Holistic Portfolio Construction is Distinguishing Attribute of Newton's Investment Approach

LONDON, 6 February 2008 — According to Newton Investment Management the balanced style of 'multi-asset' investing has fallen out of favour for no good reason, as evidenced by the 10-year outperformance of its 'flagship' multi-asset fund, the Newton Exempt Fund^*.

Newton Exempt Fund — 10 years performance (gross of fees)^*

This return is not only significantly ahead of benchmark but also ahead of UK equity, Global equity and UK bond indices over one, three, five, ten and fifteen years^*.

Commenting on the trend to specialist management of pension scheme investments in a whitepaper entitled, "The case for multi-asset investing — The Enduring Benefits of a Multi-Asset Approach," Newton makes a powerful defence for its brand of balanced, multi-asset investing. Recognising 2007 as a disruptive period in financial markets, the firm stresses its robust and proven global thematic approach has been key to retaining perspective and overcoming short-term uncertainty.

Iain Stewart, director of investment management at Newton, comments: "A 'classic' balanced multi-asset strategy can add value as an integral part of a modern pension portfolio. One need only look at our range of traditional balanced funds and the returns they have delivered to investors for compelling evidence of the continued vitality and versatility of our approach. Few would argue that we have experienced a challenging investment environment in 2007. Yet in the past year all of Newton's multi-asset funds have outperformed their benchmarks - just as they have over the past three, five, and ten year periods."

Newton's process of retaining perspective and focusing ideas through its use of themes in constructing portfolios has generated strong returns for investors. The firm underlines the fact that multi-asset fund management can be tailored to meet a range of different objectives, evidenced by the development of funds with an unconstrained, targeted orientation such as its Newton Absolute Intrepid Fund. This Fund invests without limitations in 'conventional' asset classes but uses downside protection tools and income-generating derivatives to enhance returns. This strategy, a pure application of Newton's global multi-asset approach, has generated a return of 15.8% over one year, and 14.0% over three years^*.

Newton Investment Management Limited is a London-based global asset management subsidiary of The Bank of New York Mellon Corporation and part of BNY Mellon Asset Management. With assets under management of more than £38 billion, the company provides a broad range of award-winning investment products and services to individuals, pension funds, charities and corporations. News and other information about Newton is available at www.newton.co.uk.

The Bank of New York Mellon Corporation is a global financial services company focused on helping clients manage and service their financial assets, operating in 34 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, clearing services and treasury services through a worldwide client-focused team. It has more than $20 trillion in assets under custody and administration, more than $1.1 trillion in assets under management and services $11 trillion in outstanding debt. Additional information is available at bnymellon.com.

This information is for professional investors only. *Source: Newton. Close of business Prices. Gross of Fees. All other information source BNY Mellon Asset Management International Limited as at 31 December 2007 unless otherwise stated. This press release is issued by BNY Mellon Asset Management International Limited to members of the financial press and media and the information contained herein should not be construed as investment advice. Past Performance is not a guide to future performance. Registered office: The Bank of New York Mellon Centre, 160 Queen Victoria Street, London, EC4V 4LA. Registered in England no. 1118580.
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