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Money Management

Legal & General assets rise 3% in 2018 as international flows surge

Legal & General Investment Management's assets under management grew 3% over the 12 months ended Dec. 31 to 1.015 trillion ($1.34 trillion) despite volatility within financial markets during the final three months of the year.

Legal & General Group, the money manager's parent company, recorded external net inflows of 42.6 billion in the 12 months ended Dec. 31, compared with 43.5 billion in net inflows for 12 months ended Dec. 31, 2017, a financial update Wednesday said.

AUM from international clients was up 13% for the 12-month period to 258 billion.

Net inflows across the international business totaled 19.6 billion for the 12 months to Dec. 31, compared with 33 billion for the 12 months ended Dec. 31, 2017.

In the U.S., LGIM saw net inflows of $15.2 billion, or a 2% increase, in assets under management to $192 billion from a year earlier. In the 12-month period, LGIM also saw net inflows of 6.8 billion in the Middle East region from sovereign wealth funds and 3 billion in Asia.

LGIM recorded 15 billion of net inflows in its U.K. institutional business compared to 16 billion inflows in 2017 on U.K. defined benefit clients implementing derisking strategies by transitioning from index into a broad range of liability-driven strategies. In the second half of 2018, LGIM saw net flows of 12.1 billion from U.K. defined benefit funds.

LGIM's defined contribution business attracted net inflows of 8.4 billion for 12 months ended Dec. 31, growing 18% to 71 billion, compared with 60 billion at the end of Dec. 31, 2017.

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

"2018 was a pivotal year for the business, surpassing 1 trillion in assets under management and building on the momentum of recent years in which we have delivered consistent growth," LGIM CEO Mark Zinkula said in a news release. "International expansion has been a strategic priority, and we have made significant investments and key hires to ensure we have the right platform for long-term growth in all of our key markets."