BNY Mellon and Pershing Bundle Services to Deliver Comprehensive Investment Solutions to Advisors

Rhea-AI Summary

BNY Mellon has announced a new bundled offering through Pershing, aimed at financial advisors, including RIAs, broker-dealers, and banks. This package integrates services from BNY Mellon Investment Management and BNY Mellon Advisors, potentially providing up to 40% in savings. The initiative seeks to simplify the investment process for advisors by combining asset allocation, manager selection, investment management products, customized tax solutions, and custody and clearing services. The offering is backed by BNY Mellon's 240 years of financial expertise and is designed to help advisors better meet client needs and improve their practice efficiency.

Positive

• Bundled offering could provide up to 40% in savings.
• Comprehensive services from BNY Mellon's managed accounts, asset allocation, and manager selection.
• Simplified access to BNY Mellon's leading platforms.
• Enhanced value through Pershing's interoperable Wove platform.
• Decreased custody fees for advisors investing with BNY Mellon.
• Supported by 240 years of financial lifecycle experience.
• Managing $48.8 trillion in assets under custody and $2.0 trillion in assets under management.

Negative

• Savings are conditional and not guaranteed for all clients.
• Potential conflict of interest due to required investments in BNY Mellon affiliated products.
• Requirement to maintain a threshold amount in BNY Mellon products to realize savings.

Insights

Financial Analyst

BNY Mellon's new bundled service offering through Pershing substantially streamlines the way financial advisors can access various investment solutions. By integrating services such as asset management, tax solutions and custody services into a single comprehensive package, BNY Mellon is responding to the growing complexity of investor needs. The potential 40% savings for advisors who utilize this bundle can translate to significant cost reductions, enhancing their capacity to serve clients effectively.

This move aligns with the trend of consolidating financial services to deliver more value-added experiences for clients. However, advisors must maintain a minimum level of investments in BNY Mellon products to achieve these savings, which could introduce conflicts of interest. The long-term implication of such offerings is that they could foster greater loyalty and reliance on BNY Mellon's ecosystem but might also reduce flexibility for advisors in choosing products from other providers.

For retail investors, this development could mean improved advisory services, as advisors will have more integrated tools and potentially lower operational costs. However, it's essential to scrutinize if the bundled offerings indeed lead to better investment outcomes or if they primarily serve to lock in client capital within BNY Mellon's services.

Market Research Analyst

BNY Mellon's initiative to bundle services through Pershing is a strategic move in an increasingly competitive market for financial advisory services. By offering a comprehensive suite of bundled services, BNY Mellon is poised to capture a larger share of the advisory market. The use of the Pershing X's Wove platform for interoperability showcases their commitment to leveraging technology for seamless integration of services.

From a market perspective, this bundling can be seen as a competitive differentiator, potentially attracting advisors looking for cost-efficient, one-stop solutions. The claim of up to 40% savings is compelling, but advisors and investors should be wary of the conditions attached to these savings, such as maintaining specific investment levels in affiliated products, which could limit diversification and increase exposure to BNY Mellon's products.

This strategic bundling also reflects broader industry trends towards consolidation and the use of technology to enhance service delivery. Retail investors might benefit from more streamlined and potentially lower-cost advisory services, but they should remain vigilant about the potential for conflicts of interest and ensure that these bundled services align with their financial goals and risk tolerance.

BNY Mellon's managed accounts ecosystem brings unique value and access for advisors

The bundled offering enables RIAs, broker-dealers and banks to use multiple solutions provided by BNY Mellon at a discount and could see up to 40% in savings¹

NEW YORK, June 4, 2024 /PRNewswire/ -- The Bank of New York Mellon Corporation ("BNY Mellon") (NYSE:BK), the global financial services company, today announced at its INSITE conference a bundled offering delivered through Pershing that enables financial advisors to access the full breadth of capabilities from across BNY Mellon's leading platforms, including BNY Mellon Investment Management and BNY Mellon Advisors.

As investors' financial needs continue to become more complex, they are increasingly looking to their financial advisors for help across their investment needs. By bundling these services, BNY Mellon is providing advisors with a holistic, simplified offering, allowing them to focus more of their time on their clients.

Backed by 240 years of experience across the financial lifecycle, BNY Mellon is bringing together the firm's managed accounts platform, asset allocation and manager selection, investment management products, customized tax solutions, the interoperable Pershing X's² Wove platform for advisors, and custody and clearing services from BNY Mellon's Pershing into a comprehensive, unified package for clients.

"We want to be the partner that offers our leading capabilities at scale and all in one place. Importantly, this solution could offer our clients savings of up to 40%," said Stephanie Pierce, Head of Dreyfus, Mellon and BNY Mellon Advisors. "Strengthened by BNY Mellon Advisors, this competitive offering provides a gateway for advisors to meet more of their clients' unique investment needs and better run their advisory practices."

BNY Mellon Pershing also offers additional opportunities for advisors to do more with the firm for less, including decreased custody fees when advisors invest with BNY Mellon Investment Management.

