Legal & General Investment Management, the fund arm of the UK insurer, saw profits fall by 13% in 2003, a sharp contrast to the 73% upswing in revenues at rival index tracking manager, Barclays Global Investors (BGI).

Operating profits from fund management at L&G was £80m (€119m), £12m less than the £92m recorded a year ago. This included profits from its UK managed pension fund business falling from £83m in 2002 to £71m last year.