Record year for Legal & General Investment Management

2006 saw record new business for Legal & General Investment Management (LGIM) with gross new inflows of £20.7bn an increase of 22% over 2005 (2005: £17.1bn).

Growth in new business combined with excellent client retention levels and strong markets drove funds under management up to £233bn an increase of 14% from the start of the year.

New business inflows continue to be dominated by flows from corporate pension schemes £18.5bn (2005: £15bn). Existing clients contributed £10.4bn (2005: £8.8bn) of the total.

New business from charities and other institutions enjoyed another excellent year with inflows of £2bn (2005: £2bn).

2006 saw significant investment in key areas of our business. LGIM set up a US fund management office in Chicago to provide US fixed income fund management expertise to complement and augment its UK based team. In addition, LGIM’s Structured Solutions team was further strengthened with the appointment of three senior investment professionals and the team is now generally recognised as one of the leaders in the field of Liability Driven Investments. We will continue to invest in talent across our business to help achieve our strategy.

Peter Chambers, Chief Executive Legal & General Investment Management said, “2006 has been a tremendously successful year as we have increased our new business inflows and moved forward significantly on our strategic ambitions.

“We have set high standards and we look forward to exceeding these in 2007.”