REG - Legal & General Grp - L&G Full Year Results 2016 Part 2 <Origin Href="QuoteRef">LGEN.L</Origin> - Part 7
08/03/2017 07:07
- Part 7: For the preceding part double click ID:nRSH8033Yf
(25.0) (4.3) (5.8) (0.5) (0.1) (35.7) - (35.7)
Overlay / advisory net flows - - 20.5 - - 20.5 (5.1) 15.4
External net flows2 (7.4) 1.7 25.3 0.1 (0.1) 19.6 (5.1) 14.5
Internal net flows 0.1 0.8 0.1 0.6 0.1 1.7 - 1.7
Total net flows (7.3) 2.5 25.4 0.7 - 21.3 (5.1) 16.2
Cash management movements3 - (0.1) - - - (0.1) - (0.1)
Market and other movements4 26.7 6.6 (2.6) 0.5 0.3 31.5 1.3 32.8
At 31 December 2016 319.8 134.8 411.9 19.6 8.1 894.2 7.8 902.0
1. Solutions include liability driven investments, multi-asset funds, and include £251.8bn at 31 December 2016 (30 June 2016: £244.0bn) of derivative notionals associated with the Solutions business.
2. External net flows exclude movements in short term solutions assets, with maturity as determined by client agreements and are subject to a higher degree of variability. The total value of these assets at 31 December 2016 was £52.6bn (30 June 2016: £71.0bn) and the movement in these assets is included in market and other movements for Solutions assets.
3. Cash management movements include external holdings in money market funds and other cash mandates held for clients' liquidity management purposes.
4. Switches between asset classes are included in the gross inflows and outflows, and moved out of Market and other movements.
Asset and premium flows
Page 57
3.02 Legal & General investment management total assets half yearly progression
Active
fixed Solu- Real Active Total Advisory Total
For the year ended Index income tions1 assets equities AUM assets assets
31 December 2015 £bn £bn £bn £bn £bn £bn £bn £bn
At 1 January 2015 274.8 102.9 293.3 14.5 8.2 693.7 14.8 708.5
External inflows7 15.9 5.3 8.9 0.8 - 30.9 - 30.9
External outflows7 (22.7) (2.5) (3.4) (0.3) - (28.9) - (28.9)
Overlay/ advisory net flows - - 11.8 - - 11.8 (3.5) 8.3
External net flows3 (6.8) 2.8 17.3 0.5 - 13.8 (3.5) 10.3
Internal net flows (0.3) (0.8) - 0.4 (0.3) (1.0) - (1.0)
Total net flows (7.1) 2.0 17.3 0.9 (0.3) 12.8 (3.5) 9.3
- - - - - - - -
- - - - - - - -
Cash management movements5 - 1.7 - - - 1.7 - 1.7
Market and other movements3,7 7.0 (0.2) (2.4) 1.3 0.7 6.4 - 6.4
At 30 June 2015 274.7 106.4 308.2 16.7 8.6 714.6 11.3 725.9
External inflows7 17.5 6.7 14.2 0.8 - 39.2 - 39.2
External outflows7 (16.1) (1.8) (3.2) (0.6) - (21.7) - (21.7)
Overlay/ advisory net flows - - 6.4 - - 6.4 (1.1) 5.3
External net flows3 1.4 4.9 17.4 0.2 - 23.9 (1.1) 22.8
Internal net flows (0.4) (1.1) - 0.5 (0.1) (1.1) - (1.1)
Disposal of LGF4 - (2.3) - - - (2.3) - (2.3)
Total net flows 1.0 1.5 17.4 0.7 (0.1) 20.5 (1.1) 19.4
Market and other
Cash management movements5 - (0.9) - - - (0.9) - (0.9)
Market and other movements3,7 (1.4) (0.2) 12.6 0.9 - 11.9 0.3 12.2
At 31 December 20156 274.3 106.8 338.2 18.3 8.5 746.1 10.5 756.6
1. Solutions include liability driven investments, multi-asset funds, and include £226.2bn at 31 December 2015 (30 June 2015: £208.1bn) of derivative notionals associated with the Solutions business.
2. Solutions external inflows include £11.7bn of assets associated with the transfer of National Grid UK Pension Scheme after the purchase of their asset manager Aerion Fund Management.
3. External net flows exclude movements in short-term solutions assets, with maturity as determined by client agreements and are subject to a higher degree of variability. The total value of these assets at 31 December 2015 was £59.9bn (30 June 2015: £48.2bn), and the movement in these assets is included in market and other movements for Solutions assets.
4. On 31 December 2015, the group sold Legal & General Holdings (France) S.A. to APICIL Prévoyance.
5. Cash management movements include external holdings in money market funds and other cash mandates held for clients' liquidity management purposes.
