a very clever move by Virgin21 Mar 2018 09:02
Tue, 20th Mar 2018 08:57
RNS Number : 2608I
Virgin Money Holdings (UK) PLC
20 March 2018
THIS ANNOUNCEMENT INCLUDES INSIDE INFORMATION
20 March 2018
VIRGIN MONEY HOLDINGS (UK) PLC (the "Company" or "Virgin Money")
VIRGIN MONEY AND ABERDEEN STANDARD INVESTMENTS AGREE TO ESTABLISH A NEW JOINT VENTURE FOR THE PROVISION OF ASSET MANAGEMENT SERVICES TO CUSTOMERS
� The proposed joint venture will combine Virgin Money's brand and retail distribution expertise with Aberdeen Standard Investment's (ASI) strength in asset management together with access to the market-leading technology and digital expertise of ASI
� The joint venture is expected to transform Virgin Money's retail investment proposition, driving significant growth in assets under management and capital-light returns
� It is anticipated that ASI will acquire 50 per cent of Virgin Money Unit Trust Managers Limited1 with the transaction expected to complete by the end of 2018
Virgin Money and ASI are delighted to announce that they have agreed in principle to enter into a new strategic joint venture for the provision of asset management services to Virgin Money customers. As part of the joint venture, ASI will provide fund management services and access to its state-of-the-art digital technology.
Virgin Money currently has over 200,000 retail investment customers and �3.7 billion in assets under management. The proposed joint venture with ASI will broaden Virgin Money's retail investment proposition.
It will also extend ASI's strength and depth in providing customer focused diversified solutions to Virgin Money's existing investor base and leverage the strength of both brands to increase assets under management over time.
Jayne-Anne Gadhia, Chief Executive at Virgin Money, said: "Our new partnership with Aberdeen Standard Investments will bring together two outstanding innovative brands. We look forward to using our brand and customer reach, combined with ASI's strength in asset management and its digital capability, to provide a market-leading customer proposition.
"This mutually beneficial relationship will give our customers a broader fund choice and the tools and capability to invest for the future with confidence. As a result, it offers a compelling proposition for our customers and offers excellent value for our shareholders. It is expected to generate significant growth in assets under management, drive additional capital-light returns and to be game-changing for our investment business over the longer term."
Martin Gilbert, Co-Chief Executive at Aberdeen Standard Investments, said: "We're delighted to be partnering with Virgin Money to develop their retail investment business. Their customer focus mirrors that of Aberdeen Standard Investments and we look forward to working together and sharing a strong and profitable relationship over many years t