Insight deal completed as staff go
LLOYDS Banking Group yesterday cut another 120 staff as part of the completion of the £235m sale of its Insight Investment Management business to Bank of New York Mellon.
On another bleak day for banking jobs, Lloyds said 331 staff would move to BNY Mellon as part of the deal while 12 would be kept at its remaining investment management arm, Scottish Widows Investment Partnership (SWIP).
A statement from Lloyds said: “All affected colleagues have been briefed by their line manager. There will be approximately 120 role reductions by March 2010”.
Lloyds said it was working with unions over the redundancies and transfer of staff. The sale of Insight, announced in August, delivered indebted Lloyds £200m in cash and £35m in equity. The acquisition of Insight adds $133bn (£83bn) to BNY Mellon’s funds under management, pushing the total above the $1 trillion mark for the first time.
Jon Little, vice chairman of BNY Mellon Asset Management welcomed Insight’s “impressive” management team. London-based Insight specialises in liability driven investment, fixed income and absolute return for clients including some of the UK’s biggest pension schemes, corporates, insurance companies and local authorities.
Under the sale agreement Lloyds will transfer the investment management of the funds sourced from the Halifax and Bank of Scotland bancassurance businesses, the Bank of Scotland wealth management operation and the Clerical Medical intermediary franchise from Insight to SWIP.
The first tranche of 111 funds migrated from Insight to SWIP at the end of October.