Standard Life Aberdeen has been awarded a contract to provide multi-manager funds to clients of Skipton Building Society’s £4.6 billion investment service.
Skipton, the fourth largest building society in the UK, will act as distributor for five new funds being added to the £13.9 billion MyFolio range, run by Bambos Hambi and James Millard’s multi-manager team.
Abderdeen Standard Investment’s global head of distribution Campbell Fleming said: ‘We are delighted that Skipton Building Society has chosen to adopt our new MyFolio Index range, as a core part of its investment offering for retail investors.’
The mandates will offer a series of risk-weighted options opting across a range of asset classes, with the managers taking exposure via passive funds.
The current range of funds bills investors an annual management charge of between 0.07% and 0.4%. It was not immediately clear where the passive mandates would sit within that spread.
Skipton head of financial advice Matthew Leach said: ‘We’ve offered a financial advice service for over 30 years and have helped thousands of customers make plans for the future. I’m really pleased we now have Aberdeen Standard Investments on board to help us drive this forward even more’.
In full year numbers last month, Aberdeen Standard reported that outflows increased to £40.9 billion in 2018. Redemptions were up on last year’s £32.9 billion and pushed fee-based revenue down 11% from £2.1 billion to £1.9 billion year-on-year.
Parent Standard Life Aberdeen reported pre-tax operating profits were marginally down from £660 million to £650 million. The company said it has delivered cost efficiencies from the merger ahead of schedule, saving £175 million of the planned £350 million.