Our Model Portfolio Service: Meeting your needs - Legal and General ...
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2021 | Our Model Portfolio Service For retail clients
Our Model
Portfolio Service:
Meeting your needs
2021 | Our Model Portfolio Service 2021 | Our Model Portfolio Service
What is a model portfolio?
A model portfolio is a collection of
We’ve designed our Model Portfolio investments (predominantly funds) designed
to work together to meet specific objectives
Service to help grow your investments and defined risk levels. This will be actively
and achieve your long-term goals. managed on a discretionary basis by an
investment team who ensures the portfolio
At the heart of this discretionary investment service is our range of stays on track. A responsible investor
model portfolios, designed to meet the needs of a wide range of
investors. Your model portfolio, which has been chosen for you by Our purpose is to create a better future through the role of
your financial adviser, will be managed by our team of 31 investment responsible investing. Responsible investing is an overarching
professionals, including economists, strategists and fund managers theme which places environmental, social and governance
who look after over £63 billion1 in multi-asset funds. This team will (ESG) factors at its very heart.
also perform regular reviews and rebalances of the model portfolios
to ensure your investments are performing in line with expectations. In our aim to be responsible investors, we broaden our focus
beyond only seeking a financial gain, and ask ourselves how
While investing can be a daunting task, we believe we have the can our investment decisions, which we undertake on your
necessary experience and expertise to help manage your money. behalf, positively impact wider issues such as climate change,
social inequality and gender diversity.
LGIM is the investment management arm of Legal & General Group,
with a heritage dating back to 1836. And today, we are one of the UK’s We believe ESG factors are financially material. As a company,
leading investment management companies, trusted by investors we use our scale and influence to bring about real change in
to manage over £1.2 trillion2 across a range of asset classes and the companies and markets in which we invest.
different investment strategies.
That's why we conduct extensive research into the potential
Our size means we can also find efficiencies in the costs we pay for environmental and societal impacts of the investments we
managing the funds and then pass these savings to you. make on behalf of our clients.
1. LGIM internal data as at 31 December 2020.
2. LGIM internal data as at 30 June 2020. The AUM disclosed aggregates the assets managed
by LGIM in the UK, LGIMA in the US and LGIM Asia in Hong Kong. The AUM includes the value of Key risk warning
securities and derivatives positions. Remember the value of an investment and any income taken
from it is not guaranteed and can go down as well as up, you
may not get back the amount you originally invested.
2 3
2021 | Our Model Portfolio Service 2021 | Our Model Portfolio Service
What we do for you
Your financial adviser will
Build remain responsible for
Each portfolio will have access to a wide range
of asset classes which aims to generate a
recommending how you
diverse range of investment returns, with a
specific risk target in mind.
should invest your money,
and which one of our model
Reporting Review portfolios may best suit
We provide factsheets, reports and regular As markets move, it might mean that your needs.
market commentary via your financial one investment may deliver outstanding
adviser, so you can keep up-to-date and returns, or another falls sharply. Without
see exactly how your model portfolio has careful management, these movements
been performing. would change the risk profile of a portfolio
to a level that you might otherwise be
This service is only available for those of uncomfortable with. Instead, we keep an
you investing via a financial adviser. This eye on the markets and adjust the mix of
means your financial adviser will remain investments to aim to keep your portfolio’s
responsible for recommending how you level of risk on track.
should invest your money, and which one
Research
of our model portfolios may best suit your
needs.
Our expert team undertakes regular rigorous
research across global financial markets to
find new investment opportunities managed
both in-house and externally, aiming to deliver
strong returns whilst mitigating any potential
adverse risks within your portfolio.
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2021 | Our Model Portfolio Service 2021 | Our Model Portfolio Service
How we manage your money Choosing the level of risk that may be right for you
Here are our five pillars of multi-asset investing that we believe help us meet your goals Our portfolios in detail
If the investment landscape changes then we aim
to ensure that your investment continues to meet
its objectives, but never takes on more or less risk
than its risk profile allows. Managing risk is a core
Appropriateness Diversification Expertise Cost-effectiveness Engagement consideration for the Model Portfolio Service. Our
team has established a robust risk management
Find the portfolio that may be Spreading the risk Active investment management Minimising costs and passing Seeking positive change framework and a dedicated governance
appropriate to your needs the savings onto you committee with members from LGIM’s
No doubt you’ve heard the saying Our team reviews all the As the investment manager of independent risk function, to ensure your portfolio
We believe you need a portfolio “don’t put all your eggs in one portfolios regularly and adjusts These portfolios have access to many of the funds which you will stays on track.
that is aligned with your basket”. In investing terms, this them when our views on the LGIM’s low-cost index funds to invest in, we act as shareholders
investment goals. We have means we don’t put all your markets change, aiming to keep the overall charges low, on your behalf to influence Your financial adviser will assess your financial
designed each portfolio with a money in just one type of maximise results within your risk while being able to take company actions by voting on circumstances and can recommend which
particular investment target and investment or market. appetite. advantage of more specific motions put forward by boards. portfolio within our service may suit your needs
‘risk profile’ and we aim to always investment opportunities where and attitude to risk.
