When BNY Mellon launched its separately managed accounts (SMA) business, called Spectrum, in January last year, it was described as a “major breakthrough” by the chief executive of the firm's Asia Pacific SMA business, AJ Harper.
The platform partnered with private banks and nine international asset managers – including BlackRock and Henderson – to offer more than 20 investment strategies to Asian investors with assets of at least $1m (£650,000, €890,000).
However, BNY today confirmed that it had recently decided to withdraw from the business.
“Unfortunately the development of the market has been slower than we anticipated,” said a BNY Mellon spokesman, adding that the decision to withdraw Spectrum from the market had been difficult.
He said the closure of the platform has no impact on BNY Mellon’s other asset management and wealth offerings, or the clients benefitting from those offerings.
“We remain fully committed to the Asia Pacific region as we have been for nearly 100 years,” he added. “We are actively working with our counterparties to manage this matter.”