L&G Investment Management records small rise in institutional hedge fund AUM in first half

Date: Thursday, August 5, 2010
Author: Charles Gubert, Hedge Funds Review

Legal & General Investment Management (LGIM) institutional hedge fund assets under management (AUM) increased by 3% in the first half of the year, rising from £97 million to £100 million.

LGIM also recorded a 2% increase in its assets under management (AUM) to total £320 billion.

This represented an increase in AUM from £315 billion at December 31, 2009 and came despite equity markets declining in recent months.

First-half operating profits increased 32% over the same period in 2009 to £97.8 million.

Gross new fund management mandates increased by 49% to £21.2 billion compared with £14.2 billion in the first half of 2009.

Over 30% of the new business came from non-index mandates and the majority was generated from LGIM's structured solutions area. LGIM said this increase reflected its ability to provide pension fund clients with tailored investment solutions.

LGIM is increasingly focusing on liability-driven investments (LDI) and risk management strategies for pension funds. The company said it expected a greater share of new business to be in active fixed income and LDI.

LGIM continued to expand its international reach with 15% of new business coming from non-UK clients, up from 8% in the first half of 2009.

Net new business for this period was £8.3 billion.