12th Oct 2018 10:18
LONDON (Alliance News) - US-based investment manager BlackRock Inc has won a mandate to manage a "chunk" of Lloyds Banking Group PLC's Scottish Widows portfolio, the Financial Times reported Friday.
According to the FT, BlackRock will manage GBP30 billion of the GBP109 billion portfolio with the remaining assets "still up for grabs".
Lloyds said it would pursue a "strategic partnership" with BlackRock on top of the GBP30 billion mandate, which the FT reported will include collaboration in alternative asset classes, risk management and investment technology.
https://www.ft.com/content/c46aae1c-cdf3-11e8-9fe5-24ad351828ab
Shares in Lloyds were up 1.4% Friday at 58.72 pence each.
Lloyds is looking for a new manager for its Scottish Widows portfolio of assets after it announced in February it would terminate its contract with current manager Standard Life Aberdeen PLC, citing at the time "competition concerns".
The FT earlier reported that Standard Life Aberdeen is seeking a GBP250 million break-fee.
In recent weeks, Schroders PLC looked poised to win the Scottish Widows assets after offering a "sweetener", in the form of entering into a wealth management joint venture with the bank.
The two FTSE-100 listed companies confirmed on Monday they were in discussions, with Lloyds expected to inject GBP13 billion into a potential new wealth management joint venture with Schroders.
The joint venture between the companies also would see Schroders taking on a GBP109 billion investment management contract from Lloyds-owned Scottish Widows. However, that would be reduced to GBP79 billion if GBP30 billion of the contract is awarded to Blackrock.
Schroders was up 0.2% at 2,888.00p on Friday.
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