actively quoting on over 20 billion of U.K. pension risk transfer deals, including over 7 billion of transactions in exclusive negotiations expected to close in the second half. LGIM's momentum continues as it expands in the United States and extends its global footprint in Asia."