Schroders and Lloyds announce wealth management strategic partnership and agreement to manage £80bn of Scottish Widows and Lloyds assets

October 24, 2018

Schroders plc (‘Schroders’) and Lloyds Banking Group (‘Lloyds’) announced that they are entering into a strategic partnership to create a market-leading wealth management proposition.

This strategic partnership will combine Schroders’ investment and wealth management expertise and technology capabilities with Lloyds’ significant client base, multi-channel distribution and digital capabilities.

For Schroders, the partnership will continue its expansion into the strategically important UK wealth management market, building on its core strengths in active investment management. It will also leverage Benchmark Capital’s (1) award-winning adviser platform technology.

For Lloyds, the partnership is in line with the strategic objectives outlined in its latest strategic review and will accelerate the development of its Financial Planning and Retirement business, and deliver significant additional growth.

This strategic partnership includes:

Financial Planning

High Net Worth Wealth Management

Investment Management

Lloyds and Schroders have also agreed to work together and potentially develop other strategic opportunities, including investment propositions and advice for Lloyds’ retail customers, for which Schroders would provide active asset management services.

António Horta-Osório, Group Chief Executive of Lloyds, said:

“I am delighted to be announcing this exciting partnership with Schroders and the creation of a new market leading wealth management proposition. This provides a strong platform for growth and is a further step in the delivery of our strategic objectives.”

Peter Harrison, Group Chief Executive of Schroders, said:

“Wealth management is a strategic priority for Schroders. In combining our award-winning technology and world-class investment expertise with Lloyds’ significant client base and digital capabilities, we are creating a strategic partnership which is exclusively focused on the evolving needs of UK savers and investors. I am also delighted that we have been entrusted to manage £80 billion of assets for Lloyds’ and Scottish Widows’ clients.”

 Antonio Lorenzo, Chief Executive of Scottish Widows & Group Director of Insurance and Wealth, said:

“The unique combination of two of the UK’s strongest financial services businesses will enable us to create a market-leading proposition which will benefit customers. The aim is to become a top three UK financial planning business within five years, given the significant growth opportunities in the financial planning and retirement market combined with the new company’s ambitious medium term growth strategy.”

(1) Benchmark Capital is 77% owned by Schroders.