LONDON, Feb. 27, 2013 /PRNewswire/ -- Newton Management Limited, together with Newton Investment Management Limited, a global thematic investment boutique of BNY Mellon, announced today that they will be selling Newton's private client business to Standard Life Wealth. The transaction is subject to regulatory approval, and is expected to close in the third quarter, 2013.
The agreement covers 7% of Newton's assets under management valued at £3.6bn and approximately 3,000 private clients.
The decision follows a thorough strategic and operational review of Newton's business.
Speaking about the transaction, Helena Morrissey, chief executive officer at Newton said: "The decision to sell the private client business was made after much thought and with the long-term future interests of all clients and staff at the forefront of considerations. 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. 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's business is now focused on managing £28.9bn of institutional assets, £15.7bn of assets for pooled investment funds and £4.3bn of charity assets. Additionally, Newton will continue to offer solutions to retail investors, by acting as an investment manager to BNY Mellon operated funds that are available to other wealth managers.