Royal London strikes a deal worth £220m for Co-op’s life insurance and asset management arms, including the takeover of 5 sustainable screened funds, enhancing its offerings in the socially responsible investment market.
Developments in the socially responsible investment market
There has been a lot of corporate activity impacting the socially responsible investment fund market recently. The proposed purchase of Co-operative’s asset management business by Royal London announced today, follows Alliance Trust’s takeover of the Aviva SRI team, Quilters merger with Cheviot and the move by the Henderson Fund Management team to WHEB. But what will be the impact for investors of Royal London’s move?
As the UK’s largest mutual life and pension’s company, Royal London’s funds under management currently stand at approximately £50bn. This figure will increase to circa £70bn following the recent acquisition, swelling its customer base from 4 million to 6 million. Above all, the move will significantly impact the ethical funds industry. The Cooperative Insurance Society Fund (CIS) possess 5 sustainable screened funds totalling over £800m, which will move to Royal London, operating alongside its ethically screened bond fund which has been experiencing much success of late.
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