In the US we’ve seen the same move towards passive investments as the UK. Assets in passive investment funds more than doubled in four years to $1.3 trillion of US investors’ assets. Similar issues are seen in other major economies. For example, the rising costs of defined benefit (DB) pension schemes affect companies in the US, the Eurozone and the UK.
Market globalisation helps us to diversify our business. Some US firms operate successfully in the UK. Until very recently, UK asset management companies had little penetration of US markets. Through our US liability driven investments (LDI) business we’re becoming a strong player in this important segment of the US market. However, the total North American market has $33 trillion in assets, with $19 trillion in US pension fund assets.
Growth in US pension assets
US pension fund assets 2013
US pension fund assets 2003
We’re a top 25 global asset manager, having increased international AUM by 302% from £15 billion in 2008 to £59 billion at the end of 2013. The US is a core market for our asset management business and we aim to build on our recent growth.
STRATEGIC RESPONSE: LGIM INTERNATIONAL EXECUTION