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L&G investment arm approaches £1trn mark as inflows more than double

Legal and General Investment Management’s assets under management are approaching £1trn as net inflows more than double in H1 compared to the same period last year.

Today’s results say the business is on track to deal with challenges from Brexit negotiations, Mifid II and the FCA asset management market study.

Assets under management increased 13 per cent to £951.1bn with external net inflows more than doubling to £21.7bn, compared to £9.6bn in H1 2016.

The asset manager notes it is gaining market share in retail markets ranking first for UK net sales in Q2, according to the Pridham report. Total inflows for the first six months were £1.7bn, compared to £700m for the same period last year.

Index funds suffered net outflows overall totaling £4.3bn, largely from UK defined benefit clients switching to other products, but saw net inflows from retail clients.

LGIM chief executive Mark Zinkula says positive asset flows were across almost all channels, regions and investment areas.

“In addition to being the largest manager of DB and defined contribution assets in the UK, our retail business continues to gain market share, ranking first in net sales during the second quarter.”

Zinkula says clients are increasingly recognising value in the role LGIM plays in corporate governance and sustainability topics. “Looking to the future, we will continue to use our scale and influence as an investor to bring about positive change in the companies and markets in which we invest.”

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