Virgin Money and Aberdeen Standard Investments form asset management JV

Under the terms of the agreed JV, ASI will buy 50% of Virgin Money Unit Trust Managers for more than £40m in cash, which is expected to result in an increase of around 40 basis points in Virgin's CET1.

Virgin Money currently has more than 200,000 retail investment customers and £3.7bn in assets under management. The proposed joint venture with ASI will broaden Virgin's retail investment proposition and extend ASI's strength and depth in providing customer-focused diversified solutions to Virgin's existing investor base. In addition, it will leverage the strength of both brands to increase assets under management over time.

Virgin Money chief executive Jayne-Anne Gadhia said: "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."

ASI's co-chief executive Martin Gilbert 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 to come."

At 0940 GMT, Virgin Money shares were up 0.4% to 265.50p.