UK-based Legal & General is seeking to increase its assets under management in Asia to about $500bn as part of a broader effort to expand its overseas business, reported Reuters citing chief executive Antonio Simoes.
According to Simoes, Asia is the company’s quickest-growing international market and is expected to be central to its aim of lifting international AUM to more than half of the overall portfolio by 2028, from roughly 43% last year.
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The group currently manages $244bn of assets for Asian clients within its global total of $1.6tn.
“We’re very bullish on Asia right now,” he said, noting that the company has more than 50 employees across the region.
L&G’s shares have underperformed compared with UK rivals including Aviva during Simoes’ time in charge, as he has tried to win investor backing for his plan, noted the news agency.
Appointed chief executive in 2024, he has said he wants to raise performance, and shareholder returns by streamlining the 190-year-old British company.
Simoes said geopolitical strains and volatile markets linked to the Iran conflict were strengthening Asian client demand for broader international exposure across asset classes and regions.
“What the markets are pricing right now is a de-escalation of the conflict,” he said.
The wealth segment is now “the next frontier” for the company in Asia, Simoes said, after it initially established its position with sovereign wealth funds, pension schemes and other institutional investors.
He told Reuters in Hong Kong that L&G intends to build additional distribution partnerships to access wealthy Asian investors.
The company has five regional offices, located in Hong Kong, Singapore, mainland China, Tokyo and Australia.
Simoes said the move into Asian wealth management was already showing progress, with a partnership with J.P. Morgan Private Bank bringing in more than $1bn from clients in the region over one year.
He also said private market strategies were being prepared for Asia following the company’s acquisition of a 75% stake in private markets specialist Proprium Capital Partners.
Simoes said expansion would not reduce margins, with the company aiming for an average revenue margin of above 10 basis points by 2028, and preferably sooner, compared with 9 basis points at present.
Last month, L&G and Manulife Wealth & Asset Management (Manulife WAM) partnered to develop wealth and retirement solutions for clients in Europe, Asia, the US, Canada, and Bermuda.
