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December 3, 2021

BNY Mellon’s Pershing to buy Optimal Asset Management

By Verdict Staff

BNY Mellon’s Pershing has signed a deal to purchase Optimal Asset Management, which provides a direct indexing solutions.

The acquisition, whose financial details are not known, forms part of the firm’s recently launched business unit Pershing X. The unit designs and build innovative solutions for the advisory industry.

Optimal Asset Management’s software offers customised direct indexing solutions to investors looking for personalised portfolios.

It is said to facilitate greater investment customisation by choosing individual equities in an index solution, including options to alter their portfolios for sustainable investments.

Pershing X president Ainslie Simmonds said: “We’re thrilled to welcome Optimal Asset Management’s founder Dr. Vijay Vaidyanathan and his talented team of software architects to Pershing X. Optimal Asset Management will help advisors at our client firms improve relationships and grow their business.”

The deal will allow Pershing to offer personalised investor portfolios in line with their values as well as tax optimisation benefits for investors. It will also enable better acquisition and retention efforts for advisers through more personalized investment planning.

Pershing CEO Jim Crowley said: “As part of our continued efforts to provide clients with innovative offerings, we’re delighted to now be able to offer Optimal Asset Management’s direct indexing capabilities to our advisory clients within Pershing, as well as to our institutional and retail clients within BNY Mellon’s Investment Management business.”

Commenting on the deal, Vaidyanathan said: “We’re excited about joining Pershing X and the possibilities that we can jointly deliver to clients seeking customised direct indexing solutions. We are proud of the reputation we have built at Optimal Asset Management and the industry innovation we’ve delivered.”

The direct indexing market is estimated to reach $1.5 trillion in assets under management (AUM) by 2025 from the $350bn in AUM in 2020.

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