We put money into businesses that require long term capital, thereby creating assets that can be invested in by the Group's investment and retirement businesses.
As a result these include providing assets with high returns for the shareholder funds, creating new LGIM client products and fee earning opportunities, and delivering assets suitable to back annuity new business.
The multi-billion pound funding gap in the core sectors in which LGC selectively invests, housing, infrastructure and SME finance continue to provide significant opportunities for the medium term future.
We aim to increase the risk-adjusted returns on the group’s principal balance sheet. Our direct investments focus on housing, infrastructure and SME financing.
Our long term funds need to invest money over a very long time horizon. This provides us with an opportunity to increase the returns on shareholder assets. This shareholder capital is currently invested mainly in traded assets such as equities, cash and bonds; however, there's significant scope to move this solvency margin into higher returning long term investments as we build our direct investment capability.
We are primarily UK focused but have developed some joint investment schemes with EU partners
Chief Executive Officer:
Read Paul's profile
Percentage of divisional profit: Legal & General Capital represent 13% of group divisional operating profit
£15 billion direct investment programme with £10 billion invested to date
We focus on direct investments in four key sectors:
“We aim to invest for the long term in econimically and socially useful assets.”
Legal & General Capital Website: https://www.legalandgeneral.com/pensionrisktransfer/
Our interactive investment map: http://map.legalandgeneralgroup.com/