Provider Profiles
BNY Mellon
| Profile | |
| Business Model/Type§ | Proprietary/ non-proprietary |
| Year Entered Into OCIO Business | 1975 |
| No. of Relationship Managers/Salespeople | 13 |
| No. of OCIO Portfolio Managers | 13 |
| OCIO % of Total Firm Revenue | Does not disclose |
| No. of Clients, Full Discretion | 371 |
| Full Discretionary Assets | |
| Total Full Discretionary OCIO Assets | $16.7B |
| Discretionary Assets by Fund Type | |
| Defined Benefit | $7.5B |
| 401(k), 403(b), Other DC | $1.3B |
| Endowments/Foundation | $3.5B |
| Health Care | |
| Other | $4.4B |
| Portfolio Construction |
Key to BNY Mellon's process of setting asset allocation and creating a policy portfolio that aligns with an investor’s objectives ensuring that the portfolio is “robust”, and considers the distribution of possible outcomes that can be realized in relation to an assumption of asset class returns. In order to achieve robustness in the asset allocation, their portfolio construction process utilizes Monte Carlo simulation with non-normal distributions to stress test key variables/inputs into the portfolio construction process as a way to overcome forecast error in asset class return assumptions. Reducing the sensitivity to forecast error in assumptions provides a more stable policy portfolio that aligns with desired outcomes. |
| § | OCIO only: Open-architecture (no proprietary products used): Investment outsourcing is only business line. |
| OCIO + other: An open-architecture/manager-of-manager investment outsourcing platform as one of multiple business lines. | |
| Implemented consulting: i.e. consulting firm that also has discretion over assigned assets. | |
| Proprietary/non-proprietary: An investment outsourcing platform that offers proprietary products alongside non-proprietary products. |