BNY Mellon Investment Management

Summary

BNY Mellon Investment Management (also known as BNY Mellon IM and BNY Mellon Asset Management) is the investment management division of BNY Mellon. It is one of the largest asset managers in the world.[2] BNY IM uses seven different specialized investment managers, each with its own strategy and expertise to manage investments.[3]

BNY Mellon Investment Management
Company typeSubsidiary
IndustryInvestment management
PredecessorsBNY Asset Management
Mellon Asset Management
FoundedJuly 1, 2007; 16 years ago (2007-07-01)
Headquarters
Key people
Hanneke Smits (CEO)
ProductsMutual Funds
Money market funds
ETFs
AUMUS$ 1.91 Trillion (June 2023)[1]
ParentBNY Mellon
Websitewww.bnymellonim.com

History edit

BNY Mellon IM traces its origins to BNY Asset Management and Mellon Asset management which were the asset management divisions of Bank of New York and Mellon Financial respectively.[4][5]

In July 2007, BNY Mellon was created from the merger of the Bank of New York and Mellon Financial and BNY Mellon IM was created as a result of merging BNY Asset Management and Mellon Asset management. At the time of the deal, Melllon Asset management was far larger of the two with $930 billion (around 85%) in assets under management while BNY Asset management only had $179 billion under management. Under Melllon Asset management were the units Dreyfus, Newton, Walter Scott, Boston Company Asset Management and Standish Mellon Asset Management. Under BNY Asset management were the units Ivy Asset Management, Alcentra and Urdang Capital Management. The deal favoured the executives from Melllon Asset management who obtained senior positions at the newly formed division including its CEO, Ronald O’Hanley who became BNY Mellon IM 's CEO. In contrast several senior executives from BNY Asset Management left shortly after the merger was complete.[4][5][6]

In 2007, BNY Mellon IM acquired Brazilian asset management firm, ARX Capital Management.[7]

In 2009, BNY Mellon IM acquired Insight Investment from Lloyds Banking Group for £235m.[8] In the same year BNY Mellon IM acquired a 20% stake in Siguler Guff.[9]

In early 2010, BNY Mellon IM closed its fund of hedge funds, Ivy Asset Management. Client interest in it declined after 2006 due to its involvement with Amaranth Advisors which resulted in significant losses. At the same time, New York Attorney General Andrew Cuomo was investigating it due to its involvement in advising clients to invest with Bernie Madoff. In November 2012, Ivy Asset Management reached a $210 million settlement with US authorities for its involvement with Madoff.[10][11][12]

In October 2012, BNY IM acquired the remaining 50% of WestLB Mellon Asset Management, a joint venture formed in early 2006 between Mellon Financial and WestLB.[13] In December 2012, it was renamed to Meriten Investment Management.[14] In August 2015, it was sold to ODDO BHF.[15]

In September 2017, BNY Mellon IM sold its real assets unit, CenterSquare Investment Management (which was previously Urdang Capital Management until it rebranded in 2013) to Lovell Minnick Partners.[16]

In 2018, BNY Mellon IM merged three of its investment firms (Mellon Capital Management, Standish Mellon Asset Management and The Boston Company Asset Management) to form a new unit called Mellon Investments.[17]

In 2019, BNY Mellon IM rebranded some of its fund range dropping the Newton, Insight brands and Dreyfus brand names from funds.[18][19]

In 2020, BNY Mellon IM launched BNY Mellon Investor Solutions, an investment outsourcing services platform .[20]

In November 2022, BNY Mellon IM sold Alcentra to Franklin Templeton Investments for $700 million.[21][22][1]

Business overview edit

Investors of BNY Mellon Investment Management include pension funds, public funds, endowments and foundations.

BNY Mellon Investment Management manages investments through seven different investment managers.[3] They are

BNY Mellon Investment Management is headquartered in New York with multiple offices across Europe and Asia-Pacific.

