BNY Mellon Investment Management is to launch a range of 14 SMA ETF portfolio models following the launch in April 2020 of its initial range of BNY Mellon-sponsored ETFs.
Available on the Envestnet advisory platform, BNY Mellon Investment Management’s ETF Model Portfolios are designed to take a holistic approach to client investing objectives, aiming to provide clients with more accurate results through rigorous application of capital market assumptions, quantitative stress testing, and tail risk analysis.
BNY Mellon Investor Solutions, an SEC-registered investment adviser that offers comprehensive portfolio management and investment advisory services to investors, is building out these models for third-party use. Building upon BNY Mellon’s nearly 50 years of experience in the Outsourced Chief Investment Officer (OCIO) space, BNY Mellon Investor Solutions draws upon the team’s deep experience developing and delivering asset allocation strategies to sophisticated investors in creating the ETF model portfolios.
Within the BNY Mellon enterprise, model portfolios are also offered through Pershing affiliate Lockwood Advisors, Inc. (Lockwood), an SEC-registered investment adviser founded in 1996. In addition to the BNY Mellon ETF Model Portfolios, Lockwood Asset Allocation Portfolios will also be available to firms using the Envestnet platform by the end of first quarter.
Lockwood Asset Allocation Portfolios leverage the BNY Mellon Investor Solutions Manager Research Group and include five core ETF/mutual fund models targeted to different levels of potential risk, ranging from conservative to aggressive. Since 2003, Lockwood Asset Allocation Portfolios have combined strategically driven asset allocation, investment selection and portfolio construction expertise with the convenience of one account. As the marketplace evolves, Lockwood continues to innovate and expand its product offerings.
BNY Mellon’s ETF Model Portfolios’ design methodology will follow a multi-step, iterative process designed around specific client objectives and preferences, cognisant of market realities, and includes both BNY Mellon and non-BNY Mellon ETF products. The seven model portfolio strategies, which offer diversification across multiple levels without an overlay fee, are each available in both tax-free and taxable versions and include:
BNY Mellon Growth ETF Model
BNY Mellon Growth & Income ETF Model
BNY Mellon Balanced ETF Model
BNY Mellon Stable Growth ETF Model
BNY Mellon Income ETF Model
BNY Mellon Stability ETF Model
BNY Mellon Stable Income ETF Model
“When we started thinking about model portfolios, we began by asking, ‘What is the client’s desired outcome?’ We are delighted to offer clients,—whether most focused on outcomes or risk, – a new perspective on model portfolios that is highly relatable to client goals and objectives and affords a more nuanced appreciation of factors like growth, income, and stability,” says Stephanie Pierce, Chief Executive Officer of ETF, Index, and Cash Investment Strategies for BNY Mellon Investment Management. “We launched BNY Mellon-sponsored ETFs to strengthen and deepen our relationships with clients by meeting their evolving needs. With the introduction of our model portfolios, we are continuing to take a leadership position in the space by shifting the conversation around traditional model allocations.”
Adds Jamie Lewin, Head of BNY Mellon Investor Solutions, says: “The introduction of ETF model portfolios is another example of delivering upon our broader strategy of making our leading capabilities available across a greater range of clients to help them achieve their investing goals. While some of these services had been offered previously to our institutional clients, through the vehicle of ETF model portfolios we are now opening up that capability to wider audiences.”