Bank of New York Mellon Corporation is to acquire Insight Investment Management in a deal worth £235million.

Insight Investment, currently part of the Lloyds banking group, which specialises in liability driven investment (LDI) solutions, active fixed income and alternatives, has assets under management of approximately £80bn.

The acquisition will see Insight Investment join other investment boutiques at BNY Mellon Asset Management, and brings BNY Mellon Corporation's assets under management up to more than $1trn.

"Two equity downturns in ten years and rapidly growing liabilities have left many retirement plans at a crisis level and have created an urgent need to overhaul many aspects of the current funding system," commented Ronald P. O'Hanley, president and chief executive officer of BNY Mellon Asset Management.

"LDI is a critical tool for meeting the needs of current and future retirees, while improving the stability of plan sponsors. Moreover, LDI has great potential to assist life insurance companies with similar liability issues. Thus, we look forward to Insight Investment offering our clients access to sophisticated investment solutions and expertise.

"Not only is this acquisition financially compelling from our shareholders' perspective, but it deepens our global capabilities and is consistent with our ongoing strategy to create broad-based solutions for our clients and address key issues facing the investment industry," he added.

The transaction is expected to be completed in the fourth quarter of 2009.

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