Press Releases

Newton Launches Newton Exempt UK Equity Alpha Fund; New Fund Aimed at Institutional Investors

LONDON, October 29, 2002—Newton Fund Managers Limited, the primary UK asset management subsidiary of Mellon Financial Corporation, has launched the Newton Exempt UK Equity Alpha Fund as an addition to its exempt pooled fund range, aimed at UK institutional pension schemes. The new fund utilises the firm's successful 'higher income' strategy that has delivered strong returns for retail investors for over 10 years.

Newton firmly believes an increasing number of UK pension schemes will move to a scheme specific environment, hence the need for greater choice and flexibility in fund selection. The Newton Exempt UK Equity Alpha Fund is therefore a welcome addition to the existing exempt pooled fund range which now numbers 12 specialist investment funds alongside its three balanced funds.

Building on a specific stock selection process which has proven highly successful in the retail market, the Fund will invest in companies which must pass Newton`s strict quality threshold and yield more than the FTSE All-Share Index. The application of this strict yield discipline will result in the immediate sale of any stock whose yield falls below that of the market. All income generated by the Fund will be reinvested.

The Newton Exempt UK Equity Alpha Fund will be managed by Tineke Frikkee who is a member of the investment team responsible for managing the S&P Micropal -rated Newton Higher Income Fund, a retail fund which is ranked 6/75 over 5 years in its sector. Newton has developed an enviable track record in this area and it is confident that this new Fund will enhance both its exempt pooled fund range and its tailored 'Tactical Asset Allocation' service which is in much demand in the pooled UK institutional pension market.

Commenting on the launch Simon Wombwell, Director at Newton Fund Managers, said: "In an environment where returns of between 6%-8% become more commonplace, a portfolio of quality stocks delivering around 5% yield is a great starting point. We believe that the combination of Newton's core research and stock selection process, and a strict, yield driven, buy/sell discipline will prove very appealing to institutional investors."

Newton
Newton Fund Managers Limited is a London-based UK asset management subsidiary of Mellon Financial Corporation. With assets of almost £22 billion, the company provides a broad range of award-winning investment products and services to individuals, pension funds, charities and corporations. Newton has operations in London, Edinburgh, Leeds, Guernsey, Jersey and the Isle of Man. News and other information about Newton is available at www.newton.co.uk.

Mellon Financial Corporation
Mellon Financial Corporation is a global financial services company. Headquartered in Pittsburgh, Mellon is one of the world's leading providers of financial services for institutions, corporations and affluent individuals, providing institutional asset management, mutual funds, private wealth management, asset servicing, human resources services and treasury services. Mellon has approximately $2.8 trillion in assets under management, administration or custody, including $562 billion under management. Its asset management companies include The Dreyfus Corporation and U.K.-based Newton Investment Management Limited. News and other information about Mellon is available at www.mellon.com.