BNY Mellon Investment Management, which has 80% of U.S. pension plans under custody, is making a concerted effort to gain a greater share of the defined contribution (DC) business, says Michael Gordon, head of retirement, insurance and strategic solutions for BNY Mellon.
“We have a huge presence in the defined benefit (DB)
market,” Gordon says. “We consider this to be a core part of who we are and
what we do. We also have a strong legacy of being a good DC player. We have a
very talented and professional organization to provide solutions, and we are
very much committed to growing this market, and to help participants as they
grow their savings and reach retirement.”
To distinguish itself in the DC market, BNY Mellon plans on creating “innovative solutions” for advisers, recordkeepers and participants, Gordon says. For example, BNY Mellon is committed to “developing the next generation QDIA that can help people manage risk and take them to and through retirement,” he says. Noting BNY Mellon’s extensive experience with DB plans and liability-driven investing, Gordon says, “We believe we can bring a lot of that expertise to the DC world. We believe we are the right institution to bring to bear the right capabilities to help participants be successful and reach better outcomes.”
As part of this endeavor, BNYMellon is launching a biannual print and digital magazine called “Planet DC” aimed at retirement plan advisers and sponsors, recordkeepers and platform managers.
The publication will cover emerging best practices for retirement plans, investments, fiduciary and regulatory developments, and participant engagement and communication, says Mark Browne, head of institutional and retirement marketing for BNY Mellon. The inaugural issue discusses the Department of Labor’s (DOL) proposed fiduciary rule and holistic financial wellness, among other topics, he notes.
Our goal is to help reframe the conversations among advisers and plan sponsors to help set participants on a more secure course, Gordon says. “In a perfect world, Americans would like to retire with enough money to live comfortably and leave a family legacy once they are gone,” Gordon says. “Unfortunately, that’s not a reality for many today. The move from DB to DC has transferred the responsibility for choosing and managing retirement planning to individuals who are not investment experts. At BNY Mellon, we strive to develop solutions and technologies that can better position individuals to reach their targeted retirement goals and enjoy a dignified retirement.”