SECURITIES AND EXCHANGE COMMISSION
Washington, D.C.20549
FORM 6-K
Report of Foreign Private Issuer
Pursuant to Rule 13a-16 or 15d-16
of the Securities Exchange Act of 1934
12 August, 2009
LLOYDS BANKING GROUP plc
(Translation of registrant's name into English)
5th Floor
25 Gresham Street
London
EC2V 7HN
United Kingdom
(Address of principal executive offices)
Indicate by check mark whether the registrant files or will file annual
reports
under cover Form 20-F or Form 40-F.
Form 20-F..X..Form 40-F.....
Indicate by check mark whether the registrant by furnishing the information
contained in this Form is also thereby furnishing the information to the
Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.
Yes .....No ..X..
If "Yes" is marked, indicate below the file number assigned to the
registrant in connection with Rule
12g3-2(b): 82- ________
Index to Exhibits
Item
No. 1 Regulatory News Service
Announcement, dated 12 August 2009
re: Asset
Management Plans Announced
LLOYDS BANKING GROUP
ANNOUNCES ASSET MANAGEMENT
PLANS
Lloyds Banking Group
announced today that it
has concluded a strategic review of its asset management
businesses
which will lead to some structural changes in the
business
,
including the sale of Insight Investment
Management Limited (Insight)
.
The Group has
a strong investment management
business and
is the largest bancassurance provider
in the
UK
. It sees
significant opportunities to
build
on
its success
given its investment expertise, strong brands and range of
highly
effective distribution channels
.
The main conclusions of the strategic review are:
-
The Group intends
to transfer the investment management of the
funds sourced from the Group's
Halifax
and Bank of Scotland bancassurance
businesses
,
the
Bank of Scotland
wealth management
operation and
the
Clerical Medical intermediary
franchise
from Insight Investment to Scottish Widows
Investment Partnership (SWIP)
.
-
SWIP will become a centre of excellence
for the Group's asset management activity. Based
in
Edinburgh
, SWIP currently has £83 billion
of
assets under management and, after the intended
transfer of
approximately £42 billion
from Insight, this will increase to
approximately £125 billion.
-
Separately, and independently of this transfer, the
Group
is announcing an agreement in principle to
sell
Insight Investment
to
The Bank of New York Mellon Corporation
.
T
his sale will comprise Insights's
external fund management operation which
manages
assets of
approximately £
80
billion for pension schemes, third party distributors,
intermediaries
and other corporates.
The deal, for
a total consideration of £235
million, comprising
cash consideration of £200
million
and equity consideration of £35
million, is expected to complete in
the
final quarter of this
year
.
SWIP
- a
centre of excellence
for asset management
Bringing together the Group's asset management business under
SWIP
will
provide significant scale benefits and reinforce
SWIP's
position as a dynamic research-driven asset manager,
providing a broad range of high quality products to both
the
Group
's insurance and wealth clients
and
,
equally importantly
,
its
external clients.
Under the
leadership
of
Dean Buckley
,
the Group
expect
s
to increase
its
investment management
capability
in
Edinburgh
over time to reflect the enlarged scale of
SWIP's
business.
The Group is consulting
with
the unions about the sale and the transfer
.
Until these consultations are complete, the precise colleague
impact will not be known. However, it is
anticipated that as part of this
asset
management consolidation there
will be some role reductions.
Jo Dawson, Wealth and
International D
irector, Lloyds Banking Group said:
"
As Lloyds Banking Group continues to develop and grow, both in
the
UK
and internationally
, it was essential that
we undertook a thorough and robust
review of our asset management businesses
and future plans
. Both SWIP and Insight are strong and well established asset
managers but we believe Insight is better able to focus on developing its
specialist
external franchise outside the Group.
SWIP has been
managing funds successfully for Lloyds
TSB cust
omers since 2000 as well as for a growing range
of
alliances, joint ventures and clients
both in the
UK
and abroad.
By positioning
SWIP as
a centre of excellence for the Group's
asset management
activity we will
create strong and sustainable value for our
clients
and shareholders
."
Michael Oliver
+44 (0) 20 7356 2167
Director of Investor Relations
Email: michael.oliver@ltsb-finance.co.uk
Douglas Radcliffe
+44 (0) 20 7356 1571
Senior Manager, Investor Relations
Email: douglas.radcliffe@ltsb-finance.co.uk
Shane O'Riordain
+44 (0) 20 7356 1849
Group Communications Director
Email: shane.o'riordain@lloydsbanking.com
Mark Elliott
+44 (0) 20 7356 1517
Email: markelliott@hbosplc.com
FORWARD LOOKING STATEMENTS
This announcement contains forward looking statements with
respect to the business, strategy and plans of the Lloyds Banking Group, its
current goals and expectations relating to its future financial condition and
performance.
By their nature, forward looking statements involve risk and
uncertainty because they relate to events and depend on circumstances that will
occur in the future.
The Group's actual future results may differ materially from
the results expressed or implied in these forward looking statements as a result of
a variety of factors, including UK domestic and global economic and business
conditions, the ability to derive cost savings and other benefits as well as to
mitigate exposures from the acquisition and integration of HBOS, risks concerning
borrower quality, market related trends and developments, changing demographic
trends, changes in customer preferences, changes to regulation, the policies and
actions of governmental and regulatory authorities in the UK or
jurisdictions outside the UK, including other European
countries and the US, exposure to regulatory scrutiny, legal proceedings or
complaints, competition and other factors.
Please refer to the latest Annual Report on Form 20-F filed
with the US Securities and Exchange Commission for a discussion of such
factors.
The forward looking statements contained in this announcement
are made as at the date of this announcement, and the Group undertakes no
obligation to update any of its forward looking statements.
Signatures
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has
duly caused this report to be signed on its behalf by the undersigned, thereunto duly
authorized.
LLOYDS BANKING GROUP plc
(Registrant)
By: M D Oliver
Name: M D Oliver
Title: Director of Investor Relations
Date: 12 August 2009