The Bank of New York Mellon Corporation has agreed to acquire Insight Investment Management Limited from Lloyds Banking Group plc for 235 million pounds Sterling.
Based in London, Insight Investment specialises in LDI (Liability Driven Investment) solutions, active Fixed Income and Alternatives. Insight Investment will join the other investment boutiques at BNY Mellon Asset Management. With this acquisition, The Bank of New York Mellon will have more than USD1 trillion in assets under management. The acquisition is expected to close in the fourth quarter of 2009.
“Two equity downturns in 10 years and rapidly growing liabilities have left many retirement plans at a crisis level and have created an urgent need to overhaul many aspects of the current funding system. LDI is a critical tool for meeting the needs of current and future retirees, while improving the stability of plan sponsors. Moreover, LDI has great potential to assist life insurance companies with similar liability issues. Thus, we look forward to Insight Investment offering our clients access to sophisticated investment solutions and expertise,” says Ronald P. O’Hanley, president and chief executive officer of BNY Mellon Asset Management.
“Not only is this acquisition financially compelling from our shareholders’ perspective, but it deepens our global capabilities and is consistent with our ongoing strategy to create broad-based solutions for our clients and address key issues facing the investment industry.”
“Through its impressive record of innovation, investment skills and new approach to investment management, Insight Investment has been at the forefront of helping its clients resolve the challenges faced by defined benefit pension plans in the UK. In a very short time, it has built a market leading position in LDI to add to its already impressive reputation as a leading fixed income manager. We believe that together, BNY Mellon Asset Management and Insight Investment can take these award-winning investment capabilities and expand Insight Investment’s international reach,” says Jon Little, vice chairman of BNY Mellon Asset Management.
“Insight Investment has grown its business by focusing on our clients and developing solutions that are tailored to our clients needs. I believe that Insight’s innovative culture and business philosophy fits very well with BNY Mellon Asset Management. Their multi-boutique approach to asset management offers us the attractive combination of continued autonomy, together with the backing of a very strong Aaa/AA-rated global financial institution, for which asset management is a core strategic priority. I am delighted that we have achieved this very positive outcome for clients of Insight. We are confident that we can realise Insight’s full potential by partnering with BNY Mellon Asset Management,” says Abdallah Nauphal, CEO and CIO of Insight Investment.
L.D.