Wealth Manager - the site for professional investment managers

Register to get unlimited access to Citywire’s fund manager database. Registration is free and only takes a minute.

L&G raises divi by 22% on record results

L&G raises divi by 22% on record results

Legal & General has raised its dividend by 22% after unveiling bumper annual results that saw pre-tax profits surge by 10% to £1.1 billion.

The group’s fund arm, Legal & General Investment Management (LGIM), attracted net inflows of £9.3 billion, which helped push total assets under management to £450 billion at the end of 2013, up 11% from £406 billion year-on-year.

LGIM’s operating profit rose by 12% to £304 million. The group said LGIM America’s liability driven investment and active fixed income capabilities were key drivers of asset flows, which it expects to continue into this year. L&G bought Global Index Advisors last month, which added $15.6 billion of passive assets.

‘We expect LGIM’s international net inflows to accelerate, and over time for maturing UK DB net outflows to be offset by growth in retail and DC,’ the group said.

L&G group chief executive Nigel Wilson said: ‘Disciplined investment in growth, effective management and rigorous cost control has enabled us to more than triple net cash since the financial crisis: it has grown from £320 million in 2008 to £1.002 billion in 2013. We have grown dividends again by over 20% and due to the strength of the business intend to move dividend cover from 1.8 towards 1.5 times over the next two years.

‘Legal & General moved up another gear in 2013, delivering record financial results and accelerating growth across all areas. Net inflows were £17 billion including £9 billion in LGIM and £8 billion into Cofunds. LGIM now has £450 billion of AUM, and Cofunds, with £64 billion of assets is the UK’s largest savings platform.’  

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.
Citywire TV
Play Dispelling the sustainable investing myths

Dispelling the sustainable investing myths

There's a bit of a buzz around sustainable investing at the moment. We speak to three wealth managers to find out what they think.

Play Inside ETFs: positioning for the Fed rate rise

Inside ETFs: positioning for the Fed rate rise

Natalie Fast discusses how investors are using ETFs to position for a rate rise with guests Irene Bauer from Twenty20  Investments and Markit's Simon Colvin.

Play Wealth Manager Retreat: video highlights

Wealth Manager Retreat: video highlights

The UK's leading wealth management talent gathered at our annual event at the Grove celebrate the best in private client portfolio management.

Wealth Manager on Twitter