Newton Management, a thematic investment boutique of BNY Mellon, has agreed to sell its private client business to Standard Life Wealth.
The deal is subject to regulatory approvals and is expected to close in the third quarter this year. The sale represents 7% of Newtons assets under management, which are valued at 3.6 billion and approximately 3,000 private clients.
The sale comes following a strategic and operational review of Newton’s business. Helena Morrissey, CEO of Newton, says the decision to sell the private client business was made considering the long-term future interests of clients and staff.
Newton’s overall business has evolved over the past several years to the point where private clients now make up just a small portion of our total assets under management, says Morrissey. We believe that the interests of private client investors, including the delivery of the highest standards of client service will be better served in future by a business where this area is a core element of the overall company strategy.
We are confident that Standard Life Wealth will offer our private clients and associated staff the best opportunity for on-going success in future, through its commitment to the wealth management business. Newton in turn will now be focused more clearly on our core business of institutional and charity investment management, as well as fund solutions for the wholesale and retail sectors.”
Newton now manages 28.9 billion of institutional assets, 15.7 billion of assets for pooled investment funds and 4.3 billion of charity assets. The firm continues to offer solutions to retail investors by acting as an investment manager to BNY Mellon-operated funds that are available to other wealth managers.
(CG)