Cutwater will operate as part of BNY Mellon Investment Management and will work with, and be administered by, Insight Investment - one of BNY Mellon’s investment management boutiques.

The deal enhances BNY Mellon’s and Insight’s US platform and abilities to offer specialized fixed income solutions, the firm said.

In fixed income, Cutwater offers core, long duration, high-yield, loans and absolute return strategies.

Terms of the transaction - which is subject to standard regulatory approvals and certain other conditions - were not disclosed. It is expected to finalize by the start of Q1 2015.