Back to top

Analyst Blog

The Bank of New York Mellon Corporation (BK - Analyst Report) has recently purchased the remaining 50% stake of its WestLB Mellon Asset Management Joint venture. Back in 2006, BNY Mellon had formed this joint venture (JV) with Portigon – a Germany-based portfolio management and service company. Either of the parties have not disclosed the terms of the deal.

WestLB Mellon Asset Management was created as a 50:50 JV between BNY Mellon and Portigon. The JV has a headcount of about 170 and more than €25bn in assets under management. Upon the acquisition of this JV, Werner Taiber – member of the Managing Board of Portigon – will become the new CEO. This appointment is subject to approval by the German regulators.

Similarly, Morgan Stanley (MS - Analyst Report) is all set to acquire majority stake in a brokerage JV that it had formed with Citigroup Inc. (C - Analyst Report). Morgan Stanley (currently holding 51%) will buy nearly 14% stake in Morgan Stanley Smith Barney for $1.89 billion by the end of the third quarter of 2012. Further, Morgan Stanley would acquire the remaining 35% stake of Citi in the brokerage JV before June 1, 2015 in a phased manner with the next 15% to be acquired by June 1, 2013.

We expect this stake buyout to benefit BNY Mellon’s Investment Management segment. Though the segment’s revenue fell marginally in the first half of 2012 compared with prior-year period, we believe that the company will be able to enhance its top line in the future given a solid portfolio, which displays brilliant German investment techniques.

BNY Mellon currently retains a Zacks #3 Rank, which translates into a short-term Hold rating. Considering the fundamentals, we also maintain a long-term Neutral recommendation on the stock.

Please login to or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research


Are you a new Zacks Member or a visitor to

Top Zacks Features

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
UTD THERAPE… UTHR 117.83 +28.51%
TRIQUINT SE… TQNT 20.67 +6.52%
RF MICRO DE… RFMD 12.47 +6.04%
VASCO DATA… VDSI 14.77 +4.68%
BANCO DO BR… BDORY 15.53 +3.95%