L&G Half-year Report 2010 - Part 6

New Business

Page 93

6.01

Investment management new business

Full year

30.06.10

30.06.09

31.12.09

£m

£m

£m

Managed pension funds1

Pooled funds

12,320

11,788

25,606

Segregated funds

5,045

1,247

3,381

Total managed funds

17,365

13,035

28,987

Other funds2

4,577

2,102

4,297

Total new funds

21,942

15,137

33,284

Attributable to:

Legal & General Investment Management

21,158

14,182

31,485

Legal & General Retail Investments

784

955

1,799

6.02

Investment management new business quarterly progression

3 months to

3 months to

3 months to

3 months to

3 months to

3 months to

30.06.10

31.03.10

31.12.09

30.09.09

30.06.09

31.03.09

£m

£m

£m

£m

£m

£m

Managed pension funds1

Pooled funds

4,936

7,384

6,742

7,076

5,763

6,025

Segregated funds

4,777

268

1,344

790

533

714

Total managed funds

9,713

7,652

8,086

7,866

6,296

6,739

Other funds2

981

3,596

869

1,326

1,382

720

Total new funds

10,694

11,248

8,955

9,192

7,678

7,459

Attributable to:

Legal & General Investment Management

10,305

10,853

8,450

8,853

7,166

7,016

Legal & General Retail Investments

389

395

505

339

512

443

1. New monies from pension fund clients of Legal & General Assurance (Pensions Management) exclude £2.3bn (H109: £2.4bn; FY09: £7.9bn) held through the year on a temporary basis, generally as part of portfolio reconstructions.

2. Includes segregated property, property partnerships, private equity partnerships and institutional clients funds managed by Legal & General Investment Management and institutional investments in unit trust funds managed by Legal & General Retail Investments.

6.03

Legal & General Investment Management new business by investment approach

30.06.10

30.06.09

31.12.09

%

%

%

Indexed equities

43

52

49

Indexed bonds (including index linked funds and cash)

27

27

27

Active bonds (including index linked funds and cash)

9

16

14

Structured solutions

20

5

10

Property

1

-

-

Total

100

100

100

New Business

Page 94

6.04

Funds under management

At 30.06.10

At 30.06.09

At 31.12.09

£m

£m

£m

Total investments

320,014

270,899

315,101

Represented by

Index tracking funds:

- UK equities

61,376

55,595

68,971

- Overseas equities

71,390

56,715

73,858

- Fixed interest

37,971

34,798

36,534

- Index linked

30,642

31,514

28,245

- Cash/deposits

628

1,939

695

Total index tracking funds

202,007

180,561

208,303

Actively managed funds

80,408

67,864

76,860

Structured solutions

37,599

22,474

29,938

320,014

270,899

315,101

By investment approach

Index equities

132,766

112,310

142,828

Index bonds (including index linked funds and cash)

69,241

68,252

65,475

Active bonds (including index linked funds and cash)

64,507

54,453

61,167

Structured solutions

37,599

22,474

29,938

Active equities

8,057

7,290

8,788

Property

7,656

5,899

6,675

Private equity

188

221

230

320,014

270,899

315,101

By source of business

Institutional funds under management1:

- Managed pension funds pooled

184,495

163,875

190,792

- Structured solutions

37,599

22,474

29,938

- Other

14,368

9,055

11,261

- Managed pension funds segregated

3,630

6,378

4,330

Total institutional funds under management

240,092

201,782

236,321

UK businesses (life and general insurance funds)

66,206

58,198

65,106

UK businesses (unit trusts - excluding life fund investment)

13,716

10,919

13,674

320,014

270,899

315,101

1. Excludes institutional investments in unit trust funds.

Funds under management of £11bn (30 June 2009: £16bn; 31 December 2009: £19bn) derived from retail investments and additional funds managed overseas, take total worldwide funds under management to £331bn (30 June 2009: £287bn; 31 December 2009: £334bn).

New Business

Page 95

6.05

Worldwide new business

Annual

Single

APE

Annual

Single

APE

APE

premiums

premiums

premiums

premiums

Full year

30.06.10

30.06.10

30.06.10

30.06.09

30.06.09

30.06.09

31.12.09

£m

£m

£m

£m

£m

£m

£m

Protection

 - Individual

57

-

57

60

-

60

123

 - Group

28

-

28

30

-

30

57

85

-

85

90

-

90

180

Annuities

 - Individual (non profit)

-

601

60

-

583

58

96

 - Individual (with-profits)

-

10

1

-

7

1

2

 - Bulk purchase

-

447

45

-

738

74

88

-

1,058

106

-

1,328

133

186

Total Risk

85

1,058

191

90

1,328

223

366

Core retail investments1

 - Unit trusts

4

2,055

210

5

1,061

111

269

 - ISAs

11

860

97

13

270

40

106

Non profit savings

 - Unit linked bonds

-

443

44

-

319

32

68

 - Individual pensions

114

678

181

77

699

147

272

 - DWP rebates

-

6

1

-

4

-

1

With-profits savings

 - Bonds

-

197

20

-

305

31

55

 - Individual pensions

40

78

48

67

123

79

123

 - DWP rebates

-

74

7

-

65

7

12

 - Group pensions

1

2

1

1

-

1

1

Total Savings

170

4,393

609

163

2,846

448

907

 - USA

22

-

22

29

-

29

49

 - Netherlands

3

66

10

4

86

13

22

 - France

20

123

32

19

110

30

38

 - India (26% share)

8

2

8

-

-

-

-

 - Egypt (55% share)

5

-

5

-

-

-

-

58

191

77

52

196

72

109

France retail investment business

-

40

4

-

32

3

6

Total International

58

231

81

52

228

75

115

Total worldwide new business

313

5,682

881

305

4,402

746

1,388

1. Core retail investments excludes institutional investments in unit trust funds which are disclosed as part of institutional fund management new business (see Note 6.01).

New Business

Page 96

6.06

Worldwide new business APE quarterly progression

3 months to

3 months to

3 months to

3 months to

3 months to

3 months to

30.06.10

31.03.10

31.12.09

30.09.09

30.06.09

31.03.09

£m

£m

£m

£m

£m

£m

Protection

 - Individual

29

28

31

32

30

30

 - Group

14

14

16

11

16

14

43

42

47

43

46

44

Annuities

 - Individual (non profit)

33

27

16

22

25

33

 - Individual (with-profits)

1

-

1

-

1

-

 - Bulk purchase

30

15

9

5

24

50

64

42

26

27

50

83

Total Risk

107

84

73

70

96

127

Core retail investments1

 - Unit trusts

104

106

85

73

65

46

 - ISAs

59

38

32

34

26

14

Non profit savings

 - Unit linked bonds

26

18

23

13

14

18

 - Individual pensions

113

68

60

65

71

76

 - DWP rebates

1

-

-

1

-

-

With-profits savings

 - Bonds

11

9

11

13

18

13

 - Individual pensions

21

27

22