Yahoo Finance BNY Mellon (BK) Expands Indexing Suite, Launches Tax Solutions
The Bank of New York Mellon Corporation BK has launched customized tax solutions, along with expanding its direct indexing suite, BNY Mellon Precision Direct Indexing. The move is expected to help advisors select a strategy that best aligns with their clients’ investment goals and objectives.
The BNY Mellon Precision Direct Indexing will be available through BNY Mellon Pershing X’s Wove platform and BNY Mellon Investment Management.
Along with the expanded direct indexing suite, tax transition management and tax overlay management will be offered by BNY Mellon.
Now, advisors will be able to migrate a portfolio from one exposure to another through tax transition management, which takes into consideration time horizon, tax budget, desired tracking error and composite assets.
Also, ongoing tax overlay management can be applied around a customized set of assets, including models and customized portfolios.
In addition to BNY Mellon Precision Direct Indexing S&P 500, advisors will be able to access five strategies within the direct indexing suite.
Stephanie Hill, the head of Index at Mellon, stated, “Our goal is to bring institutional-quality index management to the retail investors in a tax-efficient way. With this expansion of our services, we have strengthened our ability to support financial advisors as they strive to better serve their clients and scale their businesses. With over 40 years of index investment expertise and 30 years of tax management experience, we are well-positioned within the industry to help investors generate tax alpha and grow the value of their portfolios.”
For a long time now, BNY Mellon has been undertaking several growth initiatives, including launching new services, digitizing operations and making strategic buyouts. In 2021, the company, through its subsidiary, acquired Optimal Asset Management. In 2022, it divested BNY Alcentra Group Holdings, Inc. to Franklin Resources.
In September 2023, BNY Mellon entered a partnership with a payments company named Trustly to launch an open banking payment solution, Bankify.
This March, BK announced a partnership expansion between its Investment Management business and alternative credit specialist CIFC, which will enhance product offerings across both public and private markets, particularly in the U.S. private credit.
Over the past six months, BK shares have gained 23.9% compared with the industry’s growth of 25.6%.
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Currently, BNY Mellon carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Growth Initiatives by Other Finance Firms
Last month, Fifth Third Bancorp FITB, in collaboration with Bottomline, launched Enhanced Payables, a new payment platform powered by the latter’s business payments network, Paymode-X.
Enhanced Payables integrates Bottomline’s industry-leading business payment technology and FITB's wide-ranging banking services to offer customers a diverse range of payment modes.
With the new service, customers can streamline their payment processes, efficiently manage their cash flow and boost overall efficiency.
Likewise, The PNC Financial Services Group, Inc. PNC launched the PNC Cash Unlimited Visa Signature credit card. The credit card offers simple but valuable rewards with an unlimited 2% cash back on all eligible purchases.
Nate Bacon, head of credit cards at PNC Bank, stated, "The PNC Cash Unlimited Visa Signature credit card is built around the principle of offering competitive, uncomplicated value to our clients."
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