Fidelity International has acquired Legal & General Investment Management’s (LGIM) UK Personal Investing business.
The LGIM UK Personal Investing business comprises almost 300,000 customers with £5.8bn ($7.6bn, €6.4bn) assets under management.
It will be folded into Fidelity Personal Investing, which has 280,000 customers with £20.3bn AUM.
A statement from Legal & General confirmed that the sale “will not impact LGIM’s intermediary retail business, clients or associated pension and investment products which will continue to operate as normal”.
The transaction is expected to complete in the next 12 months. Financial details were not disclosed.
What it means for customers
On transfer, customers will pay the same or less than they do currently; and, as part of Fidelity Personal Investing, they will gain access to the full capability of its investment and pension platform, the firm said.
This includes its entire range of over 3,000 funds, shares, investment trusts and exchange-traded funds which can be held in an Isa, Sipp or Investment Account.
They will also benefit from Fidelity’s online guidance services, its range of investment tools; as well as market news, daily insights and in-depth analysis to stay up to date with the latest investment news.
Scale and operational capacity
Stuart Welch, global head of personal investing and advisory, Fidelity International, said: “This is an exciting acquisition for us. It follows our recent purchase of Cavendish Online Investments Limited and reflects our ambition and commitment to the UK direct investor market.”
Michelle Scrimgeour, chief executive at LGIM, added: “This transaction is a positive step for LGIM and particularly for our direct to consumer business.
“It optimises the strategic fit between two highly-regarded organisations and in particular supports customers, who now gain Fidelity International’s scale and operational capacity in these specific products while continuing to benefit from the LGIM investment expertise which underpinned their original product purchase.”