Overall profit for Legal & General Investment Management (LGIM) – the investment arm of the broader L&G business – stood at £149m at 31 December 2023, according to its annual results published today (6 March). While this accounts for 33.6% of L&G’s overall profit for the year, it is a 39.4% downturn compared to LGIM profits as at the end of December 2022, which stood at £229m.
Operating profit stood at £274m compared to £340m at the end of 2022, while revenue for the year came in at £889m. Some £169m of this was internal revenue, which relates to investment management services provided to other segments of the business, while external revenue – which primarily comes from fund management fees – attributed £720m.
This means revenue overall fell by 9.2% in 2023, from £979m.
Assets under management
In terms of AUM for LGIM, net flows stood at £1.16bn, compared to £1.2bn during 2022. Index funds began the year with £444.7bn in AUM and ended at £481.7bn, with positive performance attributing £55m despite modest outflows.
Actively managed funds also achieved net flows, with AUM growing by 7.7% from £156.8m to £168.9m.
Elsewhere, LGIM’s multi-asset strategies began the year with £73.9bn under management and ended with £84.3bn, due to positive net flows of £4.8bn and market performance counting for an additional £5.6bn.
The Solutions arm of the business saw £39.6m of outflows, and the shrinking of its AUM from £485.9bn to £388.8bn. Some £39.6bn of this was due to investors withdrawing money overall, while market performance further hindered the products by £29.6bn. Other movements chipped away £27.9bn.
Meanwhile real assets ticked up in AUM over the year from £34.4bn to £35.5bn, thanks in part to net inflows of £800m. Market movements attributed £300m.
Operating profit for business overall, including LGIM, Legal & General Capital (LGC), Retirement Institutional (LGRI), insurance and retail retirement stood at £1.7bn during 2023, while overall profit for the year stood at £443m compared to £782m during the previous year. This spells a 43.4% fall in total.
