The company said its revenues in its pensions arm decreased after it had to sell higher fee products in order ‘to meet collateral requests’.
Legal & General Investment Management is deferring monthly dealing by institutional clients in its 3.7 billion pounds ($4.17 billion) Managed Property Fund, it said in an emailed statement to Reuters on Thursday. The investment management unit of the British insurer said trading in all other property funds, retail and institutional, was unaffected. Open-ended real estate funds across Britain have been battling to meet a surge in requests for investor exits, against an uncertain economic backdrop and sharp rises in interest rates which have challenged the investment case for commercial property.
Legal & General has been having a tough time of it since Kwasi Kwarteng’s disastrous mini‑Budget: its shares have lost about a 10th of their value in those four weeks, compared with (for example) 5.6pc for Direct Line, a more bread‑and‑butter insurer, and 4.3pc for the FTSE 100.