Planned to spin off later this year, the separately managed accounts platform will be established by its Hong Kong subsidiary, which the lender claims to be the first of its kind in Asia.
Considering the requirements of Asian investors, the US company is designing the platform, which will be offered to certain private banks and other wealth management providers to better serve their high-net-worth individual clients.
BNY Mellon Hong Kong managed accounts subsidiary president and chief executive officer AJ Harper said, "Separately managed accounts are a very effective way for professional wealth managers to deliver fully transparent, customized portfolios to their clients."
"They provide individual investors access to investment portfolios which have previously been beyond their reach, and traditionally only available to institutional investors at high minimum thresh-holds," Harper concluded.
The company said that its platform will be based on open architecture that will offer multi-manager and multi-currency portfolios at an entry level of less than $1m per portfolio.
Offering flexibility, control, and transparency, a separately managed account is a portfolio of securities directly owned by the investor and managed according to a specific discipline and/or style by a professional investment manager.
Operating in 36 countries and more than 100 markets, BNY Mellon had $26.3trn in assets under custody and/or administration, and $1.4trn in assets under management, as of 31 March 2013.
