Schroders and Lloyds Banking in Talks on Wealth Arm Business
(Bloomberg) -- Schroders Plc and Lloyds Banking Group Plc said they are in talks to work closely on the wealth management business as the fund manager vies to win a separate, coveted 109 billion pound ($143 billion) mandate from the British lender.
The companies in their statements on Monday made no mention of the portfolio mandate.
- Schroders is the front runner to win the right to manage the Lloyds portfolio though Blackrock Inc. isn’t out of the running, people with knowledge of the matter told Bloomberg last week.
- The U.K. bank invited asset managers to bid for control of the portfolio, to replace Standard Life Aberdeen Plc. The asset manager is getting out of the insurance business and has said that Lloyds doesn’t have the right to end the deal.
- Banks are expanding in wealth management to diversify their revenue streams and boost income as record-low interest rates squeeze margins.
- Schroders shares have declined 15 percent this year, and those of Lloyds have fallen more than 13 percent.