Sky's Ian King explains the background to a tribunal fight that saw Standard Life Aberdeen going after one of its major customers.
It has felt at times as if little has gone right for Standard Life and Aberdeen Asset Management since they announced in March 2017 that they were merging.about whether this was a deal aimed at creating a company capable of enjoying strong growth or merely a defensive move.
That has obliged the company - which still has 1.2 million retail shareholders as a legacy of Standard Life's days as a mutual - to keep cutting costs and jobs. That is perhaps unsurprising given that shares of SLA have fallen from 407.75p on 14 August 2017, the day the merger was completed, to 266.15p as of Monday night.The whole active fund management industry is under siege as growing numbers of investors move to 'passive' investments, such as passive funds and Exchange-Traded Funds , which simply seek to replicate the performance of a stock index or a sector rather than outperform a benchmark.
SLA emerged victorious from a legal battle with Lloyds Banking Group that flared up directly as a consequence of the merger. SLA acquired a 20% stake in Phoenix, which is shortly to join the FTSE 100, as part of the deal but the sale, crucially, left SLA as a pure asset manager with no businesses in obvious competition with Lloyds.For SLA, it means compensation for the loss of business, which according to some analysts could be worth more than £300m.
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