L&G Asset Management’s AUM has fallen 2% to £1.1trn this year, with total net outflows of £48.5bn as the business reshapes.
Outflows were due to UK DB clients according to L&G, who “continue to adjust their portfolios in response to improved funding ratios and execute some one-off tactical asset allocation rebalances”.
Operating profit for the business fell to £401m for 2024 from £448m last year, which the company said is due to investing to “enable growth”.
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Despite the decrease in AUM, L&G Asset Management grew their revenue by 4% to £967m as the company focuses higher margin products. The company plans to continue expansion of its private markets platform, which has now reached £57bn AUM, aiming to hit £85bn by 2028.
The private markets business also launched a group of private markets funds in 2024, raising £1.2bn in external committed capital.
The L&G Asset Management arm was formed in 2024 through the combination of LGIM and L&G Capital.
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“Investment performance has been strong across our range of matching, tracking and active strategies. For our UK-managed Active Fixed Income strategies, 76 % of strategies outperformed over one year, and 79% over three years,” L&G stated.
“US-managed active fixed income strategies also performed well with 93% of strategies outperforming over one year and 84% over three years. Multi-asset strategies outperformed by 50% over one year and three years.”
This story was written by our sister title, Portfolio Adviser
