BNY Mellon has finally purchased Insight Investment Management Limited from the Lloyds Banking Group for £235m.

The global asset manager will inherit an estimated 331 staff from Insight, who specialise in liability driven investment (LDI), active fixed income and alternative investments, and now has more than $1trn in assets under management. The deal's completion also means that BNY Mellon now has control of a client book which includes some of the UK's largest pension schemes.

Ronald P. O'Hanley, president and chief executive officer of BNY Mellon Asset Management, commented on the benefits this acquisition will bring to the business, saying: "Two equity downturns in 10 years and rapidly growing liabilities have left many retirement plans at crisis level and have created an urgent need to overhaul many aspects of the current funding system. LDI is a critical tool for meeting the needs of current and future retirees, while improving the stability of plan sponsors. Thus, we look forward to Insight Investment offering our clients access to sophisticated investment solutions and expertise."

Lloyds Banking Group, which still owns Scottish Widows Investment Partnership (SWIP), has begun transferring the investment management of funds sourced from its other operational arms. Halifax and Bank of Scotland bancassurance businesses, the Bank of Scotland wealth management operation and the Clerical Medical intermediary franchise have seen funds move from Insight to SWIP. A full migration is expected to be completed by the end of March 2010.

According to Dean Buckley, managing director at SWIP, the transfer of assets represents a great opportunity for SWIP to play a major part in the development of the Group's investment business. "In September," Buckley said, "I announced the business model and executive team that will drive SWIP forward. Our priority remains to deliver strong investment performance and excellent client service, thereby reinforcing our reputation as a market-leading asset manager."

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