BNY Mellon shuffles investment boutiques’ fixed-income assets

Standish Mellon Asset Management's high-yield bond team will move to affiliate Alcentra NY LLC, as part of a broader reorganization of multiboutique parent BNY Mellon Asset Management's fixed-income capabilities.

The addition of Standish Mellon's seven-person high-yield team, and its $7.4 billion in client assets, will expand London-based Alcentra's U.S.-based high-yield team to 15 while lifting its assets under management to roughly $23 billion, confirmed BNY Mellon spokesman Michael Dunn.

In other shifts, Standish Mellon will manage $19.7 billion in stable value strategies, $38.5 billion in non-money market fund cash strategies and $7.7 billion in active fixed-income strategies previously overseen by affiliate BNY Mellon Cash Investment Strategies.

Also, Mellon Capital Management will receive $12 billion in indexed fixed-income strategies that had been run by BNY Mellon Cash Investment Strategies.

In a telephone interview, Mr. Dunn said the reorganization will allow BNY Mellon Cash Investment Strategies to focus on the money market mutual fund business at a time when far-reaching changes in regulatory oversight are under review.

Mr. Dunn said the changes, which take effect Jan. 1, are aimed at better aligning BNY Mellon's businesses for those strategic product categories in pursuit of strong investment performance, the ability to respond nimbly to client needs and a rapidly evolving regulatory environment.

The reorganization is the second shuffle BNY Mellon has revealed over the past week. On Sept. 14, the company announced that its currency management boutique, Pareto Investment Management, will become a unit of its London-based LDI specialist, Insight Investment Management, effective Jan. 1.