The new business unit is dedicated to meeting current and anticipated investing and risk management needs for retirement plan and other institutional clients, according to BNY Mellon. Kim Mustin, BNY Mellon Investment Management’s head of North American distribution, says the firm is looking to add non-traditional investment solutions to complement its suite of more traditional retirement plan and insurance offerings.
Gordon has more than 15 years of experience within the retirement and insurance marketplace. He has worked in asset-liability management for both institutions and individuals, and has experience in distribution, marketing and investment technology solutions.
Most recently, Gordon was managing director of non-traditional solutions and special situations for BNY Mellon Investment Management. In that role, he led and will continue to lead the home equity retirement solutions business. Gordon says the home equity unit is engaged in the purchase, securitization and service of reverse mortgages. The unit also provides advisory services to brokers, financial advisers and asset managers on how reverse mortgages can fit into retirement planning.
Gordon will report to Mustin in his new role. Prior to joining BNY Mellon, Gordon was an executive at New York Life Insurance Company.
“The retirement industry is rapidly evolving from accumulation as clients’ primary objective,” Gordon says. “In less than three years, more than 50% of U.S. individual assets will be in retirement transition or retirement distribution. Complicating matters, an estimated $6 trillion dollar gap exists between what these retirees have accumulated and what they will need in transition and in terms of income they will need in retirement.”
Gordon adds that the new BNY Mellon business unit will focus on solving some of these questions. He says the wide-ranging nature of the retirement crisis will require new coordination both within firms and between providers.
“It is clear that to solve this challenge, we must explore various combinations of investment excellence, guarantees, insurance and banking concepts, incorporating non-traditional and illiquid assets into portfolio construction, as well as technology innovation,” Gordon continues.
He says BNY Mellon is bringing “16 world-class investment managers” together to develop varied products and strategies, including liability driven investing; direct lending; collateralized loan obligations; and core fixed income.
“Our combined capabilities, associated with asset management, banking and insurance, will reinforce our enhanced efforts in the retirement and insurance markets,” he says.
The new business unit is part of BNY Mellon Investment Management, which encompasses BNY Mellon’s affiliated investment management firms, wealth management services and global distribution companies. More information can be found at www.bnymellon.com.