L&G had planned “accordingly” for a Brexit

Legal & General, one of the UK’s largest pension providers, has said it planned for a 50-50 probability of a Brexit ahead of last week’s referendum, and positioned its balance sheet accordingly, “to reduce risk for our customers and shareholders”. However, the firm’s share price fell by 13% between the close of market between Thursday and Monday evening. In a statement, the firm said: “We undertook a number of derisking actions in respect of our asset portfolios, including the traded equities held within our shareholder funds, before the referendum to mitigate our balance sheet against the downside risk of a “leave” vote.” Also included in the statement was a reference to surplus capital the firm has on its balance sheets to comply with the Solvency II directive, which came into force earlier this year. The firm has a Solvency II capital surplus of around £5 billion (€6 billion), which it says demonstrates its resilience to market volatility, “including that caused to date by the EU referendum outcome”. The firm’s shares closed up by 7.88% yesterday. ©2016 funds europe

Executive Interviews

INTERVIEW: Put your money where your mouth is

Jun 10, 2016

At Kempen Capital Management, they believe portfolio managers should invest in their own funds. David Stevenson talks to Lars Dijkstra, CIO of the €42 billion manager.

EXECUTIVE INTERVIEW: ‘Volatility is the name of the game’

May 13, 2016

Axa Investment Managers chief executive officer, Andrea Rossi, talks to David Stevenson about bringing all his firm’s subsidiaries under one name and the opportunities that a difficult market...


ROUNDTABLE: Beyond the hype

Oct 13, 2016

The use of smart beta investing continues to grow. Our panel, made up of both providers and users, discusses what the strategy actually means, how it should be used and the kind of pitfalls that may arise when using this innovative investment technique.

MIFID II ROUNDTABLE: Following the direction of travel

Sep 07, 2016

Fund management firms Aberdeen and HSBC Global meet with specialist providers to speak about how the industry is evolving towards MiFID II.