Scottish Widows said in a news release Friday that it had selected BlackRock to run the assets — part of £109 billion in wealth and retirement assets run on behalf of Scottish Widows and Lloyds Banking Group by legacy Aberdeen Asset Management entities.
In February, Lloyds Banking Group and subsidiary Scottish Widows said they were launching a review of their money management arrangements and had given notice to terminate investment arrangements with Standard Life Aberdeen over competition concerns. These concerns related to the merger last year between Standard Life and Aberdeen.
BlackRock will begin managing the assets following the conclusion of an ongoing arbitration process with Standard Life Aberdeen or when that contract expires. Lloyds Banking Group "remains confident in its rights to terminate the current asset management arrangements and expects the arbitration process to conclude early next year," the news release said.
Lloyds Banking Group is also pursuing a strategic partnership with BlackRock to include a collaboration in alternative asset classes, risk management and investment technology. Further details could not be learned.
"The partnership will ensure that Scottish Widows and the group can deliver good investment outcomes for its customers over the coming years," Antonio Lorenzo, CEO of Scottish Widows and group director of insurance and wealth, said in the release.
Lloyds Banking Group added in the release that it is close to finalizing arrangements regarding the remaining roughly £80 billion in assets.