Bank of New York Mellon is closing its beta and transition management business.
Company officials determined the unit “is not core to our business model,” said Mike Dunn, BNY Mellon spokesman.
Mr. Dunn said BNY Mellon would assist clients “to identify, and move to, a replacement provider for their strategies and positions.”
BNY Mellon will transfer as many of the business’s 35 full-time employees to other units at the company, Mr. Dunn said, declining to comment further.
Efforts to reach others at the beta and transition management unit were unsuccessful.
Transition managers’ assets from U.S. pension funds declined 10% to 15% in 2013 as those clients managed more traditional investments internally, reduced the amount that’s rebalanced, and increased their allocations to alternative investments, according to several sources.
The reduction in assets moved came in a year that saw two firms — J.P. Morgan Chase and Credit Suisse Group, announce they were closing some or all of their transition management operations.