Press Releases

S&P Reward Strong Performance with 'A' Ratings for Three Newton Funds

LONDON, 29 June 2007 — Three of Newton's UK retail funds, the Newton Growth Fund, Newton UK Opportunities Fund and Newton Phoenix Multi-Asset Fund, have been awarded 'A' ratings from Standard and Poor's.

The Newton UK Opportunities Fund, managed by Ben Russon, qualified for the 'A' rating having recently celebrated its fifth anniversary with a gain of over 95% since launch in 2002*. The Fund's unconstrained investment approach has helped it to become one of the best performing funds in the UK All Companies sector producing top quartile returns over one, three, and six months and over one, three, and five years and year to date.

Since assuming management of the Newton Growth Fund in December 2005, Richard Wilmot has been quick off the mark to produce some impressive returns. Whilst continuing to leverage Newton's research driven investment process, Wilmot has shown a strong ability to identify opportunities in small and medium sized companies. This approach has rewarded investors with top quartile returns in 2006 and top decile returns in 2007.

The highly successful Newton Phoenix Multi-Asset Fund was launched in November 2006 to retail investors following significant demand for multi-asset products that produce returns in excess of cash (LIBOR +2%) but without the risks associated with equity investing. The Fund combines a broad spread of asset classes including equities, bonds, cash, commodities, hedge funds, private equity and property.

The Fund began life as part of the Newton Phoenix Fund, which over the last three years, since it has been available to retail investors, has produced an annual compound growth rate of more than 10%**.

Commenting on the ratings, Alan Mearns, Chief Executive of Mellon Global Investments, said: "These ratings mean that 70% of our UK Mellon Investment Funds range is rated by S&P which is a remarkable achievement. It highlights the quality of the fund management expertise behind the funds."

Mellon Global Investments Limited is the international distributor of the investment skills and products of the asset management subsidiaries of Mellon Financial Corporation. Each of Mellon's asset managers is a specialist in its field. Their combined offering includes mainstream and high yield bond, cash, equity management, currency overlay, indexation and alternative investment management. Mellon Global Investments delivers these diverse skills to a wide and varied client base, providing a wealth of solutions. More information is available at www.mellonglobalinvestments.com.

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 high net worth individuals, providing asset management, wealth management, asset servicing, issuer services and treasury services. Mellon has approximately $5.8 trillion in assets under management, administration or custody, including $1.034 trillion under management. News and other information about Mellon is available at www.mellon.com.

Source: *Lipper Hindsight to 08/02/07 ** Lipper Hindsight to 30/04/07 - The Newton Phoenix Multi-Asset Fund began life as part of, the Newton Phoenix Fund, a successful unit trust within Newton's Private Client business offering diversification between nine different asset classes.