Standard Life, Lloyds settle ‘fund row’

Bloomberg

Lloyds Banking Group Plc and Standard Life Aberdeen Plc have reached a settlement in what was one of the most high-profile disputes in the UK fund management industry’s history.
Lloyds, which wanted to pull a 104 billion-pound ($129 billion) mandate, will pay the asset manager 140 million pounds in cash as compensation, according to a statement from Standard Life.
It will also leave about 35 billion pounds of the total until at least April 2022, some 30 billion pounds of which will be managed in passive portfolios and the remainder in real estate funds.
“It’s positive that Standard Life has some revenue compensation, but on the other hand it doesn’t solve the fundamental problem that the business is still shrinking,” said Charles Graham, a senior analyst for Bloomberg Intelligence. “Standard Life Aberdeen is still losing control over another block of assets which is not good news.”