Investment Innovation In Action

Investment Innovation In Action
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Diversification meets the 21st century.

Today's slower economic growth and increased market volatility require new investment ideas.

At BNY Mellon Wealth Management, innovative thinking informs our investment approach, from initial research to strategic asset allocation to the deployment of investment ideas. Our ability to identify market

inefficiencies, pursue new sources of diversification and create industry leading solutions helps investors navigate ever-changing market conditions to help our clients achieve their wealth objectives.

Innovation in Action
Capitalizing on market dislocations
Not all investment managers were able to capitalize on opportunities created by the subprime mortgage crisis. Recognizing that spreads between corporate and municipal bonds were at historic levels wasn’t enough. At BNY Mellon Wealth Management, we were able to put the specialized skills of our fixed income team to work and develop an opportunistic municipal bond solution that sought to provide an attractive tax-sensitive yield and total return. This solution has provided incremental value as part of a well-diversified fixed income strategy.

Navigating economic headwinds
In 2010, economic uncertainty and increased market volatility created an opportunity to benefit from long/short positions in commodities, currencies, equities and bonds. In pursuing this new source of diversification, we leveraged the specialized skills of a third party and introduced a managed futures solution in our portfolios. Adding an asset type that has historically had a low correlation to traditional equities and bonds is valuable as a diversifier in this environment of global turmoil.

Leveraging the specialized expertise of BNY Mellon´s global asset managers
Through our strategic architecture approach, we have access to the exceptional, specialized capabilities of BNY Mellon´s asset managers. This enables us to collaborate on investment ideas and capitalize on investment opportunities in a timely way, while tailoring solutions to the needs of private clients. In the fall of 2010, for example, we leveraged the stock selection skills of several BNY Mellon boutiques to provide our clients with a unique solution that integrated opportunistic large cap equity investments with active tax management.
Innovation in Action
Innovation: Recent Examples
The timeline below illustrates key market observations made and actions that our team took as a result.
Innovation: Recent Examples
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