Wealth Manager - the site for professional investment managers

Register to get unlimited access to all of Citywire’s Fund Manager database. Registration is free and only takes a minute.

Aberdeen completes £550m Swip acquisition and targets cost-savings

Aberdeen completes £550m Swip acquisition and targets cost-savings

Aberdeen has completed the acquisition of Scottish Widows Investment Partners (Swip) and said it expects the deal to be earnings enhancing from year one as it looks to cut costs.

The acquisition, which creates a combined group with £324.5 billion in assets under management, will cost Aberdeen £550 million in total and see Swip’s parent Lloyds Banking Group take a 9.9% stake in the fund manager.

In a stock market update, Aberdeen said the integration of Swip will start immediately and is expected to take 24 months. It added that the deal will bring ‘significant cost savings’ although it is aiming to achieve a reduction in overheads ‘over and beyond the synergies from the Swip integration.’

In a separate announcement, Aberdeen said it has seen a further £3.9 billion of outflows in January and February although it estimates that these have dropped down to £0.2 billion in March. The group said inflows into emerging market debt, high yield and property have partly offset outflows from its Asian and emerging market equity funds.

Chief executive Martin Gilbert (pictured) said: ‘We are pleased to have completed this important acquisition as planned and on schedule, so that we can now commence the task of integrating Swip into the enlarged Aberdeen Asset Management group. We will immediately begin a structured migration of funds and platforms, whilst continuing to deliver an excellent investment performance for both existing and new clients.

‘The enlarged group is well placed to meet the needs of a diverse range of investors with a broad range of capabilities across both geographies and asset classes.

‘We look forward to developing our new strategic relationship with Lloyds and, on behalf of everyone at Aberdeen, I would like to welcome our new colleagues from Swip into the group.’

Aberdeen provided no guidance on any likely redundancies.

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.
Citywire TV
Play Navigating geopolitical risk with ETFs

Navigating geopolitical risk with ETFs

ETFGI’s Deborah Fuhr on how investors can use exchange-traded funds to position their portfolio.

Play Sarasin’s Boucher: why I like salmon with chocolate

Sarasin’s Boucher: why I like salmon with chocolate

Henry Boucher, manager of the £129 million Sarasin Food & Agriculture Opportunities fund, explains why he is gobbling up salmon and chocolate stocks.

Play Alibaba hype, the UK slowdown and opportunities in European sovereign bonds

Alibaba hype, the UK slowdown and opportunities in European sovereign bonds

Libby Ashby and leading wealth managers analyse what the Alibaba IPO hype means for Chinese equities, slowing growth of the UK economy and whether there’s anything left to play for in the European sovereign bond market.

Your Business: Cover Star Club

Profile: Barclays' former advisory boss on his move into property

Profile: Barclays' former advisory boss on his move into property

On paper, Rick Denton might have been expected to finish his career in banking

Wealth Manager on Twitter