Lloyds share price: Group awards £30bn investment contract to BlackRock

Assets form part of £109bn mandate lender is pulling out of SLA

Lloyds share price: Group awards £30bn investment contract to BlackRock

Lloyds Banking Group (LON:LLOY) has selected BlackRock to manage £30 billion of assets, the bailed-out lender has announced. The assets are part of the £109-billion portfolio which the FTSE 100 group is pulling out of Standard Life Aberdeen (LON:SLA).

Lloyds’ share price has jumped in London in today’s session, having added 1.70 percent to 58.88p as of 10:29 BST. The stock is outperforming the broader UK market, with the benchmark FTSE 100 index currently standing 0.70 percent higher at 7,055.90 points. Lloyds’ shares have added some 11 percent to their value over the past year, as compared with about a 6.8-percent dip in the Footsie.

£30bn contract awarded to BlackRock

Lloyds’ Scottish Widows unit announced in a statement today that BlackRock has been selected to manage £30 billion of assets in index strategies. The group said that management of the assets will start upon conclusion of the current arbitration process with Standard Life Aberdeen or when the existing contract expires. 

“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,” Antonio Lorenzo, Chief Executive of Scottish Widows and Group Director of Insurance & Wealth, commented in the statement.

Lloyds further noted that it was also pursuing a strategic partnership with BlackRock including collaboration in alternative asset classes, risk management and investment technology.

Group finalising arrangements

Today’s statement comes after it recently emerged that Schroders (LON:SDR) was poised to beat BlackRock in the auction of the £109-billion portfolio. Lloyds noted in today’s statement that it was near to finalising arrangements in respect of the remaining £80 billion of assets and will provide an update in due course. Schroders meanwhile confirmed earlier this week that it was in talks with Lloyds over working together in the wealth sector. 

As of 10:41 BST, Friday, 12 October, Lloyds Banking Group share price is 58.95p.

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