If the landscape
keep any potential risk within Our portfolios are multi-asset - appropriate. Our dedicated Investment
those set parameters. Your this means they invest across a Stewardship team uses our scale Remember the value of an investment and any
changes then we aim
financial adviser can recommend variety of investment types, from to ensure your voice is heard loud income taken from it is not guaranteed and can go
a portfolio for you based on your bonds and commercial property and clear to drive meaningful down as well as up and you may not get back the
needs and risk appetite. to shares in companies traded on change of environmental, social amount you originally invested.
UK and international markets. and governance matters around
the world.
to ensure that your
investment continues
to meet its objectives
Remember the value of an investment and any income taken from it is not guaranteed and can go down as well as up, you may not get back the amount you originally invested.
6 7
2021 | Our Model Portfolio Service 2021 | Our Model Portfolio Service
Our Growth strategy Our Income strategy
Our 21 growth model portfolios are designed to help What our Index, Blended and ESG model portfolios invest in Our four income-focused portfolios hold a mix What our Income model portfolios invest in
those of you looking to grow your capital and receive of investments and are designed to match a
The below chart illustrates how our Growth portfolios invest in a blend of company shares, bonds
income over time with a wide choice of risk profiles. and alternatives* depending on the level of risk each portfolio can take. defined level of risk. Lower willingness to take risk
Bonds and cash Shares (equities) Alternatives
(more bonds and cash)
The portfolios may be appropriate for those looking to Unlike some income-focused funds, we believe
Lower willingness to take risk
leave their money to accumulate rather than regularly Bonds and cash1 Shares (equities)2 Alternatives3 in aiming to grow your investment as well as
(more bonds and cash)
MPS Income portfolios
3
withdrawing income from their investment pot. delivering income. This helps make sure that the
level of income you receive is sustainable over
1 4
Your money will be invested across several funds which time and your pot will last for longer.
in turn invest in thousands of company shares2 and
2 5
bonds1, with a bias towards investments which the fund The portfolios hold a balance of underlying
MPS Growth portfolios
managers expect to deliver long-term growth. funds which typically offer income, as well as
3 6
those with the potential for capital growth.
For each risk profile there is a choice of three low-cost
4
investment styles to help meet your objectives. This chart illustrates what each portfolio invests Higher willingness to take risk
in based on the level of risk it can take. (more shares)
5
Index model portfolios - Thanks to LGIM’s size and
expertise in index fund management, our passive model
6 Source: LGIM. For Illustrative purposes only.
portfolios can predominantly invest in our own index
funds, which means we can pass the savings back to
7
you.
Blended model portfolios - For those who wish to pay Higher willingness to take risk Source: LGIM. For Illustrative purposes only.
more for the potential for additional outperformance, our (more shares)
blended portfolios also invest in active funds managed
by LGIM and external asset managers. Bonds – A type of ‘IOU’ issued by governments, companies or other institutions,
1.
usually paying a fixed interest rate over time.
ESG model portfolios - For those of you seeking
Shares – An investment that gives the owner partial ownership of a company,
2.
investments that integrate ESG factors. We do this by
and may deliver income in the form of dividends.
investing in ESG-focused funds, including LGIM's Future
World fund range. Alternatives – these are investments that fall outside of the more conventional
3.
categories of investments such as government bonds, and company shares.
Examples may include property and precious metals such as gold.
88 92021 | Our Model Portfolio Service 2021 | Our Model Portfolio Service
How our Model Portfolio Service can help you
“
Our role is simple: we are investment
managers, responsible for creating
1. As one of the UK’s leading investment management and managing your investment
companies, we can use our size and scale to find cost portfolio. To achieve this, your
efficiencies and pass these down to you.
money will be invested across a
number of funds which themselves
2. Our service combines the strength of our own highly-
have thousands of holdings,
experienced fund managers along with our ability and structured in a way that aims to
skill to select the best in class solutions in the wider deliver long-term capital growth
market, meaning we always aim to pick the most while enhancing diversification.
