AI enters its political phase
Artificial intelligence has spent the past several years primarily as a technology and investment story. It is now becoming a political one, with key implications for US credit investors.
About us
L&G – Asset Management, America has invested on behalf of our institutional clients since 2006. We are the US division of a global platform that has been helping clients achieve their goals for 189 years.1 With approximately $1.617 trillion in AUM, L&G today is the ninth largest asset manager in the world as measured by total worldwide AUM.2,3
In the US, we draw on broader L&G’s heritage of expertise and full global power as we seek to innovatively solve complex challenges for our clients and improve client outcomes. Our investment philosophy and processes are rooted in deep credit and risk management experience, a solutions-oriented approach and a relentless focus on improving client outcomes over the long term, reflecting our parent company L&G’s purpose:
“Investing for the long term. Our futures depend on it."
Celebrating 20 years of asset management in US
This year marks a significant milestone for our business: 20 years of asset management in Chicago. What began in 2006 as a small, ambitious team in a Chicago suburb is today a firm with $288.1 billion assets under management and nearly 270 team members committed to helping our clients achieve their long-term financial goals.
Our capabilities
In the US, we offer a broad range of investment strategies and solutions across public and private assets. Our capabilities are designed to meet clients’ long-term needs.
Insights
Our Q4 MSCI rebalancing predictions
Ahead of each quarter’s MSCI World rebalancing, we assess the accuracy of our predictions for the prior quarter’s rebalancing and release our predictions for upcoming changes to the index. For the third quarter, we got all 29 of our predictions correct. However, we erred on the side of caution given some uncertainty during the initial phase of the pricing window, causing us to miss on some of the deletions.
Following the financing: A wider lens on IG private credit
Investment-grade (IG) private credit does not exist in isolation. Borrowers increasingly have multiple markets available to finance the same business, asset or investment program, with options spanning public bonds, private placements, securitized structures and other financing channels. For IG private credit investors, we believe this makes a broader view across fixed-income markets increasingly valuable.
Looking beyond the label: Unpacking the US Agg’s securitized allocation
For many public pension plans, the Bloomberg US Aggregate Bond Index (the “Agg”) serves as the default reference point for core fixed income. Investors are often aware of the Agg’s nearly 50% allocation to US Treasuries. Less obvious is that while the benchmark is broad by design, its securitized allocation may be narrower—and more concentrated—than the label suggests, excluding a meaningful portion of the investable universe. For public plans seeking income and diversification from core fixed income, that distinction matters.
Why this Fed hiking cycle may not matter
Markets are once again focused on the Federal Reserve. The Fed last week raised rates for the first time since 2023, inflation is still above target, and investors are debating whether one hike becomes two, three or more, with four hikes currently priced in. But the bigger question is whether this particular hiking cycle is likely to matter for inflation or the economy. Our take, as I explain in a new blog: It may restore Fed credibility, but it is unlikely to materially change the inflation or economic backdrop, creating potential opportunities for investors.
IG private credit: A public-market complement
Improved pension funding is changing how many defined-benefit plans invest. As plans move from closing deficits toward protecting surpluses, their priorities increasingly resemble those of insurers: generating contractual income, aligning assets with liabilities and diversifying fixed-income exposure without taking uncompensated credit risk. We believe investment-grade (IG) private credit can fit naturally into that transition, offering predominantly fixed-rate assets across the maturity spectrum, alongside issuers and financing structures not commonly available in public bond markets.
News and media
L&G breaks ground on multifamily community in Concord, MA
L&G’s Asset Management business in the US and Taurus broke ground on a new two-building, 201-unit multifamily community at 292–294 Baker Avenue in Concord, Massachusetts. The ceremony brought together local officials, community representatives and project partners to celebrate the start of site work on the development.
Jason Shoup was a panelist at FundForum
During the panel discussion, the group addressed timely topics, including how CIOs are navigating risk and opportunity across public and private markets in the current environment. Against a backdrop of ongoing uncertainty, the conversation underscored the importance of staying flexible, considering the full opportunity set, and remaining disciplined in portfolio construction.
Dan Dreher Discusses Growing Insurer Demand for Securitized Credit
Dan Dreher, Solutions Strategist, was featured in Longevity & Mortality Investor, discussing the increasing allocation by US life insurers to securitised credit as they seek greater yield, diversification, and duration. He highlights the structural drivers behind the trend, evolving regulatory considerations, and the factors insurers should evaluate when assessing securitised investment opportunities.
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1. L&G – Asset Management, America, a Delaware corporation, is a wholly-owned subsidiary of Legal & General Investment Management United States Holdings, Inc. (“US Holdings”), which itself is a wholly owned subsidiary of L&G – Asset Management Limited. L&G – Asset Management Limited is a financial services holding company wholly-owned by Legal & General Group PLC, (“L&G”), a publicly-traded company in the United Kingdom (“U.K.”) that was founded in 1836. Unless otherwise stated, references herein to "L&G", "we" and "us" are meant to capture the global conglomerate that includes Legal & General Investment Management Ltd. (a U.K. FCA authorized adviser), Legal & General Investment Management America, Inc. (a US SEC registered investment adviser), Legal & General Investment Management Asia Limited (a Hong Kong SFC registered adviser), Legal & General Investment Management Japan KK (licensed by the FAS in Japan), and LGIM Singapore Pte. Ltd. (licensed by the MAS in Singapore).
2. Pensions & Investments online. https://www.pionline.com/data-rankings/largest-money-managers/pi-largest-money-managers-2026-full-list/. Rankings are calculated using AUM of December 31, 2025. No compensation was provided to P&I for consideration in the ranking process. Legal & General Investment Management America, Inc. (d/b/a L&G – Asset Management, America”, “LGIM America” or “LGIMA”) is a wholly-owned subsidiary of Legal & General Investment Management United States (Holdings) Inc., which is a wholly-owned subsidiary of L&G – Asset Management Limited.
3. Global AUM as of June 30, 2026. Assets tallied biannually. “Global AUM” aggregates the assets managed by Legal & General Investment Management Ltd. (“L&G – Asset Management” or “LGIM”), L&G – Asset Management, America, Legal & General Investment Management Asia Limited (“LGIM Asia”) and LGIM Singapore Pte. Ltd. (“LGIM Singapore”). The AUM includes the value of securities and derivatives positions. AUM figures converted using the spot rate at the relevant date.
Disclosures
This material is intended to provide only general educational information and market commentary. Views and opinions expressed herein are as of the date set forth above and may change based on market and other conditions. The material may not be reproduced or distributed. The material is for informational purposes only and is not intended as a solicitation to buy or sell any securities or other financial instrument or to provide any investment advice or service. Legal & General Investment Management America, Inc. does not guarantee the timeliness, sequence, accuracy or completeness of information included. Past performance should not be taken as an indication or guarantee of future performance and no representation, express or implied, is made regarding future performance.
Certain information contained in this document constitutes “forward-looking statements,” which can be identified by the use of forward-looking terminology such as “may,” “will,” “should,” “seek,” “expect,” “anticipate,” “target,” “project,” “estimate,” “intend,” “continue,” “believe,” the negatives thereof, other variations thereon or comparable terminology. Due to various risks and uncertainties, actual events or results or the actual performance of the Fund may differ materially from those reflected or contemplated in such forward-looking statements.