Mellon Investments, a Bank of New York Mellon investment management affiliate, is merging its quantitative and fundamental equity teams and again restructuring its small-cap equity teams.
As a result of the decision, nine investment staffers — one analyst and eight portfolio managers, including active equity co-CIO Mark A. Bogar — will leave the firm later this month, a company executive confirmed Monday.
The departures are part of a restructuring effort in equity leadership that began six months ago, said John R. Porter III, who is now CIO, head of equity, at Mellon.
Mr. Porter, who was previously co-CIO of the active equity team alongside Mr. Bogar, will now serve as sole CIO of the team, he said Monday. The company does not plan to hire another co-CIO, he added.
As part of the restructuring, Mellon is merging its quantitative and fundamental equity teams and also merging its small-cap opportunistic and small-cap growth value teams, Mr. Porter said.
The small-cap team restructuring follows a move 18 months ago in which the firm merged its small-cap value and small-cap growth teams, reducing its small-cap teams to two from three, he said.
Mellon announced the equity unit changes to staff Monday morning, Mr. Porter said.
In addition to the departure of Mr. Bogar, who is also a lead international equity portfolio manager, senior portfolio managers Sean P. Fitzgibbon and William Cazalet are also leaving the company. Mr. Cazalet is also head of multifactor equity at Mellon, a spokesman said.
Senior portfolio manager Peter Goslin will take on Mr. Cazalet's management responsibilities, but the title "head of multifactor equity" will be eliminated, the spokesman wrote in an email.
"We consider these moves in the context of creating a next-generation equity investment platform, a sum greater than the component moves," the spokesman wrote of the investment team changes. "For us, this was about creating a fully integrated equity platform."
According to Mr. Porter, the restructuring will not result in any investment products merging or closing down, and is not part of cost-cutting effort.
The restructuring will result in portfolio manager changes on 15 BNY Mellon strategies, a spokesman said in an email:
- BNY Mellon Strategic Beta Emerging Markets Equity fund.
- BNY Mellon IP - MidCap Stock portfolio.
- BNY Mellon Opportunistic Midcap Value fund.
- BNY Mellon Opportunistic Small Cap fund.
- BNY Mellon VIF - Opportunistic Small Cap portfolio.
- BNY Mellon VIF - International Value portfolio.
- BNY Mellon Emerging Markets Securities fund.
- BNY Mellon Structured Midcap fund.
- BNY Mellon Balanced Opportunity fund.
- BNY Mellon International Core Equity fund.
- BNY Mellon International Small Cap fund.
- BNY Mellon Active MidCap fund.
- BNY Mellon Diversified Emerging Markets fund.
- BNY Mellon Small Cap Value fund.
- BNY Mellon Equity Income fund.
