Asset management industry merger and acquisition activity picked up significantly in 2003, but the size and scope of the deals plummeted, in part, due to concerns arising from the scandal engulfing the fund industry, according to a recent study released by Putnam Lovell NBF Securities of New York.

Mellon Financial has agreed to purchase Safeco Trust Co. from Safeco Corp., and the deal is expected to be completed by the middle of next month.

EnvestnetPMC has put out an undisclosed bid to acquire Net Asset Management, another Web-based, turnkey provider of separately managed accounts, mutual funds and alternative investments to broker/dealers and independent registered investment advisers. The deal would create the largest independent platform for fee-based advisers in a segment that began consolidating about 18 months ago but has much further to go, an analyst said.

J.P. Morgan Chase said on Wednesday that it is purchasing Chicago-based Banc One Corp., not only creating a banking giant, but also spawning the fourth-largest fund firm, according to research firm Lipper of New York

Cigna Corp.'s sale of its pension and 401(k) business to Prudential Financial for $2.1 billion in cash vaults Prudential into the top tier of the country's leading retirement services and products providers. The transaction, expected to close early next year, will plump Prudential Retirement's assets to nearly $120 billion and expand its participant base to 2 million.

Who says a lion and a bear can't cohabitate?

Asset management firm Dreyfus will market $4.7 billion in Bear Stearns assets, the companies announced last Tuesday.

By integrating Lockwood Financial Services and its Pershing unit into one separately managed account platform, Bank of New York claims that it will be able to increase distribution and launch the next generation of these products.

Wall Street marveled last week at how Bank of America's gargantuan purchase of FleetBoston Financial Corp. creates the second-largest bank in the United States. But little has been mentioned about how it will result in the fourth-largest fund complex in the country.

Despite the scandalous black cloud that has settled over the fund industry, several investment management companies are still happily shopping for appealing mutual fund complexes, or even a single fund or two.

Not surprisingly in the asset management business these days, companies that once thought they could do it all are now returning to their core businesses and product lines.

Thomson Financial has partnered with CheckFree Services Corp. to add separately managed account data to the Thomson ONE Advisor portfolio management software for financial advisers. CheckFree's SMA database, which covers 5,000 platforms from 1,300 money managers, represents 90% of the largest investment firms in the nation.

Mellon Financial Corp. hardly sounds done making acquisitions to expand its private wealth management unit, which includes separately managed accounts.

Financial intermediaries often explain to clients that wants and needs are two different animals. But the same holds true for the intermediaries themselves, particularly separately managed account advisers.

Lehman Brothers' acquisition of Neuberger Berman, both of New York, will permit the two firms to diversify and grow their combined $100 billion in assets.

Mutual fund giant Federated Investors has inked a deal to buy the mutual fund assets of Washington-based banking firm Riggs National in a move that would boost Federated's total assets by about $470 million.

Sister companies AIM Investments of Houston and INVESCO Funds Group of Denver, both investment management units of AMVESCAP, the U.K. holding company, are growing closer every day.

Financial Research Corp. (FRC) has contracted with Ibbotson Associates to have Ibbotson analyze its advanced research reports for mutual fund wholesalers and provide five sales ideas for each one. Fund companies can customize each report with their own name and logo.

Eaton Vance Spends $28M For Parametric Portfolio

JPMorgan, the asset management unit of J.P. Morgan Chase & Co., has taken sole ownership of its joint venture retirement plan with American Century Investments.