BNY Mellon Predicts Record Asset Manager Replacements In Q3 and Q4

Bank of New York Mellon's (NYSE: BK) Mellon Transition Management division is predicting that a record number of financial institutions such as pension funds and endowments will replace their asset managers in the third and fourth quarters of 2009.

Mark Keleher, CEO of Mellon Transition Management, said the general trend over the last six months has been for institutions to increase their exposure to indexing and longer-duration bond strategies. He added that they are seeking to reduce risk, which appears to include scaling back on firms actively managing assets.

Keleher said he expects the number of transitions executed in the third and fourth quarters of 2009 to reach record numbers. He based this prediction on the more than 40 percent increase in the number of pre-trade inquiries during the first five months of 2009 and the substantial jump in executed transitions in the second quarter of 2009 versus the 2009 first quarter.

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