Standard Life Aberdeen loses St James's Place ethical fund mandate

Pound Coins

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.

Read more: Lloyds sells off last of its holding in Standard Life Aberdeen for £344m

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.

Read more: Shareholders back Standard Life Aberdeen's £2bn insurance business sell-off

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.”

Full story: Standard Life Aberdeen loses St James's Place ethical fund mandate: City A.M.

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