BNY Mellon continues investment management division overhaul with advisory launch

May 21, 2020.

said Thursday it is launching a new investor advisory service that will be offered by its investment management division, in the latest big change for the subsidiary.

The bank said that the new service, known as BNY Mellon Investor Solutions, will be “an -registered investment adviser that offers comprehensive portfolio management and investment advisory services for investors worldwide seeking outsourced investment management.”

The advisory group has $11 billion in assets under management and $110.8 billion in assets under advisement, BNY Mellon said. 

BNY Mellon touted the advisory group’s formation as a continuation of its 50 years of experience as an Outsourced Chief Investment Officer.

OCIO services offered by the group will include offering advice for allocating assets and building portfolios; analytics, research and selection; and providing access to the bank’s custodial and trust services, BNY Mellon said.

The group will be comprised of almost 70 investment professionals and report to wealth management division CEO Catherine Keating, the bank said.

“The ability to tap into BNY Mellon's leading investment and advisory services to design customized portfolios tailored to client objectives, preferences, and market realities, represents a compelling proposition for investors seeking a comprehensive investment solution,” Keating said in a statement.

BNY Mellon CEO Todd Gibbons, who took over on a permanent basis in March following a roughly 6-month interim stint in the role, described the purpose of the new group.

"BNY Mellon is a trusted steward for our global clients, serving as an investment manager, wealth manager, and asset servicer with the unique ability to help investors achieve their goals from every perspective," Gibbons said in a statement. "BNY Mellon Investor Solutions brings together the full power of our collective enterprise to meet the ever-evolving needs of investors by providing an integrated investment offering—needs that have only been amplified in the current environment."

The formation of the advisory group represents the latest step in an ongoing overhaul of the bank’s investment management division. 

In April, BNY Mellon unveiled a suite of low-cost exchange traded funds, including a pair of “Core” ETFs for large-cap equities and bonds that will carry no fees. BNY Mellon had been struggling with outflows from its existing index mutual funds amid competitive pressure on fees, Reuters reported in July, noting that, at the time it lacked an ETF lineup. 

The bank reported having a total of $1.8 trillion in assets under management as of March 31.