Aberdeen Standard Investments to run £3.7bn Virgin assets and take 50% stake in unit trust business

Strategic joint venture

Aberdeen Standard Investments (ASI) and Virgin Money are to establish a strategic joint venture in which ASI will take over the management of Virgin Money's £3.7bn retail assets, while also taking a 50% stake in the unit trust business.

The groups have agreed in principle to enter the joint venture which they said will combine Virgin Money's brand and retail distribution with Aberdeen Standard Investment's (ASI) scale in asset management and digital capabilities. Expected to complete by the end of 2018, the transaction will see ASI acquire 50% Virgin Money Unit Trust Managers, following an  upfront cash payment in excess of £40m. Virgin Money's 200,000 retail investment customers and £3.7bn in assets under management will transfer to the management of ASI, after previously being managed by DST (previously IFDS) and S...