Lloyds Banking Group plc, which is approximately 43% owned by the U.K. government, today announced that it has completed a strategic review of its asset management businesses, and will sell Insight Investment Management Limited to Bank of New York Mellon Corp. for £235 million, consisting of £200 million in cash and £35 million in stock. BNY Mellon said Insight will be combined with its existing asset management division, BNY Mellon Asset Management, which will have more than $1 trillion in assets under management. The sale is expected to be completed during the fourth quarter of 2009.
Lloyds’ funds that had been managed by Insight will now be managed by another Lloyds affiliate, Scottish Widows Investment Partnership (SWIP). SWIP currently has £83 billion of assets under management, which will increase to approximately £125 billion after the intended transfer from Insight. SWIP is based in Edinburgh, and will become a major center for Lloyds Banking Group’s asset management activity.