From the fourth quarter of this year, Schroders will assume responsibility for the assets, which were previously managed by F&C Asset Management, from the firm’s UK business.
Meanwhile Friends Life is taking a further £2.3bn of sterling fixed income assets from F&C to be managed in house by its asset management arm Friends Life Investments (FLI). This brings the assets that FLI has brought in house to more than £20bn since it launched in 2012.
“Schroders has excellent credentials across the investment spectrum, generating superior outcomes in equity and multi asset management,” said Andy Briggs, group chief executive at Friends Life.
“Importantly, our two organisations share a commitment to innovation and putting customer needs first. We believe FLI’s expertise in the sterling government and credit markets, combined with the multi-asset and equity skills of Schroders, offer an exciting investment proposition for our existing and future customers.”
Schroders views the move as recognition of its multi-asset and equities investment proposition.
Mike Dobson, chief executive of Schroders, said: “This partnership is another important step in the development of our multi-asset business and brings new assets to a number of capacity unconstrained equity strategies. In addition to this stable pool of long-term assets we look forward to working with Friends Life to develop investment products and solutions for its retail and corporate pension fund customers.”
Friends Life is owned by Resolution, which was set up by Clive Chowdery to buy underperforming life insurers. The firm plans to adopt the Friends Life brand and drop the Resolution name, while Chowdery himself is stepping down as a non-executive director.
Resolution today reported a 59% jump in pre-tax operating profit last year, heralding the completion of its restructuring programme.
In an earnings statement, Resolution said it had met key financial targets for 2013 and achieved £160m of cost savings during a three year restructuring.
The firm said it is now focused on establishing itself as a “leading scale player” in Britain's life and pension market, and it is appropriate in this new phase to move away from a restructuring brand.
