BNY Mellon gets Hong Kong regulatory approval for SMA business
BNY Mellon has received approval from Hong Kong’s Securities and Finance Commission (SFC) to establish a separately managed accounts business, the first of its kind in Asia.
The business will launch later this year and will be marketed towards Asian investors with a particular emphasis on private banks and wealth managers working with the region’s burgeoning high-net worth (HNWI) population.
“Separately managed accounts are a very effective way for professional wealth managers to deliver fully transparent, customised portfolios to their clients. They provide individual investors to investment portfolios which have previously been beyond their reach,” said AJ Harper, president and chief executive officer at BNY Mellon’s Hong Kong managed accounts subsidiary.
“What makes our platform so unique to Asia-Pacific is that it will be the first open architecture offering that provides multi-manager and multi-currency portfolios at an entry level of less than $1 million per portfolio,” continued Harper.
Asia’s HNWI population is growing at a rate faster than anywhere else in the world, according to the 2013 World Wealth Report, compiled by RBC Wealth Management and Capgemini. The study said the region’s HNWI population increased by 9.4% to reach 3.68 million, and now has $12 trillion in assets. The region is poised to overtake North America to become the world’s largest HNWI population centre within the next few years.
“We believe the growing wealth in the region (APAC) has created a real need for this type of platform,” commented Steve Lackey, Asia-Pacific chairman at BNY Mellon.