L&G eyes 'major player' status in passives as profits rise

Legal & General (L&G) has signalled its intention to become a "major player" in delivering low cost passive investment solutions to UK retail clients as the group saw profits rise 13% in the first half of the year.

The company said it expects growth in retail passive funds of between 10% and 20% per annum over the next five years due to greater charging transparency following the implementation of new rules set out by the Retail Distribution Review (RDR). Sales of the group's passive funds increased by 65% to £1.2bn in the first six months of the year against the same period in 2012, while gross sales of its unit trusts, including its active funds, grew to £1.7bn from £1.2bn. Across the group as a whole, profit before tax in H1 was £592m, up 13% on the £523m recorded in the same period last year...