The world's largest multi-boutique asset manager is consolidating three of its biggest US investment managers to create a specialist AU$733 billion multi-asset manager.
BNY Mellon Investment Management has announced that Mellon Capital Management, Standish Mellon Asset Management and The Boston Company Asset Management will be combined to offer active and passive, single and multi-asset investment strategies to institutional and intermediary clients.
The new business - which will be headquartered in Boston - will rank as a top 10 US institutional manager and a top 50 manager globally, employing 300 investment professionals across Boston, San Francisco, Pittsburgh, London, Singapore and Hong Kong.
Current chief executive of US Asset Management at BNY Mellon IM, Des Mac Intyre has been appointed as chief executive and chairman of the new business.
BNY Mellon IM chief executive Mitchell Harris said clients are increasingly looking for specialist managers with differentiated investment strategies and competitive pricing, which requires scale in risk management, technology and operations to be delivered.
"This combined U.S. business will give clients unified access to our intellectual capital in multi-asset strategies, alongside a strengthened investment process and an optimized platform with increased resources to deliver innovative and competitively-priced solutions," he said.
"Today's investment environment is evolving rapidly, and BNY Mellon's multi-boutique model is well positioned to offer specialist active and passive solutions from our bench of leading investment managers."
Under the new business, the individual companies' investment teams, processes and philosophies for their core strategies will remain largely the same, to be enhanced over time via an optimised operational infrastructure and the addition of new analytical tools and research capabilities.
The integration will be led by the existing management teams of the individual firms, while chief investment officers have been appointed from each to maintain continuity of the investment processes. MCM's Jeff Zhang will lead multi-asset, index and smart beta, Dave Leduc from Standish will lead active fixed income, and TBCAM's Dave Daglio will be responsible for active equity.
"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," Mac Intyre said.
The amalgamation is expected to be completed within 12 months, with a unified brand to be launched in the second half of 2018.