BNY Mellon Investment Management plans to combine three of its money management affiliates to form a new multiasset investment manager, said Desmond Mac Intyre, BNY Mellon IM's CEO of U.S. asset management.
The new business, which is set to launch in 2018, will combine Mellon Capital Management, Standish Mellon Asset Management Co. and Boston Co. Asset Management, to offer single and multiasset investment strategies, both actively and passively managed.
The combined as-yet-unnamed business will have more than $560 billion in assets under management. It will be based in Boston and led by Mr. Mac Intyre, who will serve as the chairman and CEO.
"Consolidating these three firms with complementary capabilities is a logical move," Mr. Mac Intyre said. "It's designed to meet our clients' evolving needs."
The combination of the three businesses is expected to be completed within 12 months. During this time, Mellon Capital, Standish and Boston Co. AM will maintain their existing names until BNY Mellon IM unveils the new name for the unified company at some point next year.
The individual companies' investment teams, processes and philosophies for their core strategies will remain the same. Over time, BNY Mellon IM will offer the new firm additional resources, including enhanced operational infrastructure, and new analytical tools and research capabilities.
The following executives will be appointed as chief investment officers for the following strategies: Jeff Zhang, executive vice president and CIO at Mellon Capital will be CIO for multiasset, index and smart beta; David Leduc, CEO and CIO of Standish will be CIO for active fixed income; and David A. Daglio Jr., senior managing director and head of opportunistic value strategies at Boston Co. will be CIO for active equity.
BNY Mellon IM had more than $1.8 trillion in AUM as of Sept. 30.