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Lloyds to merge €13bn wealth arm in Schroders JV

By Mark Kleinman, City editor
Britain's biggest high street lender is to inject its ?13bn wealth management arm into a new joint venture with Schroders, the blue-blooded investment giant whose clients ?are said to include the Queen.
Sky News has learnt that Lloyds Banking Group is finalising the details‎ of the partnership ahead of an announcement by the two companies later this month.
The deal will see Lloyds owning 50.1%‎ of the new JV, with Schroders owning the rest, according to a source close to the deal.It will help reshape the City's vast wealth management sector by taking Schroders, an institution which traces its roots back to 1804, into the so-called 'mass affluent' customer demographic for the first time.Sources said the transaction would harness Schroders' technology and investment management capabilities and marry them with Lloyds' vast distribution network, fulfilling the strategic objectives of both partners.Taking the UK's biggest high street bank, which owns the Halifax network, deeper into wealth management services for millions of customers is a priority for Antonio Horta-Osorio, Lloyds' chief executive.It will be part of a three-pronged tie-up between the companies, with Schroders taking on a €109bn investment management contract from Lloyds-owned Scoottish Widows.That mandate is currently held by Standard Life Aberdeen‎ (SLA), but has been terminated by Lloyds in fractious circumstances after it argued that last year's €11bn merger of Aberdeen Asset Management with Standard Life had put the enlarged group in competition with it.The dispute between Lloyds and SLA‎ is now the subject of an independent arbitration process.
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