BNY Mellon IM To Merge Three Boutiques Into Single $560B Manager

Nov 13 2017 | 7:03pm ET

BNY Mellon Investment Management will launch a specialist multi-asset management company next year that will combine the three largest boutiques under its umbrella into a single entity.

The new investment manager will offer institutional and intermediary clients single and multi-asset investment strategies as well as both active and passive investment solutions, the company said in a statement on Monday. The new business will combine BNY Mellon's three largest U.S. investment managers – systematic smart beta manager Mellon Capital Management, fixed-income specialist Standish Mellon Asset Management, and active long/short equity manager The Boston Company Asset Management – which collectively manage some $560 billion in assets. 

The combined firm will rank as a top 10 U.S. institutional asset manager and a top 50 manager globally, BNY IM added. The individual companies' investment teams, processes and philosophies for their core strategies will remain substantially the same, while their respective management teams will be leading the integration of the businesses. 

Chief Investment Officers will be appointed from each business to maintain continuity of the investment process across all strategies. They include Jeff Zhang from MCM for Multi-Asset, Index and Smart Beta, Dave Leduc from Standish for Active Fixed Income, and Dave Daglio from The Boston Company for Active Equity.

The new business will be headquartered in Boston and led by chairman and CEO Des Mac Intyre, currently CEO of U.S. Asset Management at BNY Mellon IM. Previously, Mac Intyre was head of investment process oversight at Bridgewater Associates, and was beforehand chairman and CEO of Standish from 2005 - 2015. 

The combination of the three businesses should be completed within 12 months, the statement continued, while a unified brand will be unveiled in 2018.

BNY Mellon Investment Management is part of financial services giant BNY Mellon and one of the world's leading investment management organizations with $1.8 trillion in AUM as of September 30, 2017. It encompasses BNY Mellon's affiliated investment management firms, wealth management services and global distribution companies. 

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