LGIM doubles inflows and targets passive expansion

Legal & General Investment Management (LGIM) says it wants to become a “major player” in passive fund provision.

In its results statement for the first half of 2013 the fund manager, part of insurance giant Legal & General, said it had seen its net inflows double compared with the first half of last year, from £4bn to £8bn, including significant institutional pensions business.

The group stated: “We expect the impact of transparent charging from the implementation of the RDR to continue to drive demand for our low cost retail passive funds and aim to become a major player in this segment.”

Article continues after advert

LGIM currently offers 18 passive equity and bond funds to retail investors, with more than £13bn under management.

LGIM’s assets under management increased by 6.7 per cent to £433bn when compared with the first half of 2012, while its operating profit grew by 13.4 per cent.

According to L&G’s results, its savings division - which now includes the Cofunds platform - made an operating profit of £62m, down from £72m in the first six months of last year. The move to take full ownership of Cofunds increased the savings arm’s assets under management by 58.6 per cent to £111bn.