Lockwood Whitepaper Suggests Objectives-Based Investing May Help Investors Better Achieve Financial Goals and Enhance the Advisor-Investor Relationship

February 11, 2015

Integrating clients' behaviors, needs and goals evolves the traditional investment approach

KING OF PRUSSIA, Pa., February 11, 2015 – Lockwood Advisors, an affiliate of Pershing LLC, announced today the release of its latest whitepaper highlighting the benefits of using objectives-based investing, which reflects an evolution in the traditional asset allocation method of portfolio construction. The paper states that an objectives-based approach may increase the likelihood of investors achieving their goals and may help foster more meaningful relationships between financial advisors and their clients.

According to the whitepaper, advisors need to take into account that all investors do not behave rationally and the possible disconnect that could exist between the unique needs of investors and portfolios constructed through traditional asset allocation methods. Objectives-based investing evolves the traditional asset allocation approach, which centers on risk and returns, by seeking to better align investors’ needs, goals and objectives to an investment strategy.

Advisors adopting an objectives-based investing strategy can help investors maintain a long-term view of their wealth and enable advisors to counter client tendencies to make decisions based on short-term market movements. In addition, objectives-based investing may help deepen the relationship between advisors and their clients since they are more likely to have in-depth and ongoing conversations about investors’ personal goals.

Objectives-based investing is intended to help investors adhere to an investment strategy and achieve specific financial goals by reframing investment decisions and portfolio construction and redefining investors’ benchmark. Investment results are measured relative to investors’ ability to achieve personal goals and risk is defined as the likelihood of falling short of those goals.

"We are seeing a growing number of advisors use objectives-based investing strategies in advising their clients and believe it is an approach that more advisors should consider adopting,” said Joel Hempel, chief operating officer at Lockwood Advisors. “Objectives-based investing helps to keep the focus on the big picture and can minimize the chances that investors will be unduly influenced by daily fluctuations in the market that can divert them from long-term thinking."

For more information, visit www.lockwoodadvisors.com .

About BNY Mellon’s Lockwood Advisors, Inc.

Lockwood Advisors, Inc. is a leading provider of managed account solutions. As a program sponsor, Lockwood offers access to some of the industry’s leading investment managers, provides independent research on separate account managers, and develops advisory solutions to help investment professionals meet the diverse needs of their clients.

Lockwood also offers discretionary portfolio management solutions through financial institutions and independent registered investment advisers. Lockwood Advisors, Inc. is an investment adviser registered in the United States under the Investment Advisers Act of 1940, an affiliate of Pershing LLC and a wholly owned subsidiary of The Bank of New York Mellon Corporation (BNY Mellon).

About BNY Mellon's Pershing

BNY Mellon’s Pershing is a leading provider of clearing and custody services. We are uniquely positioned to help complex financial services firms transform their businesses, drive growth, maximize efficiency, and manage risk and regulation.

Wealth management and institutional firms outsource to us for trading and settlement services, investment solutions, bank and brokerage custody, middle and back office support, data insights, and business consulting.

Pershing brings together high-touch service, an open digital platform and the BNY Mellon enterprise to deliver a differentiated experience for every client.

Pershing LLC (member FINRA, NYSE, SIPC) is a BNY Mellon company. With offices around the world, Pershing has over $2 trillion in assets and millions of investor accounts. Pershing affiliates include Albridge Solutions, Inc. and Lockwood Advisors, Inc., an investment adviser registered in the United States under the Investment Advisers Act of 1940. Additional information is available on pershing.com, or follow us on LinkedIn or Twitter @Pershing.

About BNY Mellon

BNY Mellon is a global investments company dedicated to helping its clients manage and service their financial assets throughout the investment lifecycle. Whether providing financial services for institutions, corporations or individual investors, BNY Mellon delivers informed investment and wealth management and investment services in 35 countries. As of June 30, 2021, BNY Mellon had $45.0 trillion in assets under custody and/or administration, and $2.3 trillion in assets under management. BNY Mellon can act as a single point of contact for clients looking to create, trade, hold, manage, service, distribute or restructure investments. BNY Mellon is the corporate brand of The Bank of New York Mellon Corporation (NYSE: BK).Additional information is available on www.bnymellon.com. Follow us on Twitter @BNYMellon or visit our newsroom at www.bnymellon.com/newsroom for the latest company news.