BNY Mellon’s Pershing has signed a deal to purchase Optimal Asset Management, which provides a direct indexing solutions.
The acquisition, whose financial details are not known, forms part of the firm’s recently launched business unit Pershing X. The unit designs and build innovative solutions for the advisory industry.
Go deeper with GlobalData
Optimal Asset Management’s software offers customised direct indexing solutions to investors looking for personalised portfolios.
It is said to facilitate greater investment customisation by choosing individual equities in an index solution, including options to alter their portfolios for sustainable investments.
Pershing X president Ainslie Simmonds said: “We’re thrilled to welcome Optimal Asset Management’s founder Dr. Vijay Vaidyanathan and his talented team of software architects to Pershing X. Optimal Asset Management will help advisors at our client firms improve relationships and grow their business.”
The deal will allow Pershing to offer personalised investor portfolios in line with their values as well as tax optimisation benefits for investors. It will also enable better acquisition and retention efforts for advisers through more personalized investment planning.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalDataPershing CEO Jim Crowley said: “As part of our continued efforts to provide clients with innovative offerings, we’re delighted to now be able to offer Optimal Asset Management’s direct indexing capabilities to our advisory clients within Pershing, as well as to our institutional and retail clients within BNY Mellon’s Investment Management business.”
Commenting on the deal, Vaidyanathan said: “We’re excited about joining Pershing X and the possibilities that we can jointly deliver to clients seeking customised direct indexing solutions. We are proud of the reputation we have built at Optimal Asset Management and the industry innovation we’ve delivered.”
The direct indexing market is estimated to reach $1.5 trillion in assets under management (AUM) by 2025 from the $350bn in AUM in 2020.
