14 June, 2016
As part of the CBI's 'Great Business Debate', Mark Zinkula, CEO, LGIM (photo, above), wrote an article about how asset management drives growth in the UK and can improve people's lives.
Asset managers have always been integral to the creation of economic growth. We support people in investing for their futures, turning their hard-earned savings into productive financing for the economy and helping business to thrive.
Savers naturally want to see the best investment performance possible, which requires responsible stewardship of their assets. This supports long-term, sustainable investment and improves economic and productivity growth in the UK. We invest in companies to help them grow, and in property and infrastructure projects which support communities and create jobs. It’s not new, we’ve been doing it for years, but more needs to be done.
Legal & General has committed £15 billion to invest in housing and urban regeneration, which will stimulate economic growth. We’ve already put £7 billion of our ‘slow money’ or ‘patient capital’ into infrastructure-related investments in Leeds, Liverpool, Cardiff, Salford, London, Bracknell, Plymouth and many other UK towns and cities.
Asset managers can help solve Britain’s severe housing crisis. Institutional investment in private, purpose-built rented housing can help to improve the quality of life for tenants. Institutional investors also bring stability to the housing market by investing in large-scale projects and taking a long-term view, seeking a steady return over 20 or 30 years.
The move towards defined contribution pension schemes will give people a greater say in determining where their savings are invested, and asset managers have a responsibility to ensure that the companies in which we invest do the right thing. Our award-winning corporate governance team aims to bring about positive change by using our scale and influence to ensure companies integrate environmental, social and governance factors into their everyday thinking and culture.
As one of the largest investors in the UK equity market, and a leading institutional manager of UK pension schemes, we’re aiming to drive higher standards of corporate behaviour. We are investing to increase growth, raise productivity and create jobs in ways that are directly visible to individual savers.