PITTSBURGH Mellon Financial Corp. agreed to purchase the remaining 25% of Newton Management Ltd., an asset management firm based in London.
Mellon, which acquired 75% of Newton in October 1998, was anticipating buying out the remaining shareholders in 2002, but Newtons performance numbers were far better than anticipated, according to Ron OHanley, president of Mellon International Asset Management.
They reached their performance hurdles much sooner than anticipated the pace at which new business was coming was much faster than wed expected, he said. The bulk of the new business, he added, came from unit trusts and mutual funds. Newton was the #3 asset management firm in the U.K., which showed tremendous growth, he said.
The Mellon and Newton have agreed the Mellon will buy out all remaining shareholders on July 1, 2001 and May 1, 2002.
Newtons funds under management grew by more than 50%, from $20 billion to $31 billion as of June 30, 2000.
Newtons investment team remains unchanged, as does its investment philosophy. Jon Groom, currently president of Mellon Global Investments, will succeed founder Stewart Newton as chairman. Newton will continue as non-executive director.