Lloyds and Schroders to launch wealth management JV

23rd Oct 2018 14:42

(Sharecast News) - Lloyds Banking Group and Schroders have announced plans to launch a financial planning business aimed at affluent customers.The companies said on Tuesday that they are entering into a strategic partnership that will combine Schroders' investment and wealth management expertise and technology capabilities with Lloyds' significant client base, multi-channel distribution and digital capabilities.Lloyds will own 50.1% of the joint venture, while Schroders will own the rest."The JV will address the growing gap in the advice market through a personalised, advice-led proposition, backed by world-class investment expertise and best in class technology," they said in a statement.As part of the JV, Schroders will be appointed as the active investment manager of around £80bn of the Scottish Widows and Lloyds insurance and wealth related assets.Lloyds chief executive Antonio Horta-Osorio 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."Schroders CEO Peter Harrison 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 £80bn of assets for Lloyds' and Scottish Widows' clients."James Rainbow, co-head of UK intermediary at Schroders, will be chief executive of the joint venture, while Antonio Lorenzo, chief executive of Scottish Widows and group director of insurance & wealth, will be chairman.Responding to press speculation, Schroders confirmed earlier this month that it was in talks with Lloyds with a view to working closely in parts of the wealth sector.