BNY Mellon is paying Lloyds Banking Group £235m for the asset management company, with the deal set to conclude in the final quarter of the year. It will be positioned alongside existing BNY Mellon fund boutique operations such as Newton and Standish.
Launched in 2002, Insight Investments specialises in liability-driven investment solutions, active fixed income and alternatives. Earlier this month, Insight revealed a profit of £21.3m for the six months to June 30 , a rise of 31 per cent from last year.
BNY Mellon vice-chairman Jon Little says there are very few overlaps between Insight and its other big boutique Newton.
He says: “There may be some need to look at rationalising the range at some point but we feel that Insight is a strong brand and for us it is very much business as usual.”
However, Hargreaves Lansdown investment manager Ben Yearsley says that BNY Mellon should look to replenish the retail range.
He says: “Apart from their market-neutral proposition, which is very strong, Insight have very little to offer IFAs in the retail space. Their fund of funds is not bad but it does not stand out in a competitive place. Elsewhere, the cupboard is pretty bare.”
Whitechurch Securities managing director Gavin Haynes says: “We have none of their funds at present despite their strides in the absolute return space. Perhaps they need a big name fund manager to garner further interest.”
Informed Choice managing director Martin Bamford says: “We have always seen them as a fund manager that looks after Clerical Medical funds and has not been on the radar. If it ever needed an opportunity for change in the retail sector, this is the chance, given BNY Mellon’s strong base.”