FTSE 100-listed wealth group St James’s Place has stripped Standard Life Aberdeen of a mandate to manage its £277m ethical fund.
St James’s Place announced that Impax Asset Management would takeover the management of the fund which will be renamed the sustainable and responsible equity fund.
This is the second St James’s Place fund that Standard Life Aberdeen has lost, following the removal of a £1.3bn emerging markets fund from Aberdeen in 2016.
Standard Life merged with Aberdeen Asset Management last year in an £11bn deal which created Europe’s second-largest fund manager.
Part of the rationale for the deal was an attempt to stem fund outflows.
In February Lloyds Banking Group cancelled a £109bn contract with Standard Life Aberdeen, triggering a "material competition clause", arguing that the asset manager was now one of its rivals for UK business following the merger.
Separately, St James's Place said it was launching a diversified assets fund which will be managed by investment firm KKR.
Chris Ralph, chief investment officer, at St James’s Place said: “KKR has a world-leading, global investment team and will be responsible for targeting growth opportunities in a number of markets, and will provide exposure to private equity, real estate, infrastructure, as well as private and public credit.”