LGIM surpasses milestone of £100bn in DC assets

Legal & General Investment Management (LGIM) has passed the milestone of £100bn defined contribution (DC) assets under management.

The company, which now has £102bn DC assets under management across 3.9 million members, said its DC division had recorded an 18 per cent compound annual growth rate over the last seven years and had more than doubled its assets under management from £46.3bn in the last five years.

It added that total DC assets under management had increased by more than a third since 2018, having been driven by strong inflows from bundled and investment-only clients, member contributions from existing and new schemes, as well as large asset transitions from other providers.

LGIM head of DC, Emma Douglas, said: “Investment in technology has played a key role here. Over the past years, LGIM has rolled out a number of initiatives which include video benefit statements, a financial wellbeing hub and an app which gives savers real-time access to employee benefits information including their pension as well as other applications through a single login.”

She noted that member feedback showed that people were particularly interested in “finding out how their investments can make a difference”, adding that LGIM’s research had found that 68 per cent of savers would engage with their pension if they knew it was invested in environmental initiatives.

Consequently, LGIM rolled out a pilot fintech platform with Tumelo that allows members to indicate how they would vote on key issues at the companies that their funds are invested at.

Douglas concluded: “This important milestone has been reached through the hard work of our 600-plus team and close collaboration with our clients and members. We are in a strong position as we look ahead to the next phase of growth.

“We have already invested in excess of £40m in our DC business over the last three years and are committed to maintaining investment in the years ahead, as we respond to savers needs by building member feedback into our product development as well as improving the way in which we communicate with savers to ensure they have the support they need during their savings journey up to and through retirement.”

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