BlackRock and Schroders are frontrunners to manage £109bn for Lloyds Banking Group’s Scottish Widows Investment Partnership funds, Bloomberg reports.
The London-based bank is set to make its decision in the third quarter of this year, after it invited bids for its contract at the start of this year after ending the agreement it had with Standard Life Aberdeen, Bloomberg adds.
Earlier this year, Standard Life Aberdeen hit back against Lloyds for terminating its investment management arrangement saying the merged company is not in competition with the bank.
Lloyds had originally seen Standard Life as a rival for the SWIP assets.
SLA’s statement said: “SLA has informed LBG that it does not agree that, following the merger of Aberdeen Asset Management and Standard Life, SLA was in material competition in the UK with LBG and that, therefore, SLA does not consider that LBG, Scottish Widows or their respective affiliates has the right to terminate the [investment management arrangements].”
BlackRock oversaw $6.3trn (£4.7trn) as at 31 December 2017 while Schroders manages £426.1bn as at 31 March 2018.