BlackRock and Schroders are the frontrunners to oversee about £109 billion for Lloyds Banking Group (LON:LLOY), Bloomberg has reported. The FTSE 100 group moved to pull the assets under management from Standard Life Aberdeen (LON:SLA) earlier this year.
Lloyds’ share price has slipped marginally into the red in today’s session, having given up 0.14 percent to 62.32p as of 14:45 BST. The stock is outperforming the broader market selloff which has seen the benchmark FTSE 100 index shed 0.85 percent to 7,596.78p so far today. The group’s shares have lost more than seven percent of their value over the past year, as compared with a near three-percent rise in the Footsie.
Lloyds £109bn mandate update
People with knowledge of the matter told Bloomberg that BlackRock and Schroders were the frontrunners to oversee Lloyds’ £109 billion of assets, with a decision expected in the third quarter. The sources noted that the group may select a sole winner or decide to split the mandate, with discussions remaining ongoing.
Lloyds invited bids for the contract earlier this year after ending an agreement with Standard Life Aberdeen which currently manages the money. The bailed-out lender had agreed to keep the funds, controlled by its Scottish Widows unit, with the asset manager for six months following the merger of Standard Life and Aberdeen Asset Management, which was completed in August last year.
Analysts on bailed-out lender
Deutsche Bank, which sees Lloyds as a ‘buy,’ lowered its price target on the shares from 72p to 62.40p today. According to MarketBeat, the bailed-out lender currently has a consensus ‘hold’ rating and an average price target of 74.67p. The FTSE 100 group is scheduled to update investors on its half-year performance on August 1.