- Shares in Standard Life Aberdeen dive after Lloyds announces withdrawal of assets.
- Lloyds will pull out £109 billion held on behalf of Scottish Widows, the pension business it owns.
- Lloyds was the firm’s biggest single client, and its £109 billion stake represents around 17% of Standard Life Aberdeen’s assets under management.
LONDON – Shares in Standard Life Aberdeen, one of the UK’s largest asset management firms, dived on Thursday after it was announced that Lloyds Bank plans to withdraw a £109 billion portfolio held.
In an announcement to the stock market, Standard Life Aberdeen said that Lloyds has informed it of plans to withdraw the assets, managed on behalf of Scottish Widows, the pensions business owned by Lloyds, because following the recent merger of Standard Life and Aberdeen Asset Management, it is now a direct competitor.
“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,” Antonio Lorenzo, Scottish Widows’ CEO said in a statement.
Lloyds was the firm’s biggest single client, and its £109 billion stake represents around 17% of Standard Life Aberdeen’s assets under management.
Here’s the statement from Standard Life Aberdeen:
“LBG and Scottish Widows have informed SLA that Scottish Widows and LBG’s Wealth business intend to review their long term asset management arrangements including those services that are currently undertaken by certain legacy Aberdeen entities under arrangements covering in aggregate c£109 billion of assets under management (the “AUM”) and agreed by Aberdeen with LBG at the time of Aberdeen’s acquisition of Scottish Widows Investment Partnership from LBG in 2014.”
“We are disappointed by this decision in the context of the strong performance and good service we have delivered for Lloyds Banking Group, Scottish Widows and their customers. We will be discussing the implications of this with Lloyds and Scottish Widows,” Keith Skeoch and Martin Gilbert, the co-CEOs of Standard Life Aberdeen said.
SLA’s shares cratered at the open following the announcement, falling almost 9%, before recovering. By 8.30 a.m. GMT (3.30 a.m. ET) shares are now down around 5%.
Here’s the chart:
Standard Life Aberdeen is the largest British asset manager, looking after assets worth £646 billion in total. The firm was formed in 2017 when Aberdeen Asset Management and Standard Life merged in a deal worth around £11 billion.
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