Wealth Manager - the site for professional investment managers

Register free for our breaking news email alerts with analysis and cutting edge commentary from our award winning team. Registration only takes a minute.

Martin Gilbert hopes to win back £109bn mandate after insurance sale

Martin Gilbert hopes to win back £109bn mandate after insurance sale

Standard Life Aberdeen co-chief executive Martin Gilbert has said he is hopeful the sale of the insurance arm to Phoenix can help it win back the £109 billion mandate from Lloyds.

Last week Scottish Widows, which is owned by Lloyds, pulled its Scottish Widows Investment Partnership (Swip) funds from Standard Life Aberdeen, with the insurer suffering a £40 million impairment charge after it lost the mandate as well as a drop to its share price.

This morning Standard Life Aberdeen announced the £3 billion sale of its insurance arm to Phoenix – it was this insurance division which was cited as the reason for the mandate being taken away by Lloyds as it was a competitor to Scottish Widows.

A ‘contest’ is now being held for these £109 billion of assets with Lloyds chief executive Antonio Horta-Osorio saying earlier this week he is receiving ‘a lot of interest’ from asset managers as he ruled out Lloyds managing the money itself through a new asset management arm.

Scottish Widows chief executive Antonio Lorenzo said earlier this week Standard Life Aberdeen is welcome to participate in this contest if it addresses its insurance competition - which it now seems to have done.

‘Many people want to participate [in the contest]. We welcome Standard Life Aberdeen to participate if they fix their problem with competition. We are not thinking to address this internally,’ he said.

Speaking to journalists this morning Standard Life Aberdeen chief executive Gilbert said he is hopeful of still winning back this mandate following the insurance sale. 

‘Let me make it absolutely clear we have not done this transaction to solve the competition issues, we have a good relationship with Lloyds,’ he said. ‘I think it was more out of sadness than anything that we reached where we were. But we felt this was the right transaction for Standard Life.

‘If it helps us win the mandate we would be delighted but we did a good job for their policy holders and clients to I expect hopefully we will get a chance to re-tender.’ 

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 Boutique tapes: my business will never be sold

Boutique tapes: my business will never be sold

In the final part of our four part series we discuss consolidation and whether it's getting tougher for boutiques to survive.

Play Boutique tapes: are top managers better off at small firms?

Boutique tapes: are top managers better off at small firms?

In episode three of our series, boutique bosses discuss whether the best fund managers are more likely to thrive at smaller firms.

Play Boutique tapes: if you want a Ferrari, you have to pay for it

Boutique tapes: if you want a Ferrari, you have to pay for it

In the second part of our four-part series, boutique bosses are asked how they can justify the fees charged by active managers.

Read More
Your Business: Cover Star Club

Profile: how this boutique beat the big guns of wealth

Profile: how this boutique beat the big guns of wealth

This small west country offshoot of a local IFA scooped a 2018 Citywire award from beneath the noses of the national challengers

Wealth Manager on Twitter