BNY Mellon is set to undergo sweeping organisational changes, creating three new units under its investment services segment, and merging its three largest US investment management businesses.
The new investment services business units will focus on asset servicing; clearing, markets and client management; and issue servicing, working under the same leadership and allowing more client and business representation on the executive committee. The changes will be effective 1 January 2018.
According to BNY Mellon, the ‘flatter’ hierarchy means the firm will be better positioned to respond to clients’ needs, while also reducing complexity and allowing for faster decision making.
In addition, BNY Mellon Investment Management (IM) is combining its three largest US investment managers, creating a “specialist multi-asset investment manager”, expected to launch in 2018.
The asset manager is set to merge Mellon Capital Management (MCM), Standish Mellon Asset Management (Standish) and The Boston Company Asset Management (TBCAM) into a single business, which will have a over $560 billion in assets under management (AUM).
According to BNY Mellon, it hopes to utilise each business’s specialism, while keeping investment teams, processes and philosophies “substantially the same”. The transition period is expected to take 12 months.
The new Boston-based business will rank as a top 10 US institutional asset manager and will be well positioned it well in the rapidly evolving investment environment.
Mitchell Harris, CEO of BNY Mellon Investment Management, said: “Clients are increasingly looking for specialist managers with differentiated investment strategies and competitive pricing. This requires scale in risk management, technology and operations to deliver upon these needs.”
He added: ”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.
BNY Mellon has also made a number of senior appointments, including the hire of Thomas Gibbons as CEO of clearing markets and client management, leading the new investment services segment and reporting to CEO Charlie Scharf.
Elsewhere, Hani Kablawi will become CEO of global asset servicing and chairman of Europe, the Middle East and Africa, while Michael Santomassimo has been appointed CFO.. Francis La Salla will move from his role as CEO of corporate trust to become CEO of issuer services. In addition, the executive committee will appoint a new head of digital.
Brian Shea, CEO of investment services and vice chairman of BNY Mellon, is set to leave the firm.
As part of the merged investment management businesses, Des Mac Intyre, currently CEO of US asset management at BNY Mellon IM, will lead the new merged investment management business, while chief investment officers from each business will be appointed to ensure continuity.
Mac Intyre said: ”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.”
Image: Shutterstock 