Scottish Widows hands £30bn fund contract to BlackRock after kicking Standard Life Aberdeen off mandate

BlackRock has won a bidding war to manage £30bn of Scottish Widows’ index strategies after parent company Lloyds terminated a major contract with Standard Life Aberdeen to run the money.

Aberdeen Asset Management had managed nearly £110bn in Scottish Widows Investment Partnership funds prior to its merger with Standard Life.

However, Lloyds said it thought the merger brought Aberdeen into competition with Scottish Widows, so cut the combined firm off the mandate.

Scottish Widows’ £109bn mandate fight down to BlackRock and Schroders

The companies have been in arbitration proceedings since, with Standard Life Aberdeen contesting the legality of the decision, arguing that since it sold its own life arm to Phoenix, it could not be in competition with Scottish Widows.

After a lengthy tender process, BlackRock has now been chosen to run £30bn of the funds. It will also enter a “strategic partnership” with Scottish Widows where the companies will work together on “alternative asset classes, risk management and investment technology”.

What happens to the remaining £80bn of funds is also close to being finalised, Scottish Widows says.

Scottish Widows chief executive Antonio Lorenzo says: “BlackRock has been selected following a competitive tender process in which it clearly demonstrated its global market leading capabilities and deep expertise in the UK market. The partnership will ensure that Scottish Widows and the group can deliver good investment outcomes for its customers over the coming years.”

Recommended

3

Sipp provider hits back at FOS as court battle starts

Legal representatives for Berkeley Burke have claimed the Financial Ombudsman Service has misapplied the law to the Sipp provider in a court battle that kicked off today. The judicial review of a FOS decision against the provider is expected to have wide ranging implications, as it could establish with greater certainty whether Sipp providers have […]

Scotland-Flag-Scottish-700x450.jpg
1

RBS considers name change after decade of struggles

The Royal Bank of Scotland may look to rebrand after continued reputational damage stemming from a difficult decade since the Global Financial Crisis, according to the Times. RBS chair Howard Davies told the Times the name of the bank is now under review as it looks to move focus away to investing in its other […]

Inside Fundsmith’s new investment trust

Last month, star manager Terry Smith announced he was throwing £25m of his own money behind a new investment trust, Smithson. Ahead of its launch, Money Marketing editor Justin Cash sat down with Simon Barnard and Will Morgan, the fund’s managers, to talk strategy, as well as their thoughts on some of the hottest topics […]

Insurance File Generic 480

Reassuringly focused on claims

By Ross Jackson, senior protection marketing manager We’re sure you’ll have heard your customers say ‘But insurance companies don’t pay claims’ when giving a reason for not wanting to take out protection. In fact, our State of the Protection Nation research showed that 27 per cent of consumers asked didn’t think protection providers paid out […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment

    Close

    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm

    Email: customerservices@moneymarketing.com