Active equity

Why active equity?

Our product offering within active equity is focused on only those strategies where we believe an active investment style can sustainably add value for our clients compared to passive alternatives.

Why LGIM for active equity?

  • We prioritise delivering solutions which are orientated to specific client investment needs and where we believe active investing can sustainably add value.
  • Our strategies tend to be high conviction, concentrated portfolios and can be very different to the relevant benchmark, displaying a high level of active share.
  • As one of the UK’s largest and most well-established asset managers, our scale provides exceptional access to the management teams of the underlying companies we invest in. This is an invaluable aide to forming bottom-up investment insights.
  • Each specialist team benefits from the scale and breadth of resources, discipline and risk controls offered by LGIM.

Our approach

The active equity team is comprised of three groups: Income, Growth and Global Equity. The key characteristic that binds the three teams together is their focus on stock selection which is driven by bottom-up, fundamental analysis. The research process aims to uncover a high conviction view of a stock, where we believe its full potential upside, is not correctly priced-in by the market.

Income - The Income team aim to exploit the underestimated contribution of dividends to the total returns of stocks located in the UK, Europe and Asia. In addition and most importantly, the team aim to avoid those high yielding stocks which may not be able to sustain their dividend in the coming years.

Find out more about our Income Strategy

Growth - The team invests in high conviction ideas in small and midsized companies, an area beyond the spotlight of many investors. These companies tend to be less well covered and researched and therefore offer more opportunities to find new and misunderstood investment opportunities. These areas can benefit the most from skilful active timing of purchase and sell decisions.

Find out more about our Growth Strategy

Global equity - An outcome orientated suite of products which target returns of inflation plus 4% and invest in a concentrated portfolio of large-cap equity and investment grade fixed income. There is no inflation plus 4% index that can simply be matched through a passive approach. We believe this return target is a compelling objective for clients with relevance for their long-term savings and pensions goals.

Find out more about our Global Equity Strategy