BNY Mellon Investment Management is to launch a specialist multi-asset investment manager in 2018, offering offer institutional and intermediary clients single and multi-asset investment strategies in both active and passive solutions.
The new business will combine BNY Mellon’s three largest US investment managers — Mellon Capital Management (MCM), Standish Mellon Asset Management (Standish), and The Boston Company Asset Management (TBCAM).
With over USD560 billion in AUM, the combined business will rank as a top 10 US institutional asset manager and a top 50 manager globally. It will employ more than 300 investment professionals, with US offices in Boston, San Francisco and Pittsburgh, and investment staff through affiliates in London, Singapore and Hong Kong.
“Clients are increasingly looking for specialist managers with differentiated investment strategies and competitive pricing. This requires scale in risk management, technology and operations to deliver upon these needs,” says Mitchell Harris (pictured), CEO of BNY Mellon Investment Management.
“This combined US business will give clients unified access to our intellectual capital in multi-asset strategies, alongside a strengthened investment process and an optimised platform with increased resources to deliver innovative and competitively-priced solutions. Today’s investment environment is evolving rapidly, and BNY Mellon’s multi-boutique model is well positioned to offer specialist active and passive solutions from our bench of leading investment managers.”
The existing businesses, each global in focus and largely institutional in nature, bring together unique investment solutions and skills.
MCM uses a systematic process to deliver advanced equity and fixed income indexation and factor-based smart beta strategies, as well as multi-asset products.
Standish is a fundamental, active fixed income manager with expertise in global and opportunistic fixed income (in both developed and emerging markets), US municipal bonds and US short duration bonds.
TBCAM is a research-driven active equity manager with expertise in value, growth and core styles as well as opportunistic and long/short alternative equity strategies.
The individual companies’ investment teams, processes and philosophies for their core strategies will remain substantially the same, ensuring they maintain their focus on delivering customised investment outcomes for clients. As the teams collaborate more closely together over time, these investment processes and philosophies will be enhanced via an optimised operational infrastructure and the addition of new analytical tools and research capabilities.
The management teams at MCM, Standish, and TBCAM, with the support of BNY Mellon IM, will be leading the integration of the businesses. Chief Investment Officers will be appointed from each business to maintain continuity of the investment process across all strategies. They are: Jeff Zhang from MCM for Multi-Asset, Index and Smart Beta; Dave Leduc from Standish for Active Fixed Income; and Dave Daglio from TBCAM for Active Equity.
The new business will be headquartered in Boston and led by Chairman and CEO Des Mac Intyre, currently CEO of US Asset Management at BNY Mellon IM. Des most recently served as Head of Investment Process Oversight at Bridgewater Associates. Previously, he served as the Chairman and Chief Executive Officer of Standish. His investment management experience spans more than three decades and includes roles as Chief Operating Officer at Pareto Partners and Head of Risk and Treasurer for GM Asset Management.
“Each business already has in-depth investment expertise in their respective areas. By combining them we will be able to increase our investment in their collective capabilities and add new investment solutions for the benefit of clients,” says Des Mac Intyre.
The combination of the three businesses is expected to be completed within 12 months. During this transition period, MCM, Standish and TBCAM will maintain their existing product brands until the launch of a unified brand later in 2018.