LGIM launches "competitively priced" model portfolio service with ESG option

LGIM model portfoliosLegal & General Investment Management (LGIM) has launched a ‘model portfolio service’ with passive, active and ESG elements.

The service is aimed at UK financial advisers and offers growth and income model portfolios with varying risk profiles.

The firm said pricing, which stands at a six basis-points initial annual management fee, is “deemed highly competitive".

LGIM’s asset allocation team and its ‘solutions’ team work together on the proposition. The model portfolio service is headed overall by Justin Onuekwusi, head of retail multi-asset funds at LGIM.

An index option offers exposure to a broad range of ETFs, while an ESG-focused model portfolio will invest in ESG funds, including LGIM’s Future World fund range.

Finally, a blended model portfolio will invest in active funds managed by LGIM and third-party managers

There are also four income-focused model portfolios.

James Crossley, head of UK sales at LGIM, said the launch was a reflection of demand from financial advisers for “competitively priced and flexible model portfolio solutions” and that LGIM would be able to use its scale to “disrupt” the market.

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