Investments Strategy


UKFI’s overarching objective is to manage the Government’s shareholdings commercially to create and protect value for the taxpayer as shareholder and to devise and execute a strategy for realising value for the Government’s investments in an orderly and active way over time within the context of protecting and creating value for the taxpayer as shareholder, paying due regard to the maintenance of financial stability and acting in a way that promotes competition.

 

Stewardship strategy


For all our investee companies, our engagement is focused on ensuring that their business strategies, performance, governance and risk-management are aligned to deliver sustainable value for the taxpayer. This approach is consistent with the best practice set out in the Financial Reporting Council’s Stewardship Code for Institutional Investors, which aims to enhance the quality of engagement between shareholders and companies.

The Financial Reporting Council first published the UK Stewardship Code for Institutional Investors in July 2010, and subsequently revised the Code in September 2012. The UK Stewardship Code aims to enhance the quality of engagement between asset managers and companies to help improve long-term risk-adjusted returns to shareholders.

UKFI is a committed signatory to the UK Stewardship Code and was assessed to be a Tier 1 signatory by the FRC in 2016 demonstrating our commitment to stewardship. More detail on how the UKFI complies with the principles of the code is set out within our Stewardship Code.

For any questions or queries regarding the approach of UKFI to the UK Stewardship Code please email enquiries@ukfi.co.uk. 

  

Disposal strategy


UKFI is responsible for devising and recommending strategies to HM Treasury for returning the banks to private ownership, realising value for the taxpayer and executing the chosen strategy.  

Further details of our disposals strategy can be found on page 13 of our Annual Report and Accounts 2016/17.

 

QUICK LINKS

PRESS RELEASE
31st March 2017

UKAR announces £11.8 billion sale of Bradford & Bingley assets
UK Financial Investments Limited (UKFI), today confirms that following an open and competitive sales process, UK Asset Resolution Limited (UKAR), the holding company for the government owned businesses of Bradford & Bingley plc (B&B) and NRAM Limited (NRAM), has agreed to sell two separate asset portfolios of performing buy-to-let loans from B&B to Prudential plc and to funds managed by Blackstone for £11.8 billion


PRESS RELEASE
7th October 2016

Intention to sell shares in Lloyds Banking Group plc through a trading plan
UKFI today announces that it intends to continue to sell Her Majesty’s Treasury’s (“HMT”) shareholding in Lloyds Banking Group plc (the “Company”) over the next twelve months through a pre-arranged trading plan that will be managed by Morgan Stanley & Co. International plc (“Morgan Stanley”).