Our five strategic imperatives* are applied across all business units. The following illustrates them in action in the Investment management division.
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Imperative |
Activity | ||
|---|---|---|---|
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Financial Management |
Scalable business model displays high profitability, strong cash flow and high return on capital. | ||
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Diversified Business |
Successful diversification, growing core active management capability and risk management solutions alongside index tracking business. | ||
|
High Quality Products, Broad Distribution |
New business inflows into [LGIM]’s active fixed income funds of £2.7bn in 2009 (excluding cash), more than double the £1.1bn received in 2008. | ||
|
A Positive Customer Experience |
In 2009, 24% of new business inflows came from non-index fund clients, up from 14% in 2008. | ||
|
High Expectation Culture |
LGIM has a strong team based culture and won many awards in 2009 including the Financial News Client Service Team of the Year. | ||
FOCUS ON GOVERNANCE
LGIM’s governance approach is focused on protecting shareholders’ interests. Since many of our investments are held as part of an index-tracking mandate, individual stocks cannot be sold or assigned a reduced weighting. Instead, if we see a potential problem emerging in an investee company, our approach is to work with that company to ensure the best interests of its shareholders are maintained. To achieve this, we engage in dialogue with the company and if our differences are not reconciled, we will follow up with a vote which reinforces our position at the company’s Annual General Meeting. During the course of 2009, [LGIM] held 136 meetings with company chairmen and non-executive directors on a variety of governance issues. Our approach is steered by our adherence to the Combined Code of Corporate Governance and by the [ABI]’s Principles for Social, Ethical and Environmental investment.
