BNY Mellon’s Pershing Expands Offerings in the Latin American Market

June 12, 2019

Launches Offshore Asset Allocation Portfolios;

Announces a new mutual fund program: Offshore Flex

PHOENIX — BNY Mellon’s Pershing (“Pershing”) today announced new solutions designed to help broker-dealers and advisors capitalize on the opportunities in the fast-growing Latin American market.

Lockwood Offshore Asset Allocation Portfolios, launched today, will provide investors domiciled in Argentina, Brazil and Mexico with a series of risk-based, multi-style professionally managed portfolios. Meanwhile, Offshore Flex, to launch in the fourth quarter, will deliver a flexible mutual fund program for both fee- and commission-based environments.

“We see continued growth in offshore assets on our platform, with the fastest growth coming from Latin America,” said John Ward, managing director of global client relationships at Pershing. “Industry consolidation, an inflow of new advisors to independent broker-dealers, and increased investor allocation to investments outside of domestic markets are creating new opportunities for our clients. Whether it’s implementing new solutions, or supporting them as they adapt to industry changes, our goal is to continue our commitment to clients in this important market.”

Latin American assets on the Pershing platform have grown more than 35 percent since 2016, reaching more than $90 billion in April 2019.

Bringing managed accounts to Latin American investors: Lockwood Offshore Asset Allocation Portfolios

Recognizing the need for managed accounts in the Latin American market, Pershing has significantly enhanced its managed account solutions platform, which can now support the execution and allocation of offshore exchange-traded funds (ETFs), as well as models that include offshore ETFs and mutual funds. Built on this enhanced platform the Lockwood Offshore Asset Allocation Portfolios include a combination of ETFs and mutual funds, offering 11 core models designed for investors with different risk tolerance levels.

“Latin American investors continue to allocate a significant portion of their investments to domestic fixed income vehicles,” said Joel Hempel, chief operating officer of Lockwood at BNY Mellon’s Pershing. “Our professionally managed portfolios will bring investors in this market a sophisticated solution designed to help them improve global diversification and portfolio risk management.”

Lockwood Offshore Asset Allocation Portfolios will be available to Pershing’s U.S.-based broker-dealer and advisory clients serving Latin American investors1, helping them achieve:

  • Efficiency by capitalizing on an active-passive blend philosophy to create portfolios that can serve as the core of an investor’s portfolio.
  • Discipline by leveraging a disciplined investment approach to help stay the course during short-term market disruptions and designed to deliver more consistent results over the long term.
  • Risk management by ongoing monitoring and periodic rebalancing to help keep investor portfolios aligned with targeted risk and return objectives through changing market conditions.

The Lockwood Offshore Asset Allocation Portfolios employ an institutional investment approach that seeks to deliver consistent, risk-controlled returns over the long-term and are managed on a fully discretionary basis.

Announcing a new mutual fund program: Offshore Flex

BNY Mellon’s Pershing also announced today that it will be launching a new mutual fund program for Latin American investors in the fourth quarter of 2019. The program will feature offshore funds from different fund families and offer a flexible approach that will complement fee-only, fee-based and commission-based brokerage environments. Offshore Flex will not have program minimums or short-term holding periods, nor will it have any ticket charges—allowing more money to work within the investment and reducing the cost of doing business for the advisor.

1 In Argentina, Brazil, and Mexico. Not available to residents of the United States.

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