Mellon Brings Bond Units Together

January 30, 2003 ( - Mellon Financial is merging its three institutional bond asset management divisions, creating one of the largest US bond mangers.

The new entity, which will be based in Boston, will be called Standish Mellon Asset Management and will be made up of the existing Standish Mellon unit, which Mellon acquired in 2001, and two other Mellon units, Certus Asset Advisors (which Mellon acquired in 1995) and Mellon Bond Associates.   The new firm, which will also have offices in Pittsburgh and San Francisco, will have about a combined $125 billion in assets under management.

Bill Adam, chief executive of Mellon Bond, will become CEO of the new unit. Ted Ladd, chairman of Standish Mellon, will take on the same role in the new division. Rob McCormish, president and CEO of Certus, will join the new unit’s executive management group.  

Coming Together

Boston-based Standish Mellon has about $40 billion in assets under management and specializes in active management of bond assets.   Pittsburgh-based Mellon Bond, which focuses on quantitative investing, has more than $75 billion in assets under management, while Certus Asset Advisors, a San Francisco-based firm that specializes in stable value investing, manages about $10 billion.

Standish Mellon Asset Management will have nearly 150 investment professionals, according to the firm.