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Scottish Widows and Lloyds Wealth to Terminate £109 Billion AUM Partnership with Standard Life Aberdeen
Scottish Widows and Lloyds Banking Group’s Wealth businesses have given notice to Standard Life Aberdeen to terminate their partnership to manage Scottish Widows and Lloyds Wealth assets of over £100 billion (estimated £109 Billion).
” Standard Life Aberdeen May Lose £109 Billion AUM “
In 2014, following the sale of Widows Investment Partnership, Scottish Widows and Lloyds Wealth have entered into the asset management partnership with Aberdeen. The partnership agreement allows Scottish Widows and Lloyds Wealth to terminate the contracts, if Aberdeen was have a change of control (ownership) with a material competitor.
In 2017, Aberdeen had completed a merger with Standard Life, which is a material competitor of Scottish Widows and Lloyds Wealth. When Aberdeen and Standard Life merger was announced, Scottish Widows and Lloyds Wealth had agreed to delay to exercise their termination rights for 6 months. During the period, all parties were to discuss in good faith ways to build a successful relationship and address the competition issue.
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As no agreement has been reached, Scottish Widows and Lloyds Wealth have decided to terminate their partnership agreements with Standard Life Aberdeen and to review their long-term asset management arrangements. There is no immediate changes for customers, and new arrangements will be implemented by 1st half of 2019.
Antonio Lorenzo, Chief Executive of Scottish Widows and Group Director of Insurance & Wealth:
“Given the merger of Standard Life and Aberdeen has resulted in our assets being managed by a material competitor, it is now appropriate to review our long-term asset management arrangements to ensure they remain up-to-date and that customers continue to receive good service and investment performance. Therefore, we will begin an in-depth assessment of the market to identify a long-term strategic partner, or partners, to manage the current £109bn of assets.”
Standard Life Aberdeen plc is a leading global investment company. We have operations in 50 locations worldwide and employ around 9,000 people. We are dedicated to helping our clients and customers invest for their future. Our expertise and resource enables us to offer a wide range of investment solutions and services designed to meet their needs today, tomorrow and for the longer term. We manage, administer and advise on £670 billion* of assets worldwide.
Standard Life Aberdeen plc is headquartered in Scotland. It has around 1.2 million shareholders and is listed on the London Stock Exchange. The Standard Life Aberdeen group was formed by the merger of Standard Life plc and Aberdeen Asset Management PLC on 14 August 2017.
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