Last Friday, Blackrock won a £30 billion investment contract in Scottish Widows, a company that is owned by Lloyds Banking Group.
Lloyds said that the asset manager is set to invest the funds in the pension company in index strategies while also trying to establish a strategic partnership in order to collaborate in risk management, alternative asset classes and innovative investment technology.
The money forms part of a £110 billion pot that is managed by Standard Life Aberdeen (SLA), a previous partner of Scottish Widows, and Blackrock cannot start investing the fund until Lloyds closes an arbitration process with its predecessor.
Lloyds began withdrawing its assets from SLA last June after Standard Life merged with Aberdeen in 2017.
The said merger prompted Lloyds to conduct a review on its Scottish Widows wealth business, resulting in its decision to withdraw its assets from SLA after deciding that it had become a “material competitor.”
It handed SLA a 12-month notice period in order to terminate their arrangement, which is set to expire in June 2019, howver, the pair are now engaged in a process of arbitration.
Antonio Lorenzo, the boss of Scottish Widows, stated: “Blackrock has been selected following a competitive tender process in which it clearly demonstrated its global market leading capabilities and deep expertise in the UK market.”
He added: “The partnership will ensure that Scottish Widows and the group can deliver good investment outcomes for its customers over the coming years.”