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Standard Life to buy Newton’s private clients

Deal covers 7% of assets under management valued at £3.6bn

28 February 2013

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The London-based global asset management subsidiary of the Bank of New York Mellon is selling its private client business to Standard Life Wealth.

Newton Management, together with Newton Investment Management, announced the agreement yesterday, which is valued at £3.6bn and covers about 3,000 private clients (UK and international high net worth, ultra high net worth and charity clients).

Chief executive officer at Newton Helena Morrissey said the decision “was based on the long-term future interests of all clients and staff”.

All 79 directly employed Newton private client employees will transfer to Standard Life.

Morrissey continued: “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 ongoing success in future, through its commitment to the wealth management business.”

Newton will now focus on managing institutional assets, assets for pooled investment funds and charity assets.

Standard Life Wealth chief executive Richard Charnock said: “This acquisition provides us with a unique opportunity to accelerate our onshore and offshore strategy.”

The transaction, subject to regulatory approval, is due to complete within seven months. It is expected to more than triple Standard Life Wealth’s discretionary assets.

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