L&G Wants Half Its Money Overseas by 2028—Here’s Why That Matters
Let’s talk about Legal & General—or L&G, if you’re like me and hate typing long names. This British financial heavyweight just dropped a bombshell: they want 50% of their investments outside the UK by 2028. That’s a huge shift for a company that’s basically been married to the British economy for ages. But here’s the thing—it makes total sense when you think about it.
I mean, look at the world right now. Would you keep all your money in one country? Didn’t think so.
Why L&G’s Suddenly Looking Abroad
Right now, about 70% of L&G’s money is parked in the UK. That’s like eating fish and chips every single day—eventually, you’ll want some variety. Here’s what’s pushing them out of their comfort zone:
- Not Putting All Eggs in One Basket: Brexit’s still causing headaches, and let’s be honest—the UK economy isn’t exactly setting the world on fire these days. Spreading investments globally? That’s just smart risk management.
- Where the Growth Is: Places like India and China—they’re the new kids on the block with serious potential. Meanwhile, Europe and the US? More like that steady but kinda boring uncle at family gatherings.
- Keeping Up With the Joneses: Aviva and Prudential are already doing this. L&G’s basically that friend who shows up late to the party but still wants to have fun.
And get this—a PwC study last year found nearly 70% of UK money managers are doing the same thing. When everyone’s zigging, you don’t want to be the last one zagging.
How They’ll Actually Pull This Off
L&G’s not just talking big—they’ve got a real plan. Here’s the breakdown:
- Where They’re Going: 40% in North America (safe bet), 35% in Asia (higher risk, higher reward), and 25% in Europe (because old habits die hard).
- How They’ll Do It: Buying into stuff like Indian solar farms and American tech—with a big focus on being “green” because that’s what everyone cares about now.
- The Timeline: They want 15% more international stuff by 2025. Baby steps first, you know?
“We’re not giving up on Britain—we’re just making smarter bets worldwide,” said L&G’s CEO António Simões. Which sounds nice, but let’s be real—it’s totally about giving up on Britain a little bit.
This Won’t Be Easy—Here’s Why
Look, expanding globally sounds great in boardroom presentations, but the real world’s messy:
- Paperwork Nightmares: Try investing in India—it’s like doing taxes while riding a unicycle.
- Political Drama: US and China aren’t exactly besties these days. One trade war could ruin everything.
- Big Fish Already There: BlackRock’s everywhere, and China’s got its own versions of L&G that know the local game better.
And honestly? L&G’s kind of… old-school. Can they move fast enough in markets where rules change daily?
What This Means for Regular People
If you’ve got L&G shares, this could be good—more growth, less risk. But if you’re counting on them for your pension? Might be some bumps along the way.
Analysts seem cautiously hopeful. As Flora Wang from Barclays put it: “They’re late, but they might just pull it off.” Classic British understatement there.
This Is Bigger Than Just Investments
It’s not just about moving money around. This ties into:
- Looking Good: Ditching coal investments while funding solar in Vietnam? That’s great PR.
- Playing Together Nicely: Their insurance arm could use these new international connections.
So… Will This Work?
Honestly? Who knows. It’s a bold move for a conservative company. The first big overseas deal they make will tell us a lot—will they go big or play it safe?
One thing’s for sure: the next few years will be interesting to watch. And by interesting, I mean either really successful or a total disaster. No pressure, L&G.
If You Want to Nerd Out More
Source: Financial Times – Companies