At the end of September AUM were up by 1% to £347bn for the year-to-date, compared to £342bn at the same time last year.
Meanwhile, inflows into retail funds for the period were down at £514m, from £1.1bn in 2010.
This formed part of a company-wide slowdown in new fund flows, with gross new funds down to £25bn for the period, compared to £26bn at the same time a year earlier.
But LGIM said it had continued its overseas expansion with 14% (£3.5bn) of gross fund flows now from outside the UK, compared to 10% of £2.7bn in 2010.
The company’s cash position was a lot more positive, however, with nine-month cash generation up 15% to £631m, which the firm said put it well on course to beat its 2011 target of £700m.
This should put investors in the company at ease over their dividend, after L&G was among the life insurance companies to cut their pay out in 2008.
Tim Breedon, group chief executive, said: "Our strong cash generation means we can fund new business growth whilst increasing our balance sheet strength and at the same time supporting a growing dividend."
The firm added that it continued to target two times cash cover of the dividend in the medium term and as regulatory and market volatility recedes will look for the opportunity to drop this back down.
