Fidelity International’s D2C platform Fidelity Personal Investing is set to double its client numbers as it buys LGIM’s UK personal investing business.
The deal brings on board 300,000 new customers and £5.8bn assets under management. Currently, Fidelity Personal Investing has 280,000 customers with £20.3bn AUM.
The transaction is set to complete in the next 12 months, a press release issued on Friday morning said.
LGIM clients will pay the same or less than they do today once transferred to the Fidelity platform.
Fidelity International global head of personal investing and advisory Stuart Welch said the acquisition was evidence of the firm’s ambition in the UK direct investor market. Earlier this month, Fidelity International revealed it had purchased low-cost platform Cavendish Online.
LGIM chief executive Michelle Scrimgeour (pictured) said clients would benefit from Fidelity International’s scale and operational capacity while continuing to enjoy LGIM’s investment expertise, which underpinned their original product purchase.
An LGIM press release said the sale would not impact LGIM’s intermediary retail business. The assets are held in legacy Isa, Junior Isa and general investment account products.
The impact of the transaction on LGIM’s earnings and solvency was non-material.
See also: Fidelity International acquires low-cost D2C platform Cavendish
