Legal & General Investment Management (LGIM) has launched NavGuide, an innovative complete investment service for smaller schemes in the UK Defined Benefit pensions market.
The service provides schemes with tailored investment advice, the initial design and constant evolution of a bespoke portfolio, online monitoring and funding level tracking, as well as seamless transition to buy out. It uses a proprietary technology platform to help LGIM analyse individual schemes’ unique circumstances quickly and efficiently, enabling LGIM to deliver bespoke solutions much more cost-effectively.
Mark Johnson, Head of Institutional Clients at LGIM, said “Better, cheaper and faster aren’t usually associated with DB pension solutions, but that is what we hope schemes will experience with NavGuide.
“We’ve designed NavGuide to help smaller DB pension schemes – an area often overlooked by the industry – on their investment journey. These schemes will now be able to use NavGuide technology to access LGIM’s market-leading portfolio management specialists and L&G’s insurance expertise in a one-stop cost-effective solution.”
NavGuide allows smaller schemes to consolidate their investments and gain access to LGIM’s economies of scale. With more than £1 trillion of assets under management, LGIM is already the largest manager of pension fund assets in the UK. This latest development reiterates the firm’s commitment to driving innovation in the pensions market and helping DB schemes of all sizes to achieve better outcomes.
“This ground-breaking technology-led solution reflects the ambition of our team to support all elements of the UK DB pensions market,” said Tim Dougall, Head of Fiduciary Management at LGIM. “The pandemic has increased pressure on DB pension schemes and highlighted the need to better manage risks and make assets work harder, whilst still controlling costs. Solutions exist but have previously been very difficult for smaller schemes to access. NavGuide aims to change that, and bring the benefits of highly efficient diversified portfolios, bespoke risk management, and stress-free buy out to schemes of all sizes.”