UK – Legal & General says the operating profit of its institutional fund management arm LGIM fell to 80 million pounds (119.7 million euros) in 2003 from 92 million pounds in 2002, a decline of 13%.

Pre-tax profit at Legal & General Investment Management rose to 96 million pounds from 2002’s 44 million pounds “benefiting from the impact of stronger investment markets relative to embedded value assumptions”.

It said the new business contribution from managed pension funds fell due to “lower levels of new business” to 31 million pounds from 32 million pounds.

LGIM won 13.1 billion pounds of new funds in the year, down from 2002’s 14 billion pounds. LGIM’s total funds under management rose 18% to 135 billion pounds.

Fund management revenue was up 10% - “benefiting from the upturn in the market, new business growth, and a small increase in average pooled fund fee rates”. Client numbers rose nine percent to 2,425.

Profits at private equity arm Legal & General Ventures fell to three million pounds from five million pounds. Its real estate fund management subsidiary now has 1.1 billion pounds under management while profits were up to three million pounds from two million pounds.

L&G’s overall operating profit rose nine percent to 759 million pounds.


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