Blackrock today won a £30bn investment contract in Lloyds Banking Group-owned Scottish Widows.
The asset manager will invest the pension company’s funds in index strategies while also seeking to establish a strategic partnership to collaborate in risk management, alternative asset classes and innovative investment technology, Lloyds said.
The money forms part of a £110bn pot managed by previous Scottish Widows partner Standard Life Aberdeen (SLA), and Blackrock cannot begin investing the fund until Lloyds concludes an arbitration process with its predecessor.
Lloyds started withdrawing its assets from SLA in June after Standard Life merged with Aberdeen last year.
The merger prompted Lloyds to review its Scottish Widows wealth business, leading to it deciding to withdraw its assets from SLA after deciding it had become a “material competitor”.
It handed SLA a 12-month notice period to terminate their arrangement, which expires in June 2019, but the pair are now engaged in an arbitration process.
Scottish Widows boss Antonio Lorenzo said: “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.
“The partnership will ensure that Scottish Widows and the group can deliver good investment outcomes for its customers over the coming years.”