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.
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