Equities By Region Finance and Banking UK

Lloyds share price: Goldman Sachs joins race for lender’s £109bn funds contract

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Goldman Sachs has joined the race to manage Lloyds Banking Group’s (LON:LLOY) £109 billion of assets, Sky News has reported. The news comes after the bailed-out lender moved to pull out of the contract from Standard Life Aberdeen (LON:SLA) earlier this year.

Lloyds’ share price has advanced in today’s session, having added 0.50 percent to 63.66p as of 13:38 BST. The advance is largely in line with the broader UK market, with the benchmark FTSE 100 index currently standing 0.56 percent higher at 7,745.26 points. The group’s shares have lost more than eight percent of their value over the past year, as compared with about a 2.7-percent rise in the Footsie.

GS joins race for Lloyds contract

Sky News reported today that Goldman Sachs Asset Management (GSAM) was participating in a second round of bidding for Lloyds’ investment management contract. Blackrock, JPMorgan Asset Management and Schroders are aid to be the other parties bidding for the mandate, the destination of which is expected to be decided during the summer.

The FTSE 100 group moved to pull out £109 billion of assets from Standard Life Aberdeen earlier this year, arguing that the merger between Standard Life and Aberdeen Asset Management had resulted in its assets “being managed by a material competitor”.

City sources told the newswire that that Martin Gilbert, co-chief executive of SLA, had held an initial meeting with a senior Lloyds executive to discuss the pending arbitration process in recent weeks.

Analysts on bailed-out lender

Goldman Sachs, which sees Lloyds as a ‘sell,’ set a price target of 58p on the shares today, while last week, Credit Suisse, which has a ‘buy’ rating on the FTSE 100 lender, set a valuation of 85p. According to MarketBeat, the FTSE 100 group currently has a consensus ‘hold’ rating and an average price target of 75.45p.

As of 14:00 BST, Monday, 04 June, Lloyds Banking Group share price is 63.62p.

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