Latest news with #L&G
Spectator
4 days ago
- Business
- Spectator
Why is your pension fund so obsessed with net zero?
Legal & General is Britain's largest asset manager, with over £1 trillion on its books. Every pound it manages should be dedicated to achieving the highest possible returns. This matters a lot: L&G manages over five million pensions in the UK. But in recent years, the asset manager has been particularly concerned with fashionable causes, instead of being entirely focused on making sure your retirement is secure. That is why I recently attended their AGM. I wanted to learn why the board is wedded to net zero, despite their fiduciary duty to clients, and whether they would consider reprioritising saver returns instead. At the Q&A I highlighted that US competitors have dropped their net zero ambitions. Most have pulled out of the 'Net Zero Asset Owner Alliance' – a UN-led consortium of asset managers 'committed to decarbonising their investment portfolios and achieving net-zero emissions by 2050.' L&G – along with most other British pension fund managers – is still a part of this alliance. But their commitment to decarbonising their portfolios and advocating for 'public policies, for a low-carbon transition' are premised on a net zero consensus that no longer exists. At the moment, roughly half of the public support either Reform or the Conservatives. Both parties oppose net zero by 2050. It is therefore reasonable to assume, as I told the board, that many with L&G pensions, do not want their retirement outcomes subordinated to the green agenda. In response, the board told me that its clients want to align with net zero by 2050. Whilst the board acknowledged that complex trade-offs exist, they did not explain what these were. Instead they doubled down, reaffirming their net zero commitment, before asserting that decarbonisation offers stellar investment opportunities. The problem is that these opportunities rely on government subsidy.
Business Mayor
20-05-2025
- Business
- Business Mayor
Legal & General acquires real estate investor in private assets push
Unlock the Editor's Digest for free Roula Khalaf, Editor of the FT, selects her favourite stories in this weekly newsletter. Legal & General, the British finance company that is one of Europe's largest asset managers, has acquired a real estate investor as part of a strategic push into private markets under chief executive António Simões. L&G, which manages £1.1tn in assets, has taken a 75 per cent stake in Proprium Capital Partners, a $3.5bn global real estate private equity group, the companies have confirmed. Under the terms of the deal, which is subject to regulatory approval, L&G will eventually acquire 100 per cent of Proprium. The value of the deal was not disclosed. The move is part of a broad strategic expansion by L&G into private markets following a restructuring of the FTSE 100 financial services business by Simões, who took on the top job last year. It comes after L&G poached Eric Adler from US insurer Prudential to lead its asset management division, after combining the unit with its private markets business. The deal marks the first acquisition under Adler, who is focused on growing L&G's asset manager and expanding into private markets globally. The UK-based financial services group wants to boost its private markets assets from about £50bn to £85bn and is targeting £500mn to £600mn in operating profits by 2028. L&G's latest acquisition underscores how traditional asset managers are seeking to expand into private markets in search of higher returns. Some of the world's largest asset managers — including BlackRock, Franklin Templeton and Capital Group — are expanding into private markets through acquisitions and partnerships with specialist providers. Private asset funds come with the potential to earn higher fees than for public market products, but expose clients to new risks. L&G will provide up to $300mn to support Proprium's funds as part of the deal. Proprium was spun out of Morgan Stanley's real estate special situations team in 2013. Its investments include Germany's A&O Hostels and pub group Admiral Taverns in the UK. About 60 per cent of Proprium's investments are in Europe, and the group also has a presence in Asia-Pacific. L&G says both regions are growth areas. L&G's real estate assets amount to about £22bn and include large-scale regeneration projects, industrial property and affordable housing. L&G also acquired an equity stake last year in US-based real estate investor Taurus, as it seeks to broaden its real estate business beyond the UK, where the bulk of its assets are focused. Adler said the deal would expand L&G's geographical presence and help to broaden its investment offering. Tim Morris and Philipp Westermann, co-managing partners of Proprium, said there was 'immense opportunity' in expanding into global real estate. The deal is set to close at the end of the year. As part of the agreement, Proprium's management team will continue to operate independently and will keep its current leadership structure, teams and investment process.
Times
10-05-2025
- Business
- Times
Pension funds could be forced to invest in UK projects
The government is set to give itself the power to mandate pension funds to invest cash in UK projects if they fail to comply with a voluntary pact due to be announced this week. A review, led by pensions minister Torsten Bell, is expected to recommend that the government is given the option to mandate pension fund investment, according to a source close to the government. The review will be published later this month after an agreement this week by more than 15 major pension fund investors — thought to include FTSE 100 giants L&G, Aviva, Phoenix and M&G — to invest up to 10 per cent of their assets in fast-growing companies and infrastructure, with half of that designated for the UK, by 2030.
