Family Investments is set to offer a £1.4bn mandate to Santander Asset Management after cancelling a four-year contract with New Star.
The agreement, set to come into force from 1 December, will see Santander manage assets made up of a range of life funds and unit trusts, including the unit trusts that underpin Family’s CTF offering.
Family Investments says the move follows a review of its investment strategy but it will be a blow to New Star, which had run the contract since February 2004.
John Reeve, chief executive of Family Investments, says: “We are committed to providing an investment structure with the best balance between risk and growth for our 900,000 customers.
“Following an extensive review of our investment strategy, we are very pleased to appoint Santander Asset Management as we believe they are well placed to achieve the returns we require.
“Their strong performance track record and highly experienced global team makes them the ideal choice to deliver long term benefits to all of our customers.”
Family Investments says Santander was one of ten managers asked to tender for the mandate following its strategic review.
New Star was first appointed as investment manager by Family in February 2004 for a four-year period and was reappointed in February 2008 on a rolling three-month basis.
Family Investments currently looks after the CTF accounts of around 500,000 children. New Star's assets under management were £19.1bn as at 27 August.
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