”
appropriate investments for your needs.
Justin Onuekwusi
3. Our model portfolios can be held within your Head of Retail Multi-Asset Funds, Asset Allocation
general trading account, as well as a wide range of tax
wrappers including ISAs, offshore bonds and self-
invested personal pensions.
4. We have designed these portfolios with your needs
in mind, which means they aim to meet a wide range
of different investment goals, including growth and
income.
10 112021 | Our Model Portfolio Service
An experienced, expert team
Justin Onuekwusi Graham Moles Francis Chua
Head of Retail Multi-Asset Funds Head of DC & Retail Solutions Strategy, Solutions Fund Manager
Justin is a fund manager within the Multi-Asset Funds Graham was appointed Head of DC & Retail Solutions Francis is responsible for LGIM’s multi manager funds
team, leading on the management of the Model Portfolio Strategy in September 2020. He has particular expertise and assists in the management of the Model Portfolio
Service as well as our retail and risk-profiled multi-asset in risk management, asset allocation and strategy, and Service and the multi-index funds. Francis joined LGIM in Contact us
funds. Prior to joining LGIM in August 2013, Justin was a will bring significant experience in improving investor October 2016 from Aviva where he was a senior For further information about LGIM, please visit lgim.com or contact your usual LGIM representative
fund manager with Aviva Investors' multi-asset team, outcomes of the Model Portfolio Service. investment analyst. At Aviva, Francis was responsible for
combining both strategic and dynamic asset allocation the Aviva pension schemes, assisting in implementation
Graham joined LGIM in 2007, moving to the Solutions
with manager selection in the construction of multi-asset of the investment strategies, which had emphasis on
Group in 2009 and spending the majority of his time
portfolios. Justin is a CFA Charterholder and also holds financial risk management and investment manager
working on creating strategies that meet the complex and
the Investment Management Certificate. selection, as well as asset class and manager research.
unique requirements of individual clients.
Important information
Please remember the value of your investment and any income from it may fall as well as rise and is not guaranteed.
You may get back less than you invest.
Recommended investment period: medium to long term, ideally five years or more. The views expressed within this
document are those of Legal & General Investment Management, who may or may not have acted upon them. Legal
& General Investment Management is authorised and regulated by the Financial Conduct Authority and is the
Aimee Bowkett Aristide Goualin Peter Boakes Investment Adviser to this authorised unit trust. Issued by Legal & General (Unit Trust Managers) Limited. Registered
in England and Wales No. 1009418. Registered office: One Coleman Street, London EC2R 5AA.
Assistant Fund Manager Investment Specialist Solutions Strategy Manager, Solutions Authorised and Regulated by the Financial Conduct Authority No. 119273. We are members of the Investment
Aimee is an Assistant Fund Manager for LGIM’s Asset Ari works closely with the multi-asset fund managers to Peter uses his expertise in strategy, asset allocation and Association. All features described in this document are those current at the time of publication and may be
changed in the future. Nothing in this document should be construed as advice and it is therefore not a
Allocation strategies, assisting on the portfolio provide the distribution team with investment updates and risk management to deliver client-focused analytics recommendation to buy or sell investments. If in doubt about the suitability of this product, you should seek
management of the Model Portfolios Service, as well as insights in relation to the Model Portfolio Service and our across LGIM's offering, including the Model Portfolio professional advice. No investment decisions should be made without first reviewing the key investor information
document of the Fund (“KIID”) which can be obtained from www.legalandgeneral.com.
our multi-asset funds. other multi-asset funds. He joined LGIM in 2014 and has Service. He joined LGIM in 2012 on the graduate training
This document is only directed at investors resident in jurisdictions where this fund is registered for sale. It is not an
held relationship management roles working with programme before joining the Solutions team in April offer or invitation to persons outside of those jurisdictions. We reserve the right to reject any applications from
Aimee joined LGIM in 2016, originally as an Investment outside of such jurisdictions.
institutional DB and DC pension schemes and their 2014.
Specialist within the Multi-Asset Funds team where she © 2021 Legal & General Investment Management Limited. All rights reserved. No part of this publication may be
consultants.
focused on the team’s retail proposition. Previously, she reproduced or transmitted in any form or by any means, including photocopying and recording, without the written
permission of the publishers.
worked at AXA Investment Managers as a fixed income
product specialist.
RE141332021
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