ABERDEEN Standard Investments has secured a deal to advise on £3.6 billion of assets for Virgin Money Unit Trust Managers.

The global fund management arm of Standard Life Aberdeen hailed the appointment as the next stage of its joint venture with Virgin Money. It emerged in January that Standard Life Aberdeen will pay at least £40 million for a near-50 per cent stake in Virgin Money’s retail investment business.

The new deal will see ASI manage £3.6bn of assets under a range of portfolios on behalf of Virgin Money Unit Trust Managers and its clients.

Martin Gilbert, chairman of ASI, said: “The appointment of ASI as investment adviser for these five funds is a significant step in developing our joint venture with Virgin Money. Our wide range of investment capabilities, including multi-asset and quantitative investing, means we are well placed to advise on these portfolios and work with Virgin Money on additional investment solutions to meet the needs of its customers and those of its parent CYBG.”

Separately, ASI said yesterday that it has entered into a proposed, 50:50 joint venture with Gresham House, a specialist alternative asset manager. The venture relates to Gresham’s Strategy Public Equity operation, which specialises in identifying undervalued smaller companies.

The two parties believe there is a substantial investment opportunity at the smaller end of the quoted market.

Peter McKellar, global head of private markets at ASI, said: “The establishment of this joint venture is in reaction to client demand for exposure to the increasing opportunities in strategic public equity.”