BNY Mellon further expands separately managed accounts business

06 December 2013   Category: News, Asia, Hong Kong, Singapore   By Asia Asset Management

BNY Mellon announced on December 5 the expansion of the geographic footprint of its Asia-Pacific separately managed accounts business (SMA), making it the first of its kind in Asia, the firm said in a press release. It also announced a key appointment to the business’ executive team.

Specifically, the company has:

  • Added Singapore to Hong Kong as the jurisdictions in which the Asia-Pacific SMA business can operate; and
  • Named 22-year financial services industry veteran Chris Faddy as Head of Distribution of Managed Investments, expanding the core executive team of the Asia-Pacific SMA business.

The news builds on BNY Mellon’s receipt of a Capital Markets Services (CMS) license in Singapore and gives it the ability to offer a unique SMA platform in Asia’s two largest private banking and wealth management hubs.

The firm’s SMA platform gives wealth managers the ability to offer clients multi-manager and multi-currency portfolios at an entry level of less than US$1 million per portfolio, said the press release, allowing individual investors access to investment strategies that leading global and Asian asset managers typically reserve for institutional investors.

AJ Harper, president and CEO for BNY Mellon’s Asia-Pacific SMA business said: “We want to be the first in Asia to provide a solution to private bankers and asset managers who seek the latest investment infrastructure and educational training now required to meet client demand for high quality discretionary advice.”

Chris Faddy will be responsible for expanding the business initially in the main financial hubs of Singapore and Hong Kong. He will identify and work with financial intermediaries in both centres looking to establish or enhance their discretionary portfolio management services into best practice high net worth investment propositions. He will also be responsible for identifying new markets, overseeing the wholesale team build out and the SMA marketing and educational initiatives. Mr. Faddy joins from Credit Suisse Asset Management in Singapore where he served as head of distribution for Asia, ex-Japan. He previously led the distribution business in Asia-Pacific for Barclays Capital Fund Solutions.

Mr. Harper added: “We are seeing demand from some highly engaged intermediaries wanting to leap ahead of competition as a result of major shifts in Asia’s private banking industry that are altering the ways in which affluent investors and their families manage wealth and the services they expect from their advisors.”

Today’s announcements cap off a series of milestones for BNY Mellon’s SMA business in Asia, which is expected to culminate with a formal launch early next year. It received license approval from the Hong Kong Securities and Futures Commission in June. In November, the Monetary Authority of Singapore granted it a CMS license, paving the way to offer the SMA platform and investment management services.

“The availability of our SMA platform in Asia furnishes us with a greater ability to serve as a critical liaison between private bankers and global asset managers and provide access and scale in the fast growing Asian market,” said Steve Lackey, Asia-Pacific chairman, BNY Mellon. “Singapore and Hong Kong are critical markets for BNY Mellon’s Asia operations, and we want to support their status as elite private banking and wealth management centres in Asia through the introduction of innovative investment solutions.”