"By bringing together the strength of Pershing's offerings with Investment Management's industry-leading products and the expertise of BNY Mellon Advisors, we're able to offer more value and the full breadth of BNY Mellon's services to our clients," said Ben Harrison, Head of Wealth Solutions, BNY Mellon's Pershing. "This latest innovative offering is another great example of how we are uniquely positioned to support clients through every stage of the investment lifecycle."

BNY Mellon is a global financial services company that helps make money work for the world – managing it, moving it and keeping it safe. For 240 years we have partnered alongside our clients, putting our expertise and platforms to work to help them achieve their ambitions. Today we help over 90% of Fortune 100 companies and nearly all the top 100 banks globally access the money they need. We support governments in funding local projects and work with over 90% of the top 100 pension plans to safeguard investments for millions of individuals, and so much more. As of March 31, 2024, we oversee $48.8 trillion in assets under custody and/or administration and $2.0 trillion in assets under management.

BNY Mellon is the corporate brand of The Bank of New York Mellon Corporation (NYSE: BK). We are headquartered in New York City, employ over 50,000 people globally and have been named among Fortune's World's Most Admired Companies and Fast Company's Best Workplaces for Innovators.  Additional information is available on www.bnymellon.com. Follow us on LinkedIn or visit our Newsroom for the latest company news.

BNY Mellon Pershing (member FINRA, NYSE, SIPC) is a leading provider of clearing and custody, trading and settlement, advisory and investment solutions, data insights, business consulting and other services to wealth management and institutional firms looking to grow their businesses. For more information, go to: pershing.com

BNY Mellon Investment Management is one of the world's largest asset managers, managing almost $2 trillion across a range of traditional and alternative assets through seven specialist investment firms – ARX, Dreyfus, Insight, Mellon, Newton, Siguler Guff, and Walter Scott. For more information: www.bnymellonim.com.

BNY Mellon Advisors, an investment adviser registered in the United States under the Investment Advisers Act of 1940, is the investment solutions gateway, providing centralized access to BNY Mellon's comprehensive investment services and expertise and has $173.6 billion³ in assets under management or advisement, as of March 31, 2024. BNY Mellon Advisors is dedicated to delivering integrated investment solutions driven by insights, powered by innovative technology and focused on helping clients achieve their objectives.

This press release is qualified for issuance in the US only and is for informational purposes only. It does not constitute an offer or solicitation of securities or investment services or an endorsement thereof in any jurisdiction or in any circumstance in which such offer or solicitation is unlawful or not authorized. This press release is issued by BNY Mellon to members of the financial press and media and the information contained herein should not be construed as investment advice.

¹ This represents estimated potential savings over what may be paid to various BNY Mellon affiliates for the use of numerous services on an a la carte basis which were each contracted for separately. The amount stated is for illustrative purposes only. Such savings are conditioned on achieving and maintaining a minimum level of investments in BNY Mellon affiliated products, and, other conditions. A conflict of interest exists with regard to certain recommendations of BNY Mellon Advisors (or other BNY Mellon affiliates) when recommendations are made regarding investments in products advised by affiliates. Not all clients will be able to realize this level of savings. The requirement to maintain a certain threshold amount in BNY Mellon affiliated products creates a conflict of interest that you may be required to disclose to investors.

² Technology services may be provided by Pershing X, Inc., an affiliate of Pershing LLC, member FINRA, NYSE, SIPC. Pershing and Pershing X do not provide investment advice or offer investment advisory products or services.

³ This includes regulatory assets under management of approximately $19.4 billion which are managed on a discretionary and non-discretionary basis; approximately $8 billion which is managed by certain BNY Mellon Advisors employees in their capacity as dual officers of BNY Mellon Advisors and BNY Mellon, N.A.; and approximately $139 billion managed on a non-discretionary basis where advisory services are provided to BNY Mellon, N.A. and accounts for which BNY Mellon Advisors provides a model of securities but does not arrange or effect the purchase or sale of the securities. For more information on the services provided for each category of management, please see BNY Mellon Advisor's most recent ADV Part 2A.

Contact:
Sue Watt
Sue.Watt@bnymellon.com 

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SOURCE BNY Mellon

FAQ

What savings can advisors expect from BNY Mellon's new bundled offering?

Advisors can potentially see up to 40% in savings by using BNY Mellon's bundled services.

What services are included in BNY Mellon's new bundled offering for advisors?

The bundle includes asset allocation, manager selection, investment management products, customized tax solutions, and custody and clearing services.

How does the new bundled offering benefit financial advisors?

It simplifies the investment process, allowing advisors to focus more on their clients and potentially save up to 40% in costs.

Are there any conditions to achieve the savings in BNY Mellon's bundled offering?

Yes, savings are conditional on maintaining a minimum level of investments in BNY Mellon affiliated products.

What platforms does BNY Mellon's new offering integrate?

It integrates BNY Mellon Investment Management, BNY Mellon Advisors, and Pershing's interoperable Wove platform.