Invista to be wound up after £2.4bn contract loss

Published 12th Oct 2010

Invista Real Estate Investment Management is to sell off all its assets and return capital to shareholders after Lloyds Banking Group transferred its largest fund management contract to Scottish Widows Investment Partnership.

The fund manager, spun out of HBOS’s wealth management arm in 2006 and listed on the London Stock Exchange, manages £2.4bn of assets for clients of HBOS including Halifax and Clerical Medical, out of total assets under management of £5.4bn.

HBOS is now part of Lloyds Banking Group, and following discussions on the future of the relationship, Lloyds decided to terminate the asset management agreement yesterday. SWIP is the investment management arm of Lloyds TSB.

Invista said this morning that during negotiations with Lloyds it had been undertaking a strategic review of its business, the result of which is that it will realise its assets, including its asset management business, and returning cash to shareholders.

Invista is 55% owned by Lloyds, with the Wellcome Trust owning a further 24% of its shares. Last year it was the subject of a takeover approach.

Shares in Invista dropped 4% to 37p in early trading this morning, giving the company a market capitalisation of £102m.

Source: ' Property Week '

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