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ASI, Virgin Money to create new JV for asset management services

BBR Staff Writer Published 21 March 2018

Virgin Money has agreed to establish a joint venture (JV) with Aberdeen Standard Investments (ASI), the investment arm of Standard Life Aberdeen, to provide asset-management services to its customers.

Under the JV, ASI will offer fund management services and access to its advanced digital technology.

As per terms of the deal, ASI is anticipated to purchase a 50% stake in Virgin Money Unit Trust Managers (VMUTM) for an upfront cash payment in excess of £40m. VMUTM is Virgin Money’s investment and pension business.

The new JV will help Virgin Money to offer customers with access to a range of funds and solutions at a competitive cost.

The proposed JV will aggregate Virgin Money’s brand and retail distribution expertise with ASI’s capabilities in asset management.

The transaction is expected to be completed by the end of this year.

At present, Virgin Money serves more than 200,000 retail investment customers and has £3.7bn in assets under management.

Virgin Money chief executive Jayne-Anne Gadhia said: “Our new partnership with Aberdeen Standard Investments will bring together two outstanding innovative brands.

“We look forward to using our brand and customer reach, combined with ASI’s strength in asset management and its digital capability, to provide a market-leading customer proposition.”

ASI co-chief executive Martin Gilbert said: “Their customer focus mirrors that of Aberdeen Standard Investments and we look forward to working together and sharing a strong and profitable relationship over many years to come.”

Virgin Money provides savings, mortgages, credit cards, current accounts, currency services, pensions, investments and protection products to the customers in the UK.

ASI, which is the asset management business of Standard Life Aberdeen, has 50 relationship offices to serve clients in 80 countries.

With more than 1,000 investment professionals, ASI manages €638bn of assets across the world.


Image: Aberdeen Standard Investments co-chief executive Martin Gilbert. Photo: courtesy of Standard Life Aberdeen.