23rd Oct 2018 14:32
LONDON (Alliance News) - Schroders PLC and Lloyds Banking Group PLC have formed a strategic partnership to create a jointly-owned wealth management business, the companies said Tuesday.
The partnership will combine Schroders' investment and wealth management expertise and technology capabilities with the bank's client base, multi-channel distribution and digital capabilities.
The companies said partnership will allow Schroders to expand into the strategically important UK wealth management market and help Lloyds to accelerate the development of its financial planning and retirement business.
Schroders and Lloyds have agreed to establish a joint venture, owing 49.9% and 50.1%, respectively. Lloyds will transfer GBP13 billion of assets and associated advisers from its existing wealth management business to the joint venture and GBP400 million to to Schroders' UK wealth management business.
In addition, Schroders has been appointed as the investment manager of around GBP80 billion of the Scottish Widows and Lloyds insurance and wealth related assets, which includes the GBP13 billion to be transferred to the new wealth management joint venture and the GBP400 million to be transferred to Schroders' UK wealth management business. The asset manager's appointment will be for at least five years.
"Wealth management is a strategic priority for Schroders. In combining our award-winning technology and world-class investment expertise with Lloyds' significant client base and digital capabilities, we are creating a strategic partnership which is exclusively focused on the evolving needs of UK savers and investors," said Schroders Chief Executive Peter Harrison.
"This provides a strong platform for growth and is a further step in the delivery of our strategic objectives," Lloyds Chief Executive Antonio Horta-Osorio said.
Schroders shares were trading 3.0% lower on Tuesday at 2,683.00 pence each, while Lloyds shares were down 0.4% at 56.20p a share.
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