Yahoo
12-04-2025
- Business
- Yahoo
City giant demands BP chairman's scalp over net zero retreat
City giant Legal & General (L&G) is demanding the scalp of BP's chairman over the oil giant's retreat from net zero. The FTSE 100 fund manager is refusing to support the re-election of chairman Helge Lund at the company's looming annual meeting and will vote against keeping him on for another year, which Lund has already announced will be his last year in charge. The move follows BP's recent reversal of its 2020 commitment to green energy, which had included a tenfold increase in low-carbon investment and a 40pc reduction in fossil fuel production by 2030. Over the five years since then BP had seen its shares plummeting, leaving it increasingly exposed to foreign takeovers. Lund originally supported that policy, however, a few weeks ago at BP's capital markets day, he and chief executive Murray Auchincloss reversed it. BP had gone 'too far and too fast', they said as both abandoned most of its green pledges and committed to indefinite annual increases in fossil fuel production. However, L&G said it strongly opposed that decision which 'represents a financially material and systemic long-term risk to our clients' portfolios'. It added: 'We are deeply concerned by the recent substantive revisions made to the company's strategy, coupled with the decision not to allow a shareholder vote on the newly amended climate transition strategy at the 2025 AGM.' L&G said it was pleased Mr Lund had decided to step down, but should not delay his departure till 2026. 'We view the recent announcement of Helge Lund's intention to step down as chair positively; however, we expect the succession process to follow a clearer and swifter timeframe than that currently posited by the company, to ensure an orderly and meaningful transition.' The move coincides with BP's announcement on Friday that it has lowered its outlook for gas production in the first quarter of 2025 while its debts are set to jump. The gas marketing and trading result is expected to be 'weak', BP told investors, primarily because of the sales of businesses in Egypt and Trinidad that the company completed at the end of the year. Both announcements come amid a campaign by activist US hedge fund Elliott for more change at the company – with predictions Mr Auchincloss could also be forced out. Elliott has taken a 5pc stake in BP. Ashley Kelty, of investment bank Panmure Liberum, said Mr Lund's 'long goodbye tour' would leave BP's board facing extra scrutiny with calls for a change in chief executive. 'Lund is to step down but since no successor has been identified he's hanging around until next year. Activist Elliott appears to be pushing for further change, and we think CEO Murray Auchincloss's position is becoming increasingly untenable,' he said. 'The investor response to the recent 'strategy reset' has been lukewarm and we are probably not alone in thinking that a new CEO is arguably needed alongside a major strategy reset to revitalise the company's performance.' Broaden your horizons with award-winning British journalism. Try The Telegraph free for 1 month with unlimited access to our award-winning website, exclusive app, money-saving offers and more. Sign in to access your portfolio
Telegraph
12-04-2025
- Business
- Telegraph
City giant demands BP chairman's scalp over net zero retreat
City giant Legal & General (L&G) is demanding the scalp of BP's chairman over the oil giant's retreat from net zero. The FTSE 100 fund manager is refusing to support the re-election of chairman Helge Lund at the company's looming annual meeting and will vote against keeping him on for another year, which Lund has already announced will be his last year in charge. The move follows BP's recent reversal of its 2020 commitment to green energy, which had included a tenfold increase in low-carbon investment and a 40pc reduction in fossil fuel production by 2030. Over the five years since then BP had seen its shares plummeting, leaving it increasingly exposed to foreign takeovers. Lund originally supported that policy, however, a few weeks ago at BP's capital markets day, he and chief executive Murray Auchincloss reversed it. BP had gone 'too far and too fast', they said as both abandoned most of its green pledges and committed to indefinite annual increases in fossil fuel production. However, L&G said it strongly opposed that decision which 'represents a financially material and systemic long-term risk to our clients' portfolios'. It added: 'We are deeply concerned by the recent substantive revisions made to the company's strategy, coupled with the decision not to allow a shareholder vote on the newly amended climate transition strategy at the 2025 AGM.' L&G said it was pleased Mr Lund had decided to step down, but should not delay his departure till 2026. 'We view the recent announcement of Helge Lund's intention to step down as chair positively; however, we expect the succession process to follow a clearer and swifter timeframe than that currently posited by the company, to ensure an orderly and meaningful transition.' The move coincides with BP's announcement on Friday that it has lowered its outlook for gas production in the first quarter of 2025 while its debts are set to jump. The gas marketing and trading result is expected to be 'weak', BP told investors, primarily because of the sales of businesses in Egypt and Trinidad that the company completed at the end of the year. Both announcements come amid a campaign by activist US hedge fund Elliott for more change at the company – with predictions Mr Auchincloss could also be forced out. Elliott has taken a 5pc stake in BP. Ashley Kelty, of investment bank Panmure Liberum, said Mr Lund's 'long goodbye tour' would leave BP's board facing extra scrutiny with calls for a change in chief executive. 'Lund is to step down but since no successor has been identified he's hanging around until next year. Activist Elliott appears to be pushing for further change, and we think CEO Murray Auchincloss's position is becoming increasingly untenable,' he said. 'The investor response to the recent 'strategy reset' has been lukewarm and we are probably not alone in thinking that a new CEO is arguably needed alongside a major strategy reset to revitalise the company's performance.'
