LGIM annual results show focus on international expansion

LGIM has continued its focus on international expansion, announcing in its 2021 full year results that 85% of the company's external net flows came from international clients.

The firm's total external net flows reached £34.6bn in 2021, up 70% from 2020.

LGIM AUM now stands at $1.4tn (11% higher than 2020), of which £479bn (34%) is international. The firm's international AUM has risen at twice the rate of total AUM (23%) and has more than doubled over the last five years.

When exploring various regions, the firm noted that it was now Japan's 8th largest asset manager, while European AUM had reached €100bn.

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LGIM said that it delivered operating profit growth of 4% to £422m, "reflecting increased revenues, which surpassed £1bn for the first time".

The company said that revenue growth was driven by "strong external net flows and an increased focus on higher margin areas such as thematic ETFs, multi-asset and real assets". 

It added that it was particularly strong in the European thematic ETF market, with over 16% of the market share, and is currently ranked second on both AUM and net flows.

LGIM also said that across all asset classes, its actively managed funds had overperformed the benchmark, with 61% overperforming in the last year and 81% outperforming in the last three years.

It concluded that it "remains confident of achieving its ambition of growing cumulative profits in the range of 3-6%".