BNY Mellon’s Pershing to Acquire Optimal Asset Management

The Bank of New York Mellon Corporation (BK) announced that one of its companies Pershing has inked a deal to acquire Optimal Asset Management, Inc. to offer customized direct indexing solutions to clients.

Shares of the American investment banking services holding company gained 3.7% on December 2 to close at $56.15.


Pershing is a leading provider of clearing and custody services. Optimal Asset Management, Inc. provides customizable direct indexing solutions to investors seeking personalized portfolios, including options to customize their portfolios for sustainable investments.

The addition of Optimal Asset Management will complement Pershing’s recently launched business unit Pershing X offering. The unit will design and build innovative solutions for advisory, institutional and retail clients within BNY Mellon’s Investment Management business.

Clients will also benefit from tax optimization and personalized portfolios aligned to their values. The acquisition is expected to close by the end of 2021, subject to certain regulatory approvals.

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CEO Comments

CEO of Pershing, Jim Crowley, commented, “As part of our continued efforts to provide clients with innovative offerings, we’re delighted to now be able to offer Optimal Asset Management’s direct indexing capabilities to our advisory clients within Pershing, as well as to our institutional and retail clients within BNY Mellon’s Investment Management business.”

Wall Street’s Take

Overall, the stock has a Moderate Buy consensus rating based on 6 Buys and 3 Holds. The average Bank of New York Mellon price target of $63.44 implies 12.98% upside potential to current levels. Shares have gained 40% over the past year.

Bloggers Weigh In

TipRanks data shows that financial blogger opinions are 100% Bullish on BK, compared to a sector average of 69%.

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