US – Mellon Financial Corp. is merging three of its 14 institutional asset management businesses to form one of the largest fixed income managers in the US.
Certus Asset Advisors, Mellon Bond Associates and Standish Mellon Asset Management have now merged, taking the name of Standish Mellon Asset Management. The new company will have approximately 125 billon dollars (115.6 billion euros) in assets under management, and will be based in Boston with additional offices in Pittsburgh and San Francisco.
Bill Adam, currently chief executive of Mellon Bond, will become CEO of the new entity. Tedd Ladd, chairman of Standish Mellon, will be chairman. Rob McCormish, president and chief executive of Certus, will join the executive management group of the new firm.
Says Adam: “Attaining critical mass as we move to the next generation of investment technology will be beneficial to all three firms and their clients.” Mellon believes that clients will benefit from expanded professional knowledge base, compatible philosophies and operational efficiencies.
A spokesman for Mellon said that no staff reductions were expected as a result of the merger.
Certus Asset Management focuses on stable value investments and has 10 billion dollars in assets under management. Mellon Bond applies quantitative methods to fixed income portfolios and has more than 75 billion dollars in assets under management. Standish Mellon focuses on actively managed institutional fixed income securities, and has 40 billion dollars in assets under management.