Legal & General Investment Management customers would be able to access funds and shares that be held in SIPPS or investment accounts
Legal & General Group has agreed the sale of its personal investing business to Fidelity International in a deal worth nearly £6 billion.
Fund manager Fidelity previously had around 280,000 customers and £20.3 billion in assets under management. The acquisition of Legal & General Investment Management’s (LGIM) personal investing arm sees it more than double its customer base, adding 300,000 customers along with £5.8 billion assets under management.
The assets are held in legacy ISA, junior ISA, as well as general investment account products invested in LGIM funds. Fidelity will now take charge of the administration of customer accounts, customers will remain invested in LGIM funds, with LGIM continuing to earn an investment management fee.
Fidelity said that LGIM customers will continue to pay the same or less than their current rate and would be able to access 3,000 funds, investment trusts, exchange-traded funds and shares that be held in ISAs, SIPPS or investment accounts.
In a statement, LGIM said: The transaction therefore gives customers the best of Fidelity International’s large-scale administration and the LGIM investment expertise that they chose.
Stuart Welch, Global Head of Personal Investing and Advisory at Fidelity, said the deal was exciting and reflected the company’s “ambition and commitment to the UK direct investor market.”
Welch added: Our wealth and retirement planning services, guidance service and tools will help those who want to make the most of their retirement savings and investments. We look forward to welcoming LGIM's customers and helping them meet their financial goals.
The deal is expected to be completed at some point within the next 12 months. The amount paid by Fidelity for the business’ consumer book has not been disclosed.