BNY Mellon asset manager using quant models to identify global opportunities

BOSTON, September 4, 2007 — Franklin Portfolio Associates, an investment subsidiary of The Bank of New York Mellon Corporation, has launched a developed markets large cap strategy, benchmarked to the MSCI EAFE index, and a developed markets small cap strategy, benchmarked to the S&P/Citigroup Extended Markets Index. Both international strategies take a quantitative approach.

"We are extending our disciplined investment approach to include international stocks," said John Cone, chief executive officer of Franklin Portfolio Associates. "Our modeling indicates that the same concepts that have been effective for 25 years with U.S. equities will be equally successful in the international arena. Although the details of the implementation will differ, we will continue to emphasize stock selection and maintain an approximately equal weighting of value and growth/momentum factors."

"Quantitative models are an effective way to identify opportunities in large global universes of stocks," said Jonathan Calvert, senior vice president for Franklin Portfolio Associates and the lead portfolio manager for both strategies. "We believe our processes will allow us to focus on delivering consistent risk-adjusted returns in the international markets."

Franklin Portfolio Associates, one of the 19 investment boutiques of BNY Mellon Asset Management, manages approximately $34 billion in assets through a quantitative approach. It utilizes a broad range of diverse factors to rank a universe of over 8,000 domestic and international stocks on a daily basis. Created in 1982, the firm manages large institutional portfolios with a disciplined, structured approach.

The Bank of New York Mellon Corporation is a global financial services company focused on helping clients manage and move their financial assets, operating in 37 countries and serving more than 100 markets. The company is a leading provider of financial services for institutions, corporations and high-net-worth individuals, providing superior asset management and wealth management, asset servicing, issuer services and treasury services through a worldwide client-focused team. It has more than $20 trillion in assets under custody and administration and more than $1 trillion in assets under management. Additional information is available at http://www.bnymellon.com/.