Merger Information Update

20 March 2017

Keith Skeoch

Following the announcement of the proposed merger between Standard Life Investments and Aberdeen Asset Management, I said I would keep you updated. This afternoon, in an announcement to the London Stock Exchange, we have disclosed our approach to Organisation Design and the allocation of responsibilities between the co-CEOs, Martin Gilbert and I.

The Organisational Design will be aligned to the Combined Group’s strategy by:

  • Putting investments at the heart of the combined business;
  • Focussing on long-term client needs;
  • Diversifying across geographies, asset classes and client and customer channels;
  • Distributing through a combination of wholly owned businesses, joint ventures and strategic alliances;
  • Co-ordinating and effectively operating across all distribution channels;
  • Reducing costs and realising further efficiencies through simplification; and
  • Delivering on the integration objectives, including the targeted synergies.

As Co-CEOs, we will share responsibility for core aspects of the role such as the Executive Committee, developing and promoting the Combined Group’s strategy and objectives, and monitoring the operational performance and strategic direction. We will also have joint accountability for the post-merger Integration Programme.

I will have individual accountability for the day to day running of the fabric of the combined business including responsibility for Investments, Pensions and Savings, the India and China Insurance Joint Ventures, Operations, Finance, HR, Risk and Regulatory Culture, as well as the Legal and Secretariat functions.

Martin will have individual accountability for external matters including responsibility for International Activities, Distribution including client engagement and business development, Marketing and Corporate Development.

This merger between two leading asset managers with complementary strengths will create one of the world’s largest asset managers. It will have broad investment capabilities, including equities, fixed income, solutions, property and alternatives. Through our breadth of capability and depth of resource, we will offer clients more choice and world-class solutions.

Furthermore, these capabilities and our enhanced scale and financial strength, will ensure that the firm can attract and retain the best talent and also invest in the business. We expect to make further announcements regarding the composition of the proposed executive management teams of the combined group and senior executive responsibilities in due course.

Please do not hesitate to speak with your key contact if you have any questions. I believe the Combined Group will be better placed to help you and your clients achieve financial goals today and for years to come. Thank you for your continued support.

Keith Skeoch

Chief Executive