Credible Return Solutions - Not 'Products' - Will Distinguish the Winners in Asset Management and Help Meet Client Objectives
June 04 2009 - 3:00PM
PR Newswire (US)
Newton's all change white paper identifies winning attributes for
survival in asset management LONDON, June 4 /PRNewswire-FirstCall/
-- Newton*, part of BNY Mellon Asset Management, believes that
asset managers that can provide credible return solutions that meet
clients' objectives versus 'products', will emerge as the winners
in the aftermath of the financial crisis. This is just one of the
key findings from a Newton white paper titled "The expected impact
of all change on the asset management industry". The white paper is
centered on Newton's all change theme, which explores the
implications of the significant deleveraging brought about by the
popping of the credit bubble, and identifies eight attributes which
Newton believes will differentiate the winners within asset
management in years to come. Helena Morrissey, CEO of Newton, said:
"This white paper analyzes the sea change that needs to take place
in order for asset managers to adapt to the new environment." "Over
the last two decades the industry saw a shift towards a more
distribution and product-driven model, in which credibility and
success were typically associated with the size of a firm's assets
under management. However, poor performance from some of the
industry's top names, together with general disappointment with
absolute returns, has led to a trend reversal. In the future, we
believe that the reputation and culture of an organization will
depend more on its ability to deliver consistent investment
performance in a clear and transparent manner. This 'back to
basics' trend is to be welcomed, as the industry seeks to regain
the trust of its clients. We will have achieved success when
solutions to real needs are bought by consumers, instead of
products being sold." Complex financial instruments and black box
models, which are perceived to have contributed significantly to
the current financial crisis, have been widely discredited and
investors and their advisers are turning to investment propositions
that are transparent, simple and consistent. The white paper
reveals that those asset managers with 'proven track records,
tested processes, and robust and demonstrable risk management' will
be highly prized and attract the most investor interest. Newton
believes that just as people need and want a doctor or a lawyer,
they should be able to seek out a money manager who they trust and
with whom they build a long term relationship. The attributes of
winning asset management firms identified in the white paper
include: 1. Delivery of strong and consistent investment
performance 2. Organizational structures that attract and retain
top investment professionals 3. Clear branding and a conviction
about what the brand stands for 4. Close relationships with clients
and an emphasis on service 5. Distribution efficiencies and scale,
balanced by an investment-led focus 6. Ability to operate
successfully within a much tighter regulatory framework 7. Simple
and transparent investment approaches 8. Ability to deal
successfully with the structural shift from DB to DC Morrissey
concluded: "The implications identified in our all change theme are
profound and no economy, sector nor asset class is immune. It is
clear that those companies that can anticipate and adjust their
approach in the aftermath of the credit crisis will emerge as the
winners. The purpose of this paper is to stimulate debate at the
wider industry level around how the asset management industry can
best do that." Notes to Editors: Newton Investment Management
Limited is a London-based global asset management subsidiary of The
Bank of New York Mellon Corporation and part of BNY Mellon Asset
Management. With assets under management of more than $48 billion,
including assets managed as dual officers for The Bank of New York
Mellon, Newton's group of affiliated companies provides a broad
range of award-winning investment products and services to
individuals, pension funds, charities and corporations. News and
other information about Newton is available at
http://www.newton.co.uk/. BNY Mellon Asset Management is the
umbrella organisation for The Bank of New York Mellon Corporation's
affiliated investment management firms and global distribution
companies. 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 $19.5 trillion in assets under custody and
administration, $881 billion in assets under management, services
more than $11 trillion in outstanding debt and processes global
payments averaging $1.8 trillion per day. Additional information is
available at http://www.bnymellon.com/. *'Newton' refers to the
following group of affiliated companies: Newton Investment
Management Limited, Newton Capital Management Limited, Newton
International Investment Management Limited, Newton Capital
Management LLC and Newton Fund Managers (CI) Limited. Assets under
management include assets managed by all of these companies except
Newton Capital Management LLC, which provides marketing services in
the U.S. for Newton Capital Management Limited. Except for Newton
Capital Management LLC and Newton Capital Management Limited, none
of the other Newton companies offer services in the US. Newton
Capital Management Limited is an investment management firm
authorized and regulated in the United Kingdom by the Financial
Services Authority in the conduct of investment business and is a
wholly owned subsidiary of The Bank of New York Mellon Corporation.
Registered in England no: 2675952. Newton Capital Management
Limited is registered in the United States as an investment adviser
under the Investment Advisers Act of 1940. All information source
BNY Mellon Asset Management as at 31 March 2009. This press release
is qualified for issuance in the UK and US and is for information
purposes only. 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 authorised. This press release is
issued by BNY Mellon Asset Management (US) and BNY Mellon Asset
Management International Limited (ex-US) to members of the
financial press and media and the information contained herein
should not be construed as investment advice. Past performance is
not a guide to future performance. Registered office of BNY Mellon
Asset Management International: The Bank of New York Mellon Centre,
160 Queen Victoria Street, London, EC4V 4LA. Registered in England
no. 1118580. Authorised and regulated by the Financial Services
Authority A Bank of New York Mellon Company(SM) DATASOURCE: The
Bank of New York Mellon Corporation; Newton CONTACT: Patrice
Kozlowski, +1-212-922-6030, , or Vee Montebello, +44-20-7163-6246,
, both of The Bank of New York Mellon Corporation Web Site:
http://www.bnymellon.com/
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