Legal and General Investment Management’s (LGIM) net flows more than doubled last year, taking total assets under management to £1.2trn, driven by a significant uptick in international business.
The firm’s full-year results published on Wednesday showed external net flows of £86.4bn in 2019, up from £42.6bn in 2018.
The dramatic increase was largely down to a £37bn passive mandate with the Japan Government Pension Investment Fund, the largest retirement fund in the world.
This meant total flows from Asia, including Japan, were £39.7bn in 2019, compared with £3bn in 2018. Its European excluding UK business saw net flows of £11.6bn, compared with a £1.2bn outflow the year before.
International net flows tripled to £59.2bn, from £19.6bn in 2018. This took international AUM to £370bn – 31% of LGIM’s total AUM.
US, Asia and European retail focus
LGIM said it plans to grow its international AUM “at pace”, with a particular focus on the US, Asia and European retail and wholesale markets.
LGIM’s retail business experienced net flows of £4bn, up from £2.8bn the year before “despite challenging market conditions”. The results statement said there was a strong demand for multi-asset and index products in 2019.
The Pridham Report for Q3 2019 put LGIM as the second-best manager for net retail sales in the quarter behind Blackrock, with £886.1m.
Retail AUM, including personal investing, increased to £38.8bn compared with £30.6bn in 2018. It said 70% of the firm’s ETFs experienced net inflows in 2019, representing £400m.
AUM hits £1.2trn
Overall, LGIM experienced an 18% growth in AUM, taking the total to £1.2trn, compared with £1trn in 2018. Revenue increased 8% to £912m and management fees increased by 8% to £889m.
It is the first set of annual results under chief executive Michelle Scrimgeour (pictured), who joined LGIM in June.
Scrimgeour said: “2019 continued to be another important year for the business. We expanded and diversified across channels, regions and capabilities and have been building on our credentials as a responsible investor to lead the asset management industry in tackling the environmental and social challenges arising from a rapidly changing world.”
