Public HTML RI reports - PRI reporting framework 2018

Lloyds Banking Group (Delisted)

PRI reporting framework 2018

Asset class implementation gateway indicators [OO 10 - 12] Peering questions [OO LE 01 - INF 03]

Investment policy [SG 01 - 04] Objectives and strategies [SG 05 - 06] Governance and human resources [SG 07 - 08] Promoting responsible investment [SG 09 - 11] Outsourcing to fiduciary managers and investment consultants [SG 12] ESG issues in asset allocation [SG 13 - 15] Asset class implementation not reported in other modules [SG 16 - 17] Innovation [SG 18] Communication [SG 19]

Indirect – Manager Selection, Appointment and Monitoring

Listed Equity and Fixed Income Strategies [SAM 01] Selection [SAM 02 - 03] Appointment [SAM 04] Outputs and outcomes [SAM 08 - 09]

Assurance

Assurance [CM1 01.1 - 01.7]

Export Public Responses

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Basic information

OO 01. Signatory category and services

01.1. Select the type that best describes your organisation or the services you provide.

Non-corporate pension or superannuation or retirement or provident fund or plan

Corporate pension or superannuation or retirement or provident fund or plan

Insurance company

Foundation

Endowment

Development finance institution

Reserve - sovereign or government controlled fund

Family office

Other, specify

01.3. Additional information. [Optional]

Lloyds Banking Group (LBG) has a combination of insurance and private banking investment activities. Insurance assets are by far the larger, so this will be the focus of our PRI reporting.

Where appropriate we will refer to our core asset manager, Aberdeen Standard Investments, who provide the fund management for the majority of our customer mandated funds.

Where reference is made to default options, that is the "Pension Investment Approaches", this is a low cost proposition, which is mainly structured around State Street Global Advisors (SSgA) tracker funds.

We will also refer to LBG's policies and organisational memberships where appropriate.

OO 02. Headquarters and operational countries

02.1. Select the location of your organisation’s headquarters.

United Kingdom

02.2. Indicate the number of countries in which you have offices (including your headquarters).

2-5

6-10

>10

02.3. Indicate the approximate number of staff in your organisation in full-time equivalents (FTE).

75000 FTE

02.4. Additional information. [Optional]

OO 03. Subsidiaries that are separate PRI signatories

03.1. Indicate whether you have subsidiaries within your organisation that are also PRI signatories in their own right.

Yes

03.3. Additional information. [Optional]

Lloyds Banking Group sold its investment management subsidiary Scottish Widows Investment Partnership (a PRI signatory since 2007) to Aberdeen Asset Management in 2014. Aberdeen are also a signatory to the PRI.

Aberdeen Asset Management PLC and Standard Life plc agreed to a merger, which occurred 14 August 2017, creating a combined company called Standard Life Aberdeen plc. The majority of Scottish Widows assets are managed by its investment business, Aberdeen Standard Investments.

OO 04. Reporting year and AUM

04.1. Indicate the year end date for your reporting year.

31/12/2017

04.2. Indicate your total AUM at the end of your reporting year, Exclude subsidiaries you have chosen not to report on and any advisory/execution only assets.

Total AUM
Total AUM	trillions	billions	millions	thousands	hundreds
Currency
Assets in USD
Assets in USD	trillions	billions	millions	thousands	hundreds

04.5. Additional information. [Optional]

The £148bn relates to the investment funds managed from within the Scottish Widows Insurance division of Lloyds Banking Group.

This year Wealth and Private Banking assets have moved into the Insurance division, bringing an additional £7bn of assets to the universe.

OO 06. How would you like to disclose your asset class mix

New selection options have been added to this indicator. Please review your prefilled responses carefully.

06.1. Select how you would like to disclose your asset class mix.

as percentage breakdown

as broad ranges

	Internally managed (%)	Externally managed (%)
Listed equity	0 0	>50% 51
Fixed income	0 0	10-50% 23
Private equity	0 0	0 0
Property	0 0	<10% 3
Infrastructure	0 0	0 0
Commodities	0 0	0 0
Hedge funds	0 0	0 0
Forestry	0 0	0 0
Farmland	0 0	0 0
Inclusive finance	0 0	0 0
Cash	0 0	10-50% 10
Other (1), specify	<10% 5	0 0
Other (2), specify	0 0	<10% 8

'Other (1)' specified

          Social Housing, Education and Infrastructure Loans

'Other (2)' specified

          Collective Investment Schemes

06.2. Publish asset class mix as per attached image [Optional].

06.3. Provide contextual information on your AUM asset class split. [Optional]

of the £148bn the assets are split:

Customer Funds: £83bn Multi Asset Funds, £41nb Single Asset Class Funds
Shareholder Funds; £14bn Annuity, £10bn General Insurance and other Shareholder

OO 07. Fixed income AUM breakdown (Private)

OO 08. Segregated mandates or pooled funds (Private)

OO 09. Breakdown of AUM by market

09.1. Indicate the breakdown of your organisation’s AUM by market.

Developed Markets	0% <10% 10-50% >50 %
Emerging, Frontier and Other Markets	0% <10% 10-50% >50 %
Total100%

09.2. Additional information. [Optional]

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