BNY Mellon Investment Management, with more than $1.8 trillion in assets under management, announced it will launch a specialist multi-asset investment manager in 2018.
The new business will combine BNY Mellon’s three largest U.S. investment managers—Mellon Capital Management, Standish Mellon Asset Management and The Boston Company Asset Management—to offer institutional and intermediary clients single and multi-asset investment strategies that use both active and passive strategies, the firm says.
The combined business will have more than $560 billion in AUM and employ more than 300 investment professionals in Boston, San Francisco and Pittsburgh. It will also encompass investment staff at 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,” said Mitchell Harris, CEO of BNY Mellon Investment Management.
The existing global businesses, which focus largely on institutions, offer different expertise, according to the company. Mellon Capital Management uses a systematic process to deliver 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 developed and emerging markets, U.S. municipal bonds and U.S. short duration bonds. The Boston Company Asset Management 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 strategies will remain substantially the same, the company said.
Chief investment officers for the new business will be Jeff Zhang from Mellon Capital Management for multi-asset, index and smart beta; Dave Leduc from Standish for active fixed income, and Dave Daglio from The Boston Company Asset Management for active equity.
The new business will be headquartered in Boston and led by chairman and CEO Des Mac Intyre, currently CEO of U.S. Asset Management at BNY Mellon IM. Mac Intyre most recently served as head of investment process oversight at Bridgewater Associates. Previously, he served as the chairman and CEO of Standish.
The combination of the three businesses is expected to be completed within 12 months, the company said.