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2008 |
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2007 | ||
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Total Funds Under Management |
£264bn |
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£297bn | ||
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Gross new funds* |
£33.1bn |
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£54.4bn | ||
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Fee-to-fund ratio |
10.6bps |
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10.9bps | ||
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Operating profit* |
£165m |
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£143m | ||
In 2008, LGIM attracted £30.9bn in new fund inflows (2007: £52.6bn). This is in line with our run-rate for new funds over the last 10 years, with over £1bn inflows per month. Numbers in 2007 were higher due to exceptional transfers of £20.3bn from clients of Hermes in 2007.
Client retention remained strong in 2008. Fund outflows were £20.8bn, including £1.9bn, or 12% withdrawn for the planned payment of pensions (an additional £1.7bn, or 11% of outflows related to annuity buyouts). Aggregate funds under management of £264bn were lower at the end of the year, reflecting market movements.
LGIM’s fee to fund ratio was down year-on-year, and the cost:income ratio was 49% (2007: 46%). [LGIM]’s profit on the [IFRS] basis was £172m (2007: £147m).
LGIM is strongly cash-generative. Its dividend, paid to Legal & General Group Plc in 2008, was £128m, an increase of 80% (2007: £71m).