BNY Mellon Investment Management (BNY Mellon IM) is to combine its three largest boutique asset managers to create a new unit with $560 billion in assets in 2018.
BNY has set out plans to merge Mellon Capital Management (MCM), Standish Mellon Asset Management (Standish), and The Boston Company Asset Management (TBCAM) in a move that will create a new asset manager that will rank as one of the 50 largest in the world.
The combined business will aim to offer institutional and intermediary clients single and multi-asset investment strategies in both active and passive solutions.
The new business will be headquartered in Boston and led by chairman and chief executive Des Mac Intyre, who is currently chief executive of US asset management at BNY Mellon IM.
The three existing businesses each come with specialized investment strategies. MCM uses a systematic process to deliver equity and fixed income index and factor-based smart beta strategies, as well as multi-asset products.
Standish focuses on a fundamental, active fixed income with expertise in fixed income in both developed and emerging markets, US municipal bonds and US short duration bonds.
TBCAM is an active equity manager specilizing in value, growth and core styles as well as opportunistic and long/short alternative equity strategies.
Chief investment officers from each of the three managers MCM, Standish and TBCAM will be appointed within the new business, these are:
- Jeff Zhang from MCM for multi-asset, index and smart beta;
- Dave Leduc from Standish for active fixed income;
- Dave Daglio from TBCAM for active equity.
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.
BNY Mellon IM, which encompasses BNY Mellon's affiliated investment management firms, wealth management services and global distribution companies has $1.8 trillion in assets under management.