LGIM sees UK retail flows hit £1.4bn

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Legal & General Investment Management’s UK retail business saw an increase in net inflows in 2016 despite the “challenging year for active managers”.

Net sales increased from £1.2bn in 2015 to £1.4bn.

LGIM ranked third for UK net retail sales in 2016, according to the Pridham report. However, total net flows dropped from £33.3bn in 2015 to £31.2bn in 2016. External net flows also fell from £37.7bn in 2015 to £29.2bn.

In the firm’s Solutions business – which includes multi-asset solutions – net sales were positive but flat at £34.7bn, with sales driven by interest from pension schemes.

Total International assets under management increased by 45 per cent to £177.4bn, up from £122.4bn, which the firm attributed to due to positive flows, recovering equity markets, the weak pound and strong performance in the US business.

LGIM’s asset management profit, excluding the one-off adjustment for discontinuing box profits, was up 7 per cent, while operating profit was up 3 per cent at £366m, up from £355m.

The firm admits the LGIM Real Assets arm “was adversely impacted by the slowdown in the property market as a result of the EU referendum” but saw net inflows in Q4, with total AUM of £19.6bn, up from £18.3bn.

LGIM chief executive Mark Zinkula says: “We have delivered robust results in a challenging environment and continue to successfully expand our business. The fact that we once again delivered growth across all distribution channels and regions in 2016 was a significant achievement.

“We are building on our leading position in the UK defined benefit market, but our growth is increasingly coming from the DC and retail sectors and our target international markets.”