A little more than a year after its launch, BNY Mellon Investment Management has closed Spectrum — its separately managed accounts (SMA) business in Asia that catered to high net worth individuals — citing slow reception from the market.
Unveiled in January 2014, Spectrum was then considered a breakthrough platform because it allowed individuals to access SMA, usually reserved for institutional investors with a minimum $100 million investment, for as little as $1 million.
Here’s the brief statement about the closure of Spectrum sent to NexChange.
“BNY Mellon confirms its recent decision to withdraw from our separately managed accounts business, Spectrum, in Asia. We are actively working with our counterparties to manage this matter. This decision has no impact on BNY Mellon’s other asset management, wealth management and investment services offerings, or our clients benefiting from those offerings. We remain fully committed to the Asia Pacific region as we have been for nearly 100 years.”
“Unfortunately the development of the market has been slower than we anticipated. The business decision to withdraw the Spectrum from the market was difficult.”
A company spokesperson denied some media reports that BNY Mellon spent $50 million – $60 million on SMA. “It is a small fraction of the amounts that have been rumored,” the spokesperson told NexChange without giving the actual figure.
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