Bank of New York Mellon Corp. is expanding further into the fast-growing retail wealth market by acquiring the Archer technology firm to handle infrastructure and distribution of managed accounts to financial advisers and their clients.
The acquisition of Berwyn, Pennsylvania-based Archer will also help BNY market its own investment strategies and custody bank business, according to a statement Thursday. The deal is expected to be completed in the fourth quarter, pending regulatory approval. Terms weren’t disclosed.
“Managed accounts — and very specifically retail-managed accounts — are one of the fastest-growing products in the asset-management industry,” Emily Portney, BNY’s global head of asset servicing, said in an interview.
The biggest money managers are increasingly focused on the US wealth market, partnering or buying technology and firms to distribute managed accounts, model portfolios and private assets to wealthy clients. The retail managed account business in the US is projected to grow to more than $8 trillion by 2027 from almost $5 trillion last year, according to BNY’s analysis of data from Cerulli Associates.
Archer was founded in 2000 to help investment managers outsource technology and middle- and back-office operations. Asset managers use its technology for accounting, data reporting and reconciliation of transactions, and it then connects with banks and investment platforms that distribute financial investment strategies.
BNY had almost $50 trillion of assets under custody and administration as of June 30.
Most firms place a limit on advisors’ sales of alternative investments to clients in the neighborhood of 10% a customer’s net worth.
Those jumping ship include women advisors and breakaways.
Firms in New York and Arizona are the latest additions to the mega-RIA.
The agent, Todd Bernstein, 67, has been charged with four counts of insurance fraud linked to allegedly switching clients from one set of annuities to another.
“While harm certainly occurred, it was not the cataclysmic harm that can justify a nearly half billion-dollar award to the State,” Justice Peter Moulton wrote, while Trump will face limits in his ability to do business in New York.
Orion's Tom Wilson on delivering coordinated, high-touch service in a world where returns alone no longer set you apart.
Barely a decade old, registered index-linked annuities have quickly surged in popularity, thanks to their unique blend of protection and growth potential—an appealing option for investors looking to chart a steadier course through today's choppy market waters, says Myles Lambert, Brighthouse Financial.
