Bank of New York Mellon, a global leader in securities servicing and asset management, has introduced what it says is the first platform to offer a full range of brokerage and administrati
Bank of New York Mellon, a global leader in securities servicing and asset management, has introduced what it says is the first platform to offer a full range of brokerage and administration services to managers of 130/30 strategies, drawing on enhancements made to the prime brokerage capabilities at its subsidiary, Pershing.
The company can now provide 130/30 funds, whose managers overweight stocks they deem most attractive and short stocks they expect to underperform, with a wide range of prime services, including securities lending, execution and financing, and asset servicing including custody, fund accounting and administration, and collateral management.
‘Bank of New York Mellon is uniquely positioned to provide these comprehensive solutions,’ says president Gerald Hassell. ‘We are bringing to the market a full suite of integrated services and financing functions needed to manage eligible 130/30 funds such as limited partnerships, 40 Act Funds, hedge funds and separately managed accounts.’
The bank says that while the popularity of 130/30 strategies is increasing and enable investors to incorporate a broader range of knowledge into their investment processes, they also present challenges related to managing short positions, and can add complexity to a fund’s operational and technology infrastructure.
Pershing provides services to more than 1,150 institutional and retail financial organisations as well as independent investment advisers who collectively represent more than five million active investors.
Bank of New York Mellon operates in 37 countries and more than 100 markets, providing financial services to institutions, corporations and high net worth individuals. The group formed by the merger of Bank of New York and Mellon earlier this year has more than USD20trn in assets under custody and administration and more than USD1trn in assets under management.
