Pershing’s second-quarter revenue rises on lower money market waivers

Investors poured fewer dollars into Pershing amid falling stocks and rising interest rates, but the custodian giant launched a new retirement tool for a major government client.

BNY Mellon’s Pershing and its Asset Servicing unit have launched “what is essentially a self-directed vehicle” allowing up to six million pension plan participants to choose from some 5,000 funds, BNY’s new CEO said, Robin Vince, during a conference call with analysts on July 15. second quarter results. Vince, leading his first earnings call ahead of CEO Todd Gibbons’ retirement go out at the end of next month, described the client as “a large government agency.”

Company officials declined to state the name of the agency or whether the government entity is a new or existing relationship with Pershing at the local, state or federal level. The new service opened on June 1.

Net new assets for the quarter are $2 billion lower the amount of the first trimester and behind their record pace of a year ago, when strong stock returns and a change in the company’s calculation formula boosted flows. Vince cited the new retirement tool as an example of the company’s strong pipeline and two BNY units working in tandem.

“While the earnings are hopefully good, the really interesting thing is how they’ve come together,” Vince told analysts, according to a transcript of Seeking Alpha. “And I think maybe it’s different than it would have been a few years ago.”

Scroll through the slideshow for more key takeaways for financial advisors and other wealth management professionals. To cover the income of the previous quarter, Click here. To see where the firm was at the end of 2021, follow this link.

Note: Results include BNY Mellon-owned Pershing, which accounts for most of the company’s Market and Wealth Services segment, and those of the megabank’s Investment and Wealth Management unit.