Legal & General Investment Management (LGIM) has reported a growth in its assets under management (AuM) aided by a significant rise in inflows.
AuM at LGIM reached £1.19tn in 2019, an 18% increase from £1.01trn in 2018.
This includes £150.5bn in responsible investment strategies explicitly linked to ESG criteria.
External net flows increased almost two-fold to £86.4bn from £42.6bn.
The performance was largely driven by a £37bn Japanese passive mandate.
Total flows from Asia including Japan stood at £39.7bn in 2019 versus £3bn in the prior year.
The firm’s European business (excluding the UK) generated net flows of £11.6bn.
Growth in external and internal business supported an 8% rise in revenues to £912m from £847m.
Management fee revenue increased to £889m from £820m while transactional revenue increased to £23m from £27m.
Operating profit rose 4% year-on-year to £423m. The firm attributed the rise to “increased revenues from flows and asset values which were partially offset by LGIM’s continued investment in its growth strategy”.
Pre-tax profit increased to £414m from £403m over the period.
LGIM CEO Michelle Scrimgeour said: “We expanded and diversified across channels, regions and capabilities and have been building on our credentials as a responsible investor to lead the asset management industry in tackling the environmental and social challenges arising from a rapidly changing world.”