Institutional-quality investment solution
available on BNY Mellon Pershing X's new Wove platform provides
low-cost portfolio customization and tax optimization
benefits
NEW
YORK, June 6, 2023 /PRNewswire/ -- BNY Mellon
(NYSE: BK) today announced a new direct indexing solution to
financial advisors, managed by Mellon1, BNY Mellon
Investment Management's indexing specialist. BNY Mellon Precision
Direct IndexingSM S&P 500® seeks to match
the performance and overall characteristics of the S&P
500® Index with an investment minimum of $250,000.
BNY Mellon Precision Direct Indexing is designed to provide
tailored strategies, portfolio customization and cost-effective tax
management. The end-to-end direct indexing solution is powered by
Mellon's 40 years of index investment expertise and tax management
experience, available through Pershing X's new advisory platform,
Wove, and includes BNY Mellon Pershing's clearing and custody
services.
Financial advisors will be able to offer customized direct
indexing to their clients, including tax-loss harvesting, capital
gains harvesting and tax transitioning within a diversified US
equity index strategy. Mellon's experienced portfolio management
team will leverage Pershing X's automated tax optimizer to identify
potential opportunities through short- and long-term wash sale
trade-offs, tracking error budgets and capital gains.
"We brought this comprehensive offering onto our Wove platform
to provide clients with the full depth and breadth of solutions
across the BNY Mellon enterprise," said Ainslie Simmonds, President of Pershing X. "With
Mellon's institutional expertise in portfolio management and
indexing, financial advisors, broker-dealers and RIAs can now focus
on growing and scaling their business."
The demand and interest for direct indexing is projected to lead
to a surge in assets, with direct indexing assets growing at a
five-year compound annual growth rate (CAGR) of 12.3%, which
equates to $825 billion in assets by
2026.2
"Investors are continually looking to grow the value of their
portfolios and have the ability to customize their underlying
holdings to achieve a range of goals, both financial and personal,"
said Stephanie Hill, Head of Index
at Mellon. "BNY Mellon Precision Direct Indexing is designed to
help them achieve this through tax alpha generation and exposure
that seeks to balance after-tax returns while maintaining market
exposure and investment preferences."
Initially available through BNY Mellon Pershing's managed
accounts platform, BNY Mellon Precision Direct Indexing is expected
to be available through BNY Mellon Investment Management in the
future.
For more information on BNY Mellon and Mellon's indexing
capabilities, visit:
https://www.pershing.com/what-we-provide/managed-account-solutions/direct-indexing.
About BNY Mellon
Established in 1784, BNY Mellon is America's oldest bank and the
first company listed on the New York Stock Exchange (NYSE: BK).
Today, BNY Mellon powers capital markets around the world through
comprehensive solutions that help clients manage and service their
financial assets throughout the investment life cycle. BNY Mellon
had $46.6 trillion in assets under
custody and/or administration and $1.9
trillion in assets under management as of March 31, 2023. BNY Mellon has been named among
Fortune's World's Most Admired Companies and Fast Company's Best
Workplaces for Innovators. BNY Mellon is the corporate brand of The
Bank of New York Mellon Corporation. Additional information is
available on www.bnymellon.com. Follow us on LinkedIn or visit our
Newsroom for the latest company news.
This Press Release is issued by BNY Mellon to members of the
press and media and the information contained herein should not be
construed as investment advice or a recommendation of any
investment strategy. It does not constitute an offer or
solicitation of securities or investment services or an endorsement
thereof in any jurisdiction or in any circumstance in which such
offer or solicitation is unlawful or not authorized.
1 Mellon is a division of
Mellon Investments Corporation (MIC).
2 The Case for Direct Indexing:
Differentiation in a Competitive Marketplace, Cerulli Associates,
December 2022.
Media Contact
Sue Watt
Email: Sue.Watt@bnymellon.com
Phone: +1 212.815.3757
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SOURCE BNY Mellon