New service positioned to meet rising demand from advisers
9 Jun 2021
Legal & General Investment Management (LGIM) has today announced the launch of its Model Portfolio Service (MPS), a range of growth and income model portfolios with varying risk profiles. In a move that is deemed highly competitive, the initial pricing will be set at an annual management fee of 6bps*, in response to client demand. Designed to help a broad range of investors, these model portfolios are positioned to help offer attractive returns for clients in line with their investment goals.
MPS brings together an array of expertise and experience from within LGIM. This includes the highly experienced asset allocation team with over 30 investment professionals, headed up by Emiel van den Heiligenberg. The team collectively oversee £63 billion in multi-asset funds, including the award-winning Multi-Index Fund range. They will work in partnership with the Solutions team which already oversees £200bn of institutional client portfolios. Justin Onuekwusi, Head of Retail Multi Asset Funds at LGIM, will lead the Model Portfolio Service proposition.
The MPS range, which is available to investors via their financial adviser, includes 21 growth-focused model portfolios, designed to cater to investors looking to grow their capital over time, and provides three low-cost investment styles:
LGIM will also offer four income-focused model portfolios, which will hold a balance of underlying funds to deliver income, while also maintaining the potential for capital growth. The team will regularly review and rebalance model portfolios to ensure that investments are continuously kept aligned with investors’ risk profiles and desired investment objectives.
The launch of LGIM’s MPS will offer opportunities for partnerships at scale and reflects the growing demand from advisers for competitively priced model portfolios, which meet a broad range of client investment needs and risk profiles. LGIM’s MPS brings together its widely recognised multi-asset capabilities and leading index expertise for a cost-effective and scalable offering that aims to provide investors with attractive risk-adjusted returns.
LGIM has built its MPS around its five cornerstones of investing: suitability, diversification, active asset allocation and rebalancing, cost-effectiveness and engagement. Each of the model portfolios pertain to a stated investment target and corresponding risk profile, employing a diversified asset allocation approach that aims to maximise outcomes within the stated risk parameters.
Each of the LGIM’s model portfolios will have access to a range of asset classes across active and passive strategies, with a specific risk target in mind. LGIM has established a robust risk management framework and a dedicated governance committee to ensure that portfolios remain on track.
Justin Onuekwusi, Head of Retail Multi Asset Funds at LGIM: "In today’s market, advisers need a bespoke, yet easily accessible, range of solutions that cater to a broad range of risk profiles, price points and investment styles – this is precisely why we have launched our MPS. Leveraging our deep multi-asset expertise and responsible investing and stewardship credentials, our primary focus will be selecting the most attractive investments across asset classes, backed by robust research and risk management, with the aim of achieving long-term returns for our clients."
James Crossley, Head of UK Sales at LGIM: "The launch of our MPS is a direct reflection of the demand we are seeing from advisers for competitively priced and flexible model portfolio solutions. Our scale as one of the largest asset managers in the world means that we can provide this robust investment proposition at a competitive price. We think this can disrupt the market whilst also applying our deep investment expertise, across different strategies, to ensure that our model portfolios offer attractive returns for clients in line with their investment goals."
Established in 1836, Legal & General is one of the UK's leading financial services groups and a major global investor, with over £1.2 trillion in total assets under management* of which a third is international. We also provide powerful asset origination capabilities. Together, these underpin our leading retirement and protection solutions: we are a leading international player in pension risk transfer, in UK and US life insurance, and in UK workplace pensions and retirement income. Through inclusive capitalism, we aim to build a better society by investing in long-term assets that benefit everyone.
*at 31 Dec 2022
Legal & General Investment Management
Legal & General Investment Management is one of Europe’s largest asset managers and a major global investor, with total assets under management of £1.2 trillion1 ($1.4tn, €1.4tn, CHF 1.4tn). We work with a wide range of global clients, including pension schemes, sovereign wealth funds, fund distributors and retail investors.
For more than 50 years, we have built our business through understanding what matters most to our clients and transforming this insight into valuable, accessible investment products and solutions. We provide investment expertise across the full spectrum of asset classes including fixed income, equities, commercial property, and cash. Our capabilities range from index-tracking and active strategies to liquidity management and liability-based risk management solutions.
*at 31 Dec 2022
1LGIM internal data as at 31 December 2022. These figures include assets managed by LGIMA, an SEC Registered Investment Advisor. Data includes derivative positions.
KEY RISKS
Past performance is not a guide to the future. The value of an investment and any income taken from it is not guaranteed and can go down as well as up, you may not get back the amount you originally invested. For illustrative purposes only. Reference to a particular security is on a historical basis and does not mean that the security is currently held or will be held within an LGIM portfolio. The above information does not constitute a recommendation to buy or sell any security. Views expressed are of LGIM as at 3 January 2023.
IMPORTANT LEGAL NOTICE
In the European Economic Area, it is issued by LGIM Managers (Europe) Limited, authorised by the Central Bank of Ireland as a UCITS management company (pursuant to European Communities (Undertakings for Collective Investment in Transferable Securities) Regulations, 2011 (S.I. No. 352 of 2011), as amended) and as an alternative investment fund manager with "top up" permissions which enable the firm to carry out certain additional MiFID investment services (pursuant to the European Union (Alternative Investment Fund Managers) Regulations 2013 (S.I. No. 257 of 2013), as amended). Registered in Ireland with the Companies Registration Office (No. 609677). Registered Office: 70 Sir John Rogerson's Quay, Dublin, 2, Ireland. Regulated by the Central Bank of Ireland (No. C173733).
LGIM Managers (Europe) Limited operates a branch network in the European Economic Area, which is subject to supervision by the Central Bank of Ireland. In Italy, the branch office of LGIM Managers (Europe) Limited is subject to limited supervision by the Commissione Nazionale per le società e la Borsa ("CONSOB") and is registered with Banca d'Italia (no. 23978.0) with registered office at Piazza della Repubblica 3, 20121 Milan, (Companies' Register no. MI - 2557936). In Germany, the branch office of LGIM Managers (Europe) Limited is subject to limited supervision by the German Federal Financial Supervisory Authority ("BaFin"). In the Netherlands, the branch office of LGIM Managers (Europe) Limited is subject to limited supervision by the Dutch Authority for the Financial Markets ("AFM") and it is included in the register held by the AFM and registered with the trade register of the Chamber of Commerce under number 74481231.Details about the full extent of our relevant authorisations and permissions are available from us upon request. For further information on our products (including the product prospectuses), please visit our website.