The firm stands firmly rooted in the UK market and demonstrates a clear ambition to extend its reach across Europe and beyond.
LGIM's operations are driven by a strategic vision encompassing three key pillars: modernisation, diversification, and internationalisation. The firm is led by industry veteran CEO Michelle Scrimgeour, who assumed the position in 2019 following the planned departure of Mark Zinkula in 2018. The transition between leaders was well-orchestrated, ensuring continuity and active engagement throughout the process. Upon her arrival, Scrimgeour brought a new chief financial and chief investment officer, and turnover at the senior leadership level has been minimal since then.
LGIM's investor-centric approach is evident in its policy to charge low fees on its core passive range, convert underperforming actively managed funds into trackers, and a long-standing focus on investment stewardship.
The firm’s passive range—which accounts for 52% of assets in funds—is very competitive. That said, the firm has had mixed results in recent years with its active equity fund range. The Future World range, offering environmental, social, and governance-focused exposure, primarily underperformed because of market conditions favouring value over growth. LGIM has also identified issues within its active equity-income range, and it has taken steps to address this distinct area of underperformance.
Elsewhere, LGIM has positioned itself as a prominent player in thematic investing. Leveraging its historical strengths, the firm offers investors passive funds in this area. That said, there is room for improvement. Some products in the thematic lineup lack competitive pricing, while the inclusion of highly specialised and undiversified funds may pose risks to retail investors. Nevertheless, LGIM remains committed to safeguarding capital and maintains an Above Average Parent Pillar rating.