As of March 31, 2023, BNY Mellon Investment Management has US$1.9 trillion assets under management.[23]


References edit

  1. ^ a b "BNY Mellon's assets under management hold steady in second quarter". Pensions & Investments. July 18, 2023.
  2. ^ "World's Top Asset Management Firms". www.advratings.com. Retrieved September 11, 2023.
  3. ^ a b "BNY Mellon Investment Management - AN INTRODUCTION" (PDF). BNY Mellon Investment Management. 2021. Archived (PDF) from the original on April 27, 2021.
  4. ^ a b "The Bank of New York today announced it will acquire Mellon Financial..." Pensions & Investments. March 5, 2007. Retrieved September 11, 2023.
  5. ^ a b Bruno, Mark (June 8, 2007). "It's Mellon's show now". Pensions & Investments. Retrieved September 11, 2023.
  6. ^ Heaney, Vince (June 2008). "Proving a multinational can achieve the boutique approach". thehedgefundjournal.com. Retrieved September 11, 2023.
  7. ^ Dilipp S. Nag (November 13, 2007). "Mellon to buy Brazil's ARX Capital". Reuters. Retrieved July 11, 2021.
  8. ^ "BNY Mellon to acquire Insight Investment Management | Hedgeweek". www.hedgeweek.com. August 12, 2009. Retrieved July 11, 2021.
  9. ^ Paritosh Bansal (November 2, 2009). "BNY Asset Management buys Siguler Guff stake". Reuters. Retrieved July 11, 2021.
  10. ^ Williamson, Christine (April 11, 2010). "Ivy Asset employees sensed end was near". InvestmentNews. Retrieved September 11, 2023.
  11. ^ Heller, Jamie (April 1, 2010). "BNY Mellon Unit Under Investigation Over Madoff". Wall Street Journal. ISSN 0099-9660. Retrieved September 11, 2023.
  12. ^ "Ivy Asset Management reaches $210m Madoff settlement". The Guardian. Associated Press. November 13, 2012. ISSN 0261-3077. Retrieved September 11, 2023.
  13. ^ "BNY Mellon takes full ownership of WestLB Mellon Asset Management". Investment Week. October 2, 2012. Retrieved September 11, 2023.
  14. ^ "BNY Mellon renames WestLB Mellon Asset Management KAG". InternationalInvestment. December 4, 2012. Retrieved September 11, 2023.
  15. ^ "Oddo & Cie acquires Meriten". InternationalInvestment. April 7, 2015. Retrieved September 11, 2023.
  16. ^ "BNY Mellon to sell CenterSquare to Lovell Minnick". Pensions & Investments. September 20, 2017. Retrieved September 11, 2023.
  17. ^ Huang, Vicky Ge (November 13, 2017). "BNY merges Mellon, Standish and Boston to create $560bn powerhouse". citywireamericas.com. Archived from the original on December 4, 2017. Retrieved July 11, 2021.
  18. ^ ABDALLAH, RUDI (May 8, 2019). "BNY Mellon ditches Insight and Newton names in rebrand". citywire.co.uk. Archived from the original on July 11, 2021. Retrieved July 11, 2021.
  19. ^ HUANG, VICKY GE (March 5, 2019). "BNY rebrands $63bn of Dreyfus mutual funds". citywireselector.com. Archived from the original on March 5, 2019. Retrieved July 11, 2021.
  20. ^ Mellon, B. N. Y. "BNY Mellon Investment Management Launches BNY Mellon Investor Solutions". www.prnewswire.com. Retrieved July 11, 2021.
  21. ^ "Franklin Templeton buys BNY Mellon subsidiary Alcentra". InternationalInvestment. May 31, 2022. Retrieved November 18, 2022.
  22. ^ "Completion of Sale of Alcentra NY, LLC by The Bank of New York Mellon Corporation to Franklin Templeton". www.businesswire.com. November 1, 2022. Retrieved November 18, 2022.
  23. ^ "About us: BNY Mellon Investment Management". Endowus. March 31, 2023. Retrieved November 21, 2023.