3rd Oct 2018 15:26
LONDON (Alliance News) - The Financial Times reported Wednesday Schroders PLC is poised to beat American investment manager BlackRock Inc in the battle to manage a GBP109 billion portfolio of assets from Lloyds Banking Group PLC.
According to the FT, Schroders offering Lloyds a "sweetener" in the form of "some control" of its Cazenove Capital wealth arm could be the deciding factor.
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".
Standard Life Abderdeen is demanding a GBP250 million break-fee from Lloyds, FT reported. This has "caused concerns" at Schroders, who believe the more Lloyds is forced to pay, the less money will be available for the new mandate.
If Schroders wins the Scottish Widows contract, it will have seen off Blackrock, Goldman Sachs Asset Management and JPMorgan Asset Management.
https://www.ft.com/content/f578d160-c668-11e8-ba8f-ee390057b8c9
Shares in Schroder were up 2.1% Wednesday at 3,041.00 pence each. Lloyds shares were trading up 1.5% at 58.34p each. Standard Life Aberdeen shares were down 0.1% at 299.90p each.
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