Constructing dynamic and custom equity solutions aligned with client objectives
Within equity markets, we are witnessing a significant shift in investor thinking about how to best access market beta. As a result of this, we at LGIM America take a dynamic approach to equity solutions. We aim to build innovative approaches to support this trend, while simultaneously retaining a stable suite of traditional strategies to serve a variety of institutional clients. This allows us to provide support for a broad spectrum of investors.
We offer a spectrum of building block options that can be implemented independently or collectively to construct a dynamic and custom equity solution aligned with our clients’ objectives.
- Event driven (IPOs/SPOs, pairs trading, late merger arbitrage, M&A and spin-offs, reweights)
- Rebalance prediction (anticipate additions and deletions)
- Risk inefficiencies (stranded assets, geopolitical risk, meme stocks, smart sustainable, quality vs. junk)
- Synthetic asymmetry (monitoring funding rates and supply/demand imbalances to assess attractiveness of synthetic exposure vs. physical exposure)
- Decarbonization glidepath
- Portfolio implied temperature alignment risk measurement
- Stranded asset consideration
- Climate-related investment risk and opportunities
- Equity overlay, downside protection and capital efficiency considerations
- Income generating strategies
- Inflation protection
- Plan-specific ESG impact
- Thematic and tactical implementations
We are of the opinion that taking a methodical approach to the investment process can result in the most thoughtful solutions for the needs of our clients. The design of our equity solutions begins with determining the suitable benchmark for the strategy, which is done after we have listened to the objectives and constraints of our clients. Following that, the risk parameters and objectives will then be established. Through modeling and iterations, we arrive at a customized solution. Lastly, our portfolio managers are responsible for implementing, monitoring and evolving the strategy as required and in accordance with the investment guidelines and market opportunities.
Benefits of partnering with us
As a full-service provider of equity solutions, we make available to a wide variety of institutional investors an extensive range of strategies, products and investment vehicles to address their specific needs.
The combination of our worldwide reach and considerable experience in equity investment may enable us to deliver these solutions in a way that is both thoughtful and deliberate.
We make a conscious effort to maintain a degree of flexibility, which enables us to actively seek out opportunities to provide customers with an even higher level of value.
Read our insights
We publish a range of research articles and publications covering key themes in financial markets and topical investment commentary.
The material in this presentation regarding Legal & General Investment Management America, Inc. (“LGIMA”) is confidential, intended solely for the person to whom it has been delivered and may not be reproduced or distributed. The material provided is for informational purposes only as a one-on-one presentation, and is not intended as a solicitation to buy or sell any securities or other financial instruments or to provide any investment advice or service. LGIMA does not guarantee the timeliness, sequence, accuracy or completeness of information included. The information contained in this presentation, including, without limitation, forward looking statements, portfolio construction and parameters, markets and instruments traded, and strategies employed, reflects LGIMA’s views as of the date hereof and may be changed in response to LGIMA’s perception of changing market conditions, or otherwise, without further notice to you.
Accordingly, the information herein should not be relied on in making any investment decision, as an investment always carries with it the risk of loss and the vulnerability to changing economic, market or political conditions, including but not limited to changes in interest rates, issuer, credit and inflation risk, foreign exchange rates, securities prices, market indexes, operational or financial conditions of companies or other factors. Past performance should not be taken as an indication or guarantee of future performance and no representation, express or implied, is made regarding future performance or that LGIMA’s investment or risk management process will be successful.
In certain strategies, LGIMA might utilize derivative securities which inherently include a higher risk than other investments strategies. Investors should consider these risks with the understanding that the strategy may not be successful and work in all market conditions.
Reference to an index does not imply that an LGIMA portfolio will achieve returns, volatility or other results similar to the index. You cannot invest directly in an index, therefore, the composition of a benchmark index may not reflect the manner in which an LGIMA portfolio is constructed in relation to expected or achieved returns, investment holdings, portfolio guidelines, restrictions, sectors, correlations, concentrations, volatility, or tracking error targets, all of which are subject to change over time.
Unless otherwise stated, references herein to “LGIM”, “we” and “us” are meant to capture the global conglomerate that includes Legal & General Investment Management Ltd. (a U.K. FCA authorized adviser), LGIM International Limited (a U.S. SEC registered investment adviser and U.K. FCA authorized adviser), Legal & General Investment Management America, Inc. (a U.S. SEC registered investment adviser) and Legal & General Investment Management Asia Limited (a Hong Kong SFC registered adviser). The LGIM Stewardship Team acts on behalf of all such locally authorized entities.