BlackRock wins £30bn Scottish Widows mandate
BlackRock has won over a quarter of a £109bn Scottish Widows mandate following a competitive tender process, as the battle for the remaining £79bn in assets continues.
Announced today (12 October), BlackRock was selected by Scottish Widows' owner, Lloyds Banking Group, to manage £30bn of assets in index strategies on behalf of its clients.
This is a portion of the £109bn asset management deal Lloyds terminated with Standard Life Aberdeen (SLA) in February, on the grounds of competition between the insurers.
In addition to the £30bn mandate, Scottish Widows said it is pursuing a strategic partnership with BlackRock for alternative asset classes, risk management and investment technology.
The management of the assets will begin upon conclusion of the current arbitration process with SLA, or when the existing contract expires, Lloyds said.
Earlier this month, Schroders emerged as one of the frontrunners in battle for the £109bn Scottish Widows mandate, and JP Morgan and Goldman Sachs have also been competing to manage the assets.
Scottish Widows chief executive Antonio Lorenzo said BlackRock demonstrated "global market-leading capabilities and deep expertise in the UK market".
"The partnership will ensure that Scottish Widows and the group can deliver good investment outcomes for its customers over the coming years," he added.
A BlackRock spokesperson added: "We look forward to partnering with Lloyds Banking Group and to serving its clients to provide investment solutions that will help it achieve its financial goals."
The full £109bn allocation is one of the UK's largest ever withdrawn from a single client, accounting for about a third of the total assets that Aberdeen brought to Standard Life as part of their £11bn merger in August 2017.
Lloyds said it is close to finalising arrangements for the remaining assets, and that it will provide an update "in due course".
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