KUALA LUMPUR: Lloyd's Banking Group owned Scottish Widows has appointed BlackRock to manage  £30bil of assets in index strategies while it is also seeking a strategic tie-up with the world's largest asset manager.

According to a statement posted on its website on Friday, the awarding of the contract was after Scottish Widows and Lloyds Banking Group’s wealth business had reviewed their asset management arrangements.

“The management of the assets will commence upon conclusion of the current arbitration process with Standard Life Aberdeen or when the existing contract expires,” Scottish Widows said. 

Lloyds Banking Group said it remains confident in its rights to terminate the current asset management agreements and expects the arbitration process to conclude early next year.

“In addition to the £30bn mandate, the Group is pursuing a strategic partnership with BlackRock including collaboration in alternative asset classes, risk management and investment technology,” it said.

Commenting on the announcement, Antonio Lorenzo, the CEO of Scottish Widows and group director of insurance & wealth, 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.”

The group is also close to finalising arrangements for the remaining £80bn of assets that are within the scope of the asset management review, and will provide an update in due course.

Scottish Widows was founded in 1815 as Scotland’s first mutual life office and is one of the most recognised brands in the life, pensions and investment industry in the UK.