BUY SIDE

BNY Mellon combines US buy-side businesses

Mellon Capital Management, Standish Mellon Asset Management and The Boston Company Asset Management will merge to form multi-asset investment manager.

By Hayley McDowell hayley.mcdowell@strategic-i.com November 13, 2017 1:38 PM GMT

BNY Mellon Investment Management is to launch a new specialist, multi-asset investment management business by combining its three largest US buy-side firms.

Mellon Capital Management, Standish Mellon Asset Management and The Boston Company Asset Management will merge to form the new company and offer clients single and multi-asset, active and passive investment strategies.

The combined entity will have over $560 billion in assets under management, employing more than 300 individuals globally.

It will be headquartered in Boston and will be led by the current CEO of US asset management at BNY Mellon Investment Management, Des Mac Intyre.

“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,” he commented.

BNY Mellon explained the companies’ teams, processes and core strategies will largely remain the same, but as they collaborate more closely over time the processes and philosophies will be improve and optimised.   

Mitchell Harris, CEO of BNY Mellon Investment Management, added clients are increasingly seeking specialist managers with differentiated investment strategies and competitive pricing.

“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,” he added.

The merger of the businesses is expected to be completed within 12 months and will launch officially under a unified brand later in 2018.