The insurance business is due to redeem £12.2 billion in equity and multi-asset mandates and a further £2.3 billion in sterling fixed income mandates from F&C over the course of the year.

Friends Life formerly owned as much as 52% of the investment business, but the two companies have been steadily disentangling their former involvement.

Bank of Montreal agreed a £708 million takeover bid for F&C at the end of January. Assets under management at F&C fell 4.9% last year as investors, including Friends Life, withdrew £13.3 billion.

‘This partnership is another important step in the development of our multi-asset business and brings new assets to a number of capacity unconstrained equity strategies,’ said Schroders chief executive Mike Dobson.

‘In addition to this stable pool of long-term assets we look forward to working with Friends Life to develop investment products and solutions for its retail and corporate pension fund customers.’