The move follows the growing demand for LGIM’s institutional investment capabilities. LGIM is the UK’s largest institutional asset manager with €505bn in assets under management as at June 2013, and also ranks second in Europe among institutional asset managers.
Mike Craston, head of LGIM’s global institutional business said the implementation of LGIM’s European wholesale capability was well under way.
He said the investment manager had received approval from Luxembourg’s financial regulator Commission de Surveillance du Secteur Financier (CSSF) for its first Sicav as well as three underlying funds.
An application for five further funds has been filed with the CSSF and approval is expected before the end of the year. Work is under way to register the funds initially in 12 European countries, allowing investors in key markets in Europe to also access these strategies.
Mr Craston explained that LGIM would target specific European markets with a two-pronged approach aimed at wholesale and institutional markets.
“Initially we will be focusing on European investors seeking exposure to our flagship active fixed income capabilities,” he said.
“There has been significant interest from global financial institutions in the UK, Germany and Switzerland and pension funds in the Nordic region wanting to gain access to our active credit and absolute return type strategies, which are already successfully marketed to institutional clients in the UK.”
With distribution capabilities in place in the Netherlands, France, Ireland, Germany and the Nordic region, it is anticipated that further appointments will be announced in the course of 2014.
Mr Craston said these were very mature, diverse and well-developed markets. “Our expansion plans will be focused, targeting global and regional banks, where we are looking to add our products to their platforms, and additionally the institutional market.”
L&G said its capabilities ranged from index-tracking and active strategies to liquidity management and liability-based risk management solutions.