6. Total assets under management have been reconciled to the financial investments and investment property on the Consolidated Balance Sheet in note 3.04.
7. Switches between asset classes are included in the gross inflows and outflows, and moved out of Market and other movements. 2015 has been restated for full comparative purposes.
Asset and premium flows
Page 58
3.02 Legal & General investment management total assets half yearly progression (continued)
As at As at As at As at
31.12.16 30.06.16 31.12.15 30.06.15
£bn £bn £bn £bn
Total assets attributable to:1
External 804.5 761.4 671.5 636.1
Internal 97.5 91.7 85.1 89.8
Total assets attributable to:1
UK 716.8 689.6 623.7 598.8
International 185.2 163.5 132.9 127.1
1. Total assets at 31 December 2016 include £7.8bn of advisory assets (31 December 2015: £10.5bn).
3.03 Legal & General investment management total external assets under management net flows
6 6 6 6
months months months months
to to to to
31.12.16 30.06.16 31.12.15 30.06.15
£bn £bn £bn £bn
LGIM total external AUM net flows1 19.5 9.6 23.9 13.8
Attributable to:
International 7.8 6.7 4.1 5.4
UK Institutional
- Defined contribution 1.2 0.8 1.9 1.0
- Defined benefit2 9.8 1.4 17.0 7.1
UK Retail 0.7 0.7 0.9 0.3
1. External net flows exclude movements in short term overlay assets, with maturity as determined by client agreements and cash management movements.
2. In the six months to 31 December 2015, Solutions external inflows include £11.7bn of assets associated with the transfer of National Grid UK Pension Scheme after the purchase of their asset manager Aerion Fund Management.
3.04 Assets under management reconciliation to Consolidated Balance Sheet financial assets
As at As at
30.12.16 31.12.15
£bn £bn
Assets under management 894.2 746.1
Derivative notionals1 (251.8) (226.2)
Third party assets2 (234.7) (157.9)
Derivative liabilities 9.0 8.0
Other3 9.6 (7.9)
Total group financial investments and investment property 426.3 362.1
1. Derivative notionals are included in the assets under management but not for IFRS reporting and are thus removed.
2. Third party assets are those that LGIM manage on behalf of others, for which the group does not have the risks or rewards and thus are not incldued on the IFRS balance sheet.
3. Other includes assets that are managed by third parties on behalf of the group, cash and broker balances.
Asset and premium flows
Page 59
3.05 Assets under administration
LGIM
Consol-
Mature idation Retail
Suffolk Retail adjust- Total Nethe- Work- Invest-
For the year ended Platforms1,2 Life Savings3 ment4 Savings rlands place ments5 Annuities
31 December 2016 £bn £bn £bn £bn £bn £bn £bn £bn £bn
At 1 January 2016 76.9 8.6 29.6 (6.8) 108.3 1.6 14.7 22.6 43.4
Gross inflows1 24.2 0.5 0.8 (0.1) 25.4 0.2 4.4 6.7 7.3
Gross outflows (25.5) (0.3) (3.8) 0.5 (29.1) (0.2) (1.1) (6.7)
Payments to pensioners - - - - - - - - (3.0)
Net flows (1.3) 0.2 (3.0) 0.4 (3.7) - 3.3 - 4.3
Market and other movements 8.0 - 4.1 (0.3) 11.8 0.2 2.8 2.8 6.7
Disposals6 - (8.8) - 1.8 (7.0) - - - -
At 31 December 2016 83.6 - 30.7 (4.9) 109.4 1.8 20.8 25.4 54.4
LGIM
Consol- France
Mature idation and Retail
Suffolk Retail adjust- Total Nethe- Work- Invest-
For the year ended Platforms1,2 Life Savings3 ment4 Savings rlands place ments5 Annuities
31 December 2015 £bn £bn £bn £bn £bn £bn £bn £bn £bn
At 1 January 2015 71.9 7.7 36.0 (6.9) 108.7 4.4 11.1 21.3 44.2
Gross inflows1 8.7 1.2 1.1 (0.5) 10.5 0.4 3.3 5.9 3.0
Gross outflows (5.2) (0.5) (4.1) 0.8 (9.1) (0.3) (0.7) (5.7) -
Payments to pensioners - - - - - - - - (2.6)
Disposals7 - - (2.8) - (2.8) (2.7) - - -
Net flows 3.5 0.7 (5.8) 0.3 (1.4) (2.6) 2.6 0.2 0.4
Market and other movements 1.5 0.2 (0.6) (0.2) 1.0 (0.2) 1.0 1.1 (1.2)
At 31 December 2015 76.9 8.6 29.6 (6.8) 108.3 1.6 14.7 22.6 43.4
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