Working with You
We understand and respect the important role other advisors play in furthering our mutual clients' goals. To that end, our wealth management professionals form strong working partnerships with our clients' attorneys, accountants and other trusted advisors helping to ensure that each client's strategy is both comprehensive and seamlessly executed.
Working for You
We also offer an array of investment, asset servicing and specialized banking services in direct support of many of the nation's leading professional firms, financial advisors and other institutions. In addition to custody and investment resources, for instance, we offer deposit and escrow arrangements, customized credit, and access to our larger organization's capabilities in areas such as foreign exchange and capital markets. As a result, our professional and institutional clients can leverage the vast capabilities of BNY Mellon and the specialized skills and experience of a wealth management leader, in the way that most directly addresses their organizations' unique needs and requirements.
For more information, please Contact Us.
Investors often say they're comfortable with their portfolio strategy, until we assess their holdings and financials, revealing a more accurate and often surprising view of their true situation. Turns out 99% of the thousands of portfolios we’ve reviewed over the years have hidden risks. Could your portfolio be one of them?
The following examples highlight some of the hidden risks and missed opportunities we see in investor portfolios. Could any of these scenarios exist in your portfolio?
of portfolios reflect little or no tax management. of portfolios carry unnecessary or unknown risk. of investment strategies are following or fleeing a trend too late. of portfolios are missing asset classes. of portfolios reflect the lack of an overall plan.
Assessing your financial situation from a macro perspective
allows us to see how everything is—or isn’t—working together.
Decisions are often made irrespective of each other, resulting in a portfolio that isn't positioned for long-term success.
Select a circle below to expand each discipline of the integrated plan.
Investment porfolios and wealth plans are often created based on circumstances, including family business interests, specific opportunities that have emerged over time, or direction from multiple advisors.
Do all your managers and advisors understand your investment strategies and decisions, and their impact on each other?
Have you considered both assets and liabilities and how they can best work together?
Investors often make the mistake of treating investments, trusts and debt as unrelated disciplines—a mistake that could hinder reaching long-term goals.
Coordinating investment decisions across and within your
wealth plan can help optimize your portfolio.
Investors often mistakenly have the same plan for every entity or don’t consider an account’s purpose when allocating investments. Understanding how your portfolio is structured is critical for portfolio success.
Family trusts can sometimes present a special opportunity for tax-efficient growth—yet many such trusts are over-allocated to low-growth assets, such as taxable bonds.
It is important to take a comprehensive look at your portfolio in order to gauge its cohesiveness. Often you'll uncover missing asset classes, similar plans for all entities or accounts, or an investment plan that doesn't match the entities' objectives. The bottom line? You need to avoid these mistakes in order for your portfolio to reach its full potential and for you to achieve your goals.
Without proper diversification, you could be missing opportunities
or exposing your portfolio to unnecessary risk.
Diversification—both across and within asset classes—is critical to portfolio success.4
Select an asset class from the charts or legend below to expose the value of strategic and comprehensive diversification.
Portfolios often are missing or underexposed to certain asset classes.
Appropriate exposure across a range of asset and sub-asset classes is critical to your investment success.
No asset class is consistently a top or bottom performer.5
Select an asset class from the table to highlight the variability in annual performance over the past 10 years.
You could have sector bets that negatively impact your portfolio returns.6
Select a sector from the chart to highlight its performance.
Reviewing your investment holdings closely may uncover
risks as well as opportunities.
High concentrations can greatly increase your portfolio’s volatility and may happen without your full knowledge.
Often in multiple-manager portfolios and mutual funds, managers may be buying the same stocks, which can lead to portfolio concentrations.
Overlap across mutual funds, managers, retirement assets, executive stock compensation and individual purchases can lead to dangerous and unknown concentrations.
Looking at and understanding the components of a bond portfolio can help uncover risks.
Often investors believe that bonds are their safest investments. High concentrations in municipal bonds of a single state, while exempting income from state taxes, can increase a portfolio's volatility.
A portfolio with an Average A- rating may still have a significant allocation to below investment grade bonds. Beneath the surface, your seemingly safe portfolio may have more risk than you realize.
Long-duration portfolios are more sensitive to interest rate volatility and could experience greater changes in value.
Sample Bond Portfolio
Understanding what you are really paying for is the first step in
making sure you receive the value you expect.
Fees and other costs are the literal price you pay to achieve your objectives. Not all costs may be clear, and you may have multiple layers. Being clear about exactly what you are paying will help you ensure your comfort with the value you receive in exchange.
Many investors incur significant markups in their bond transactions, aside from normal bid ask spread.
You contact your broker to purchase a bond.
Your broker may purchase the bond from another dealer and you may incur a markup as the bond is passed along to you.
While you may not be aware of hidden markups, they can add up quickly.
An institutional buyer may be able to purchase a bond at a better price.
The buyer will solicit offers from multiple brokers and negotiate prices on volume.
The buyer selects the best price.
This means you’ll get a much better rate.
Let’s discuss your investment strategy and uncover its potential for risk. Take the next step: select one of the options below to contact one of our wealth management experts or learn more about our approach.