Legal & General delivers strong first-half results

Impressive performance from Legal & General Investment Management’s active managers offset outflows from passive strategies to deliver a strong set of H1 results, while its fixed income funds proved popular.

LGIM’s net inflows were £4.0bn, a jump of 33% compared to H1 2011. Operating profit increased to £119m from last year’s £117m, while assets under management grew 3% to £381bn.

Revenue was up 7% to £219 (H1 2011: £205m). LGIM increased investment in the business to support future expansion across product lines and geographies.

LGIM said its strategy of diversification contributed to the strength of the first-half results. International AUM increased by 17% to £21.5bn; LDI gross inflows were up 22% to £3.3bn (H1 2011: £2.7bn); and fixed income gross inflows were up 67% to £3.5bn, (H1 2011: £2.1bn).

Revenue from LGIM’s index business, grew from £224.2bn last year to £227bn.  LGIM said the sector “remains an area of innovation, with new funds and services launched to meet the evolving needs of clients.”

Mark Zinkula, LGIM chief executive (pictured), said: “We have increased revenue, profit and AUM during a period of significant economic uncertainty as we continue to focus on delivering outstanding results for our clients. Our international businesses are gathering momentum and our index, active and LDI strategies are well placed in an environment where investors are increasingly risk aware.”

Zinkula, who was appointed CEO in March last year, was previously head of Legal & General’s American operations.

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