Lloyds Banking Group will pay Invista Real Estate Investment Management (Invista REIM) a total of £3.1 mln for early termination of its fund management activities on behalf of the group, HBOS. The HBOS Funds will be transferred to Lloyds on 6 May 2011, with Lloyds paying Invista £2.6 mln on completion with a further £0.5 mln to be paid in June 2011 subject to certain closing requirements.

Lloyd Banking Group first announced in October that it planned to transfer a £2.4 bn (EUR 2.7 bn) fund management contract from Invista to Scottish Widows Investment Partnership (SWIP), its investment asset manager. The moved prompted a decision by Invista REIM to sell all its assets and return the proceeds to its shareholders.

Invista has managed funds on behalf of HBOS, and more recently Lloyds following its acquisition of HBOS, since Invista demerged from HBOS and listed on London's junior AIM market in 2006.

At end-June 2010, Invista had £5.4 bn (EUR 6.2 bn) of assets under management which generated a total annual revenue £13.7 mln. Of this the HBOS Funds contributed £2.4 bn of assets under management and £5.3 mln of revenue.