The report, published 5 August, showed LGIM’s total AUM climb 12% from £640bn last year to £714.6bn as at 30 June 2015.
Propelled largely by the firm’s Solutions offering, which despite undergoing a year-on-year net flow decrease still saw £12.3bn in new money, the AUM rise was also supported by inflows in the property and active fixed income (AFI) capabilities.
“It is anticipated that clients’ demand for de-risking strategies will continue and LGIM is well positioned to benefit from this trend,” said a statement from L&G Group, adding that the firm intends to invest £15bn across the business in the medium term.
LGIM’s property business saw H1 net inflows of £600m take total AUM to £15.8bn – up 23.4% on a year previous – while its AFI arm grew by £2.3bn in the same time-frame.
An international AUM rise of 67% to £115.8bn in the past 12 months, combined with external AUM net flows jumping 67% to £13.8bn in the same period, contributed to operating profit of £176m – up 18.1% year-on-year.
The firm’s asset management revenue also experienced growth, rising 12% from £309bn and £347bn year-on-year, though advisory assets dropped 18% from £13.7bn to £11.3bn in the same time-frame.
LGIM’s cost/income ratio also fell incrementally to 48%, compared to 49% a year previously, while its workplace savings H1 operating loss was £3bn – though this was significantly lower than the £10bn recorded in the same period in 2014.
