"And following the acquisition of Canvas ETF (part of the ETF Securities deal) they have really worked to develop an innovative thematics range, which I think is particularly meeting demand from the retail space.”
The most recent data from Morningstar, which covered the month of December, showed LGIM – the asset management division of L&G – had the largest net inflows into its mandates of any firm in the UK market in 2022, with a net increase of £4.1bn, taking the total assets of the asset management unit to £56bn in terms of its retail funds.
According to the company half year accounts for the first six months of 2022, the asset management unit is actually the largest of the three divisions it operates, with total assets under management of that unit being£1.29tn. Post-tax profit for the period was £1.15bn, a rise of 8 per cent on the previous year.
But that focus on growing the passive book of business may have had consequences for the active mandates, with at least one fund manager, now at a different firm, citing the feeling that active managers at LGIM are the “poor relation” for his decision to leave and move to another business.
Growth engines
Russ Taplin, senior consultant at Altus, says: “Nigel Wilson was a well-liked leader. He grew the company in quite a considered way over the years. I think one of the things that made him stand out is his understanding of the consumer and a good view of how to grow the business based on that.
"One of the features of his strategy in recent years has been to try to invest more into the regions, into illiquid assets outside of London. There were a couple of reasons for this, availability of those assets was one, and the risk profile of the assets.
"Investing more into the regions and regional development generally was also something he has spoken passionately about.”
Taplin adds that one area in which L&G has become a substantial player is equity release.
In terms of the product offering in this area, he says: “They can be quite expensive. It is fair to say I think that they focus on the wealthier end of the equity release market, and they are very good at profiling customers, which fits in with the previously mentioned way in which they grow in a considered way.
