Mellon Seeks Scale in U.S. Stocks

The big financial services outfit wants to add to its U.S. fundamental equities business.
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Mellon Financial (MEL) integrated its U.S. fundamental equity investment operations through its Dreyfus and Boston Co. units, and said it expects to seek additional scale in that business.

As a result of the integration, Mellon said, Boston Co. managers will now oversee some $15 billion of the $170 billion in Dreyfus funds, up from $10 billion before. Boston Co. and its portfolio managers oversee more than $55 billion in assets.

Dreyfus advises mutual funds, separately managed accounts and institutional portfolios. Boston Co. serves institutional and subadvisory clients and is focused on research-driven fundamental management of domestic and international equity portfolios.

"Combining the fundamental equity operations of these world-class organizations will create a formidable asset manager with strengthened investment capabilities," said CEO Martin G. McGuinn. The organization will continue to operate out of multiple locations including Boston and New York.

"As part of our effort to become the best-performing asset-management, payments and securities services company, Mellon aspires to create the best fundamental equity asset management operation in the business," McGuinn said. "Investment performance is one of our highest priorities. Key to our continued success will be the utilization of our world-class investment talent, processes, philosophies and products. We intend to maximize existing resources and commit to additional resources as we seek to achieve the scale that is now required to excel in a changing market environment."

On Tuesday, Mellon slipped 2 cents to $28.86.