OTHER SERVICES
Our wide range of specialisations means that we can provide an integrated service tailored to your requirements.
Transition and Portfolio Transfer Service
The movement of assets between managers requires careful handling in order to avoid unnecessary costs. LGIM is a leading transition manager and undertook around £19bn of such transactions last year. We liaise closely with ceding managers and custodians where assets are transferred in-specie to our unit funds.
We aim to minimise the cost of restructuring portfolios, but where purchases and sales are required, we can often cross these transactions with those from other funds at mid-market prices. This benefit is a direct consequence of the size and diversity of our client funds.
Segregated Portfolios
Although many of our clients' objectives are achieved via our range of unitised funds, some specialised mandates may require bespoke treatment. For these, a portfolio of directly held securities is the answer. The scale of our investment activities and the capability of our Operations team, comfortably provides the detailed administration and reporting requirements that this approach invariably demands. We can match your requirements for single or multi-asset portfolios and provide currency overlay to mitigate currency risk.
Liability Driven Investment
Market volatility over the past few years has prompted a re-examination of the range of investment solutions. One recurring theme has been the need for investment strategies to be more liability driven. LGIM has considerable experience managing funds to meet liabilities, not only for pension schemes, but also for Legal & General's life assurance business.
Benchmark Management and Asset Allocation
As we offer multi-asset solutions, our clients will often require some form of benchmark management overlay in order to ensure that their asset positions are maintained when markets diverge and when cash is invested or withdrawn. Such benchmark management can be implemented very simply by defining ranges around a central distribution and rebalancing the portfolio when asset positions fall outside those ranges. Alternatively, LGIM can actively allocate exposure to individual asset classes on in-house market views that aim to add value to the overall portfolio performance.
Ethical Investments
The Legal & General Ethical Trust, a unit trust, is a portfolio investing in companies whose business conforms to a range of ethical and environmental guidelines. Securities representing all such companies in the FTSE 350 index (excluding investment trusts) will be held with weightings generally proportionate to their market capitalisation.
We employ pragmatic replication where nearly every qualifying stock in the index is held, a process very similar to stratified sampling. Weights are allowed to fluctuate within a narrow range around the exact index weight, avoiding unnecessary trading and therefore minimising transaction costs.
