LGIM AUM up 20% despite £9.8bn outflows from index funds

Anticipates further fee pressure

During the year to 31 December 2016 Legal & General Investment Management (LGIM) has seen positive flows across its main product lines and especially strong overseas sales, but its index fund range suffered outflows.

The group reported net inflows of £29.2bn (down from £37.7bn in 2015) and a 3% rise in operating profit, contributing to an overall 20% increase in assets under management. Revenues from managemenet fees were up 10% to £714m, though transactional revenues fell from £43m in 2015 to £30m at the end of last year. This was due to the decision to discontinue box profits which accounted for an extra £11m in revenue the previous year. LGIM saw particularly strong inflows from its international business, taking in £14.5bn compared to £9.5bn the previous year, with a particularly strong perfor...