BNY Mellon Beta Management Tops $1 Billion in Assets under Management
January 07 2009 - 7:47AM
PR Newswire (US)
Business Utilizes Derivatives Strategies To Achieve Desired Asset
Allocations in Illiquid Markets SAN FRANCISCO, Jan. 7
/PRNewswire-FirstCall/ -- BNY Mellon Beta Management, part of BNY
Mellon Asset Management, has announced that it has passed the
milestone of $1 billion in assets under management. The business,
which was launched in mid-2007, utilizes derivatives and futures to
facilitate asset allocation shifts in portfolios that hold illiquid
or hard-to-sell assets. It was launched to specifically help
institutions facing asset allocation decisions during periods of
market turmoil, and it has the ability to overlay existing assets
of an institutional investor and change the asset allocation
profile of the portfolio without requiring the sale of the
underlying assets. "We are building this service to help
institutional clients efficiently reach their asset allocation
targets at a time when many of their fixed income holdings are
illiquid," said Mark Keleher, chief executive officer of BNY Mellon
Beta Management. "We are using cost-effective instruments such as
futures, forward agreements, exchange-traded funds, and swaps; and
our approach can be tailored to meet specific client needs."
Derivatives also can be used to manage residual cash across client
portfolios. Keleher said that many institutions are faced with
allocations that do not meet their policy benchmark targets because
equities have fallen much faster in value than bonds. "Some
portfolios that are designed to be 60 percent equities and 40
percent bonds have now become 50 percent bonds and 50 percent
equities," he said. "However, the institutions are having
difficulty selling enough bonds so they can buy additional
equities. By using derivatives, we can help them reach their
goals." The Bank of New York Mellon Corporation is a global
financial services company focused on helping clients manage and
service their financial assets, operating in 34 countries and
serving more than 100 markets. The company is a leading provider of
financial services for institutions, corporations and
high-net-worth individuals, providing superior asset management and
wealth management, asset servicing, issuer services, clearing
services and treasury services through a worldwide client-focused
team. It has $22.4 trillion in assets under custody and
administration, approximately $1.1 trillion in assets under
management and services $12 trillion in outstanding debt.
Additional information is available at bnymellon.com. DATASOURCE:
The Bank of New York Mellon Corporation CONTACT: Mike Dunn of The
Bank of New York Mellon Corporation, +1-212-922-7859, Web Site:
http://www.bnymellon.com/
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