UK - Strong de-risking demand from UK pension funds drove a 36% increase in Legal & General Asset Management's liability driven investment funds last year, results show.
The asset management firm's end of year results revealed money managed in LDI funds increased from £29.9bn ($48bn) in 2009 to £40.8bn last year, the strongest inflow of new business for the firm.
LGIM said the trend for pension de-risking was likely to drive a further increase in LDI funds.
A statement said: "In the UK, defined benefit pensions trustees are continuing to de-risk their portfolios. This is likely to lead to a decrease in equity mandates and a resulting increase in fixed income and liability driven investment mandates.
"LGIM expects to benefit from this trend as existing clients move assets into higher revenue asset classes and new clients are attracted to LGIM's LDI and fixed income businesses."
LGIM interim chief executive Kevin Gregory said: "2010 has been a strong year. We have continued to deliver well in our core areas of strength, while successfully diversifying our business internationally.
"In 2011 we will maintain our focus on delivering the right solutions for our clients and continue to deliver the consistently high quality service for which we have become known."
The business also welcomed the introduction of the National Employment Savings Trust in its competition risk outlook, saying it would offer new opportunities for growth.
"We do not see NEST or auto-enrolment as a major threat to our corporate pensions business, rather a growth opportunity," the firm said.
"The introduction of auto enrolment will stimulate growth in pension membership amongst our existing client base as well as creating further opportunities to win new business mandates in our target markets," it added.
LGIM now has £354bn of funds under management as of 2010, up from £315bn in 2009.
PTL has appointed Karein Davie as a client director in its Birmingham office.
The level of interest rate hedging increased to £29.5bn of liabilities in the second quarter as pension funds continued to de-risk, according to BMO Global Asset Management's research.
UK inflation has risen for the first time since November to 2.5% in July, up from 2.4% in June, thanks to rising fuel costs and the price of computer games.
The number of DB pension scheme trustees targeting a buyout with an insurer has increased significantly in the past five years, latest research from Willis Towers Watson shows.