UK - Legal & General (L&G) Investment Management enjoyed a 4% increase in new business in 2001, bringing in £13.2bn in mandates, a result L&G chief executive David Prosser hailed as "remarkable".
During the past year L&G picked up a total of 231 new pension fund clients, with largest mandates coming from local authority schemes. Since January 1998, the firm has added over £1bn of new UK pension fund business a month, a track record it believes is “unequalled” by any other firm.
The majority of L&G’s new institutional business came from pooled funds, which totalled £10.61bn, down slightly from the 2000 result of £11.04bn. Segregated fund business saw a dramatic increase, up to £2.57bn in 2001 compared to £327m in the previous year.
The performance of L&G’s segregated fund business performed especially well in the fourth quarter, with nearly £1.4bn in mandates won. Pooled funds brought in just over £2.8bn during the same period.
Despite falling equity values over the year, L&G’s funds under management exceeded £116bn, compared to £114bn in 2000. L&G’s bulk annuities business saw a tremendous increase in growth, up 187% from the year before. New bulk annuities stood at £741m, compared to £258m the year before.
The firm also picked up 14% of the stakeholder market, a figure L&G believes places it in a strong position. The firm boasts that more than 43,000 employers - covering 1.5m potential scheme members - have picked L&G as stakeholder provider.
By Geoffrey Ho
The Pensions Administration Standards Association's Margaret Snowdon won the coveted Pensions Woman of the Year award. She tells Stephanie Baxter about lessons she has learned along the way.
Defined benefit (DB) schemes are set to shorn themselves of over £300bn of liabilities between 2019 and 2021 as they continue to mature, Mercer predicts.
This week's top stories include the Competition and Markets Authority issuing its final report for the investigation into investment consultants, and The Pensions Regulator launching its first fraud prosecution.
Many investment portfolios that rely heavily on stock-bond diversification to manage risks may not be protected against inflation surprises. Real assets offer a solution.