A Chicago-based registered investment advisor
Built to serve our clients
LGIM America (LGIMA) was founded in 2006 with the purpose of helping people achieve their long-term financial goals. We offer a range of strategies to help our institutional clients (corporations, healthcare agencies, non-profit, educational institutions, public plans and Taft-Hartley multi-employer plans) manage their investment objectives, which can range from market-based alpha-oriented strategies, derivative overlays, equity solutions and those that are designed to be more liability-centric. Encouraging a diverse and inclusive environment coupled with a solutions-focused culture allows us to increase our breadth of knowledge and the likelihood of improved client outcomes and stronger financial performance. We have teams of experienced, innovative professionals committed to helping plan sponsors meet their pension promises, managing investment exposures efficiently to seek enhanced returns while mitigating risks, and working to generate returns while making a positive societal difference. As of June 30, 2023, LGIM America had $221 billion in assets under management.
We partner with US institutions
With deep and experienced investment teams built on a culture of commitment to client service, investment excellence, and custom solutions, we strive to solve clients’ toughest challenges.
The DC market is evolving from an asset-only growth mentality to one that explicitly targets secure income as the main objective. Through collaboration with clients, we continue to deepen and expand our solutions for DC plans. We apply a liability driven mindset focused on income generation for the fullness of retirement, accompanied by return-seeking index and active portfolios that employ a truly differentiated, “fiduciary-forward” approach. We believe clients will find value in better understanding the nuances, hidden costs and hidden risks in index capabilities. We take the steps needed to reduce potential conflicts and increase transparency.
Most public and multi-employer plans are looking for innovative ways to close their funding gaps, reduce fees, and increasingly use their assets to make a positive difference in society and in long term investment results. We are working with clients on choosing low-cost indexing strategies that we believe are the best fit for their plan needs. In addition, some clients are seeking to replace active equity managers or complement market capitalization weighted index exposure with diversifying factor-based index strategies. These strategies are a low-cost alternative that we believe can enhance overall risk/reward profiles for many plans. We are also working with clients on innovations in more liability aware fixed income portfolios that we believe better manage short term cash flow needs while also improving the efficiency of their return seeking assets. Often these solutions include multi-asset overlays that help clients maintain desired policy allocations, hedge tail risks and seek to add value through tactical asset allocation decision-making.
While many corporate DB plans face similar challenges, our experience shows that each one has unique perspectives, needs, and objectives. We work with clients to help them envision and pursue their desired DB pension “endgames.” Over the past decade, we have seen clients follow a path of reducing funding ratio risk by adopting long duration credit benchmarks, implementing custom liability-driven programs and using sophisticated risk management overlays to achieve their endgame objectives. In some cases, this endgame has meant building an active long-duration, low-turnover portfolio whose cash flows are designed to closely track the expected benefit payments of the plan in the future. These solutions are particularly attractive to plans with a goal of long-term self-sufficiency, or even with an endgame goal of pension risk transfer. To round out our range of solutions, we launched our private credit capabilities in 2017, that can provide a yield and diversification enhancement for solutions that don’t need the liquidity of the public credit markets.
By working with clients locally and drawing upon the Sustainable Investments intellectual capital we have developed globally, we believe we can add significant long-term value for our clients in every segment. We do this through a focus on three pillars: stewardship, integration and solutions. In the area of stewardship, we have established a leading global position through our approach to active ownership, utilizing a global consistent engagement process and proxy voting policy to encourage a focus on sustainable long-term results and best practices. We continue to proactively integrate Sustainable Investment factors into our investment decision making and risk management processes. And last, but not least, we work closely with clients to co-design solutions targeted to their unique needs and preferences.
The global enterprise: Legal & General
In 1836, six lawyers met in a coffee shop in London to establish an insurance company for the legal community. Later made available to the general public, it was named Legal & General Life Assurance Society. Over the years, the name was shortened to Legal & General. In 1970, Legal & General Investment Management was established to manage assets for pension funds, institutional, and private clients. The company expanded to the US in 2006 to establish Legal & General Investment Management America.
* LGIM America is the affiliate of London-based Legal & General Investment Management (LGIM). Pensions & Investments online. Largest Money Managers 2023 | Pensions & Investments (pionline.com). Rankings are calculated using AUM of December 31, 2022. No compensation was provided to P&I for consideration in the ranking process. This ranking does not imply that LGIM America will or has been successful in its product offerings or services.
** As of December 31, 2022. Global assets tallied biannually. The AUM disclosed aggregates the assets managed by Legal & General Investment Management (LGIM) in the UK, Legal & General Investment Management America (LGIMA) in the US, and Legal & General Investment Management (LGIM - Asia) in Hong Kong. The AUM
includes the value of securities and derivatives positions. Conversion rate: 1 GBP = 1.2080 USD.
*** LGIM America is the affiliate of London-based Legal & General Investment Management (LGIM), one of Europe’s largest institutional asset managers and a global investor, with a heritage dating back to 1836.