Reuters - Video

Edition: US | UK | IN | CN | JP

video WealthManagement10

BNY CEO Tries to Maintain Growth

Wednesday, November 03, 2010 - 04:04

CEO of BNY Mellon Wealth Management Lawrence Hughes says wealth managers are eager to buy growth instead of build it.

▲ Hide Transcript

View Transcript

In the Reuters wealth management summit you mentioned the traditional. 6040. Equity bond portfolios a thing of the past. And it that in fact investors might actually lose ground in the next decade if they where we think there's an opportunity. And alternative investments as well beyond traditional stocks and bonds absolutely you know there are opportunities there commodities a diversified portfolio commodities make sense. For a lot of clients about It seems that many wealth managers want to pursue -- of this growth. some of the new financial regulation -- Others come under the same regulatory umbrella that we've been under. Biggest challenge for you this year is what. Biggest challenges. Is probably is slow growth economies that we More fame might not a bad thing for BMY Mellon wealth management which has enjoyed eighteenth consecutive quarters of asset growth. It's up to chief executive Lawrence Hughes to keep that streak alive he joins me today good to see you could see you -- That's formulas industry working in terms of gathering assets revenues did dip in the most recent quarter you have this risk numbers under -- with some investors. Her a boost revenues given the current market climate. Sure we are we're expanding our business of this year we're gonna hire more sales people. We're entering new markets we've entered the Dallas market this year we've recently closed acquisition in Toronto so both through organic expansion and acquisitions as well. In the Reuters wealth management summit you mentioned the traditional. 6040. Equity bond portfolios a thing of the past. And it that in fact investors might actually lose ground in the next decade if they -- strategies. What replaces it what is the news. Strategy. Investors need to move faster to capture opportunities and to mitigate -- and that's exactly what we're doing with our clients -- We're capturing opportunities throughout their good example is the -- 2008. What happened in municipal bonds where they -- 250% of yield of treasuries for example we capture that opportunity for clients and that was terrific today good example of that as high dividend paying stocks is a good space with in the large cap space where we think there's an opportunity. And alternative investments as well beyond traditional stocks and bonds absolutely you know there are opportunities there commodities a diversified portfolio commodities make sense. For a lot of clients about distressed debt stress that mezzanine get things like that are good opportunities today. It seems that many wealth managers want to pursue -- of this growth. Where do you see opportunities right now that -- affordable -- there are more opportunities today and the prices are more reasonable than they were at the peak of the market. So we're seeing more properties available for sale than we -- in 20072000. That and clearly -- the prices are definitely you know better than they were at that time. Certainly should expect some acquisitions next -- I guess it's quite possible we're certainly you know looking at a lot of opportunities you never know if that work we have high standards but we're certainly looking -- a lot of opportunities and it wouldn't surprise me business from -- realized one of them. Some of your larger competitors have been paying really top dollar to try to get some top. Talent we know there's been a bit of a bidding war for talent are you prepared to bid high for people that you want. The trend we've seen is it's the weakest competitors out there really that are. Have to pay the highest prices that are because. They don't have other redeeming qualities that make a talented employees want to go work they're so. They may be paying above market prices we've been a destination for talent for a long term. Our stability our growth our culture have been attractive so I really haven't seen a -- Okay we're fresh off an election issue now and summer saying already potentially have more gridlock in Washington of the divided congress. What happens in terms of how this fracture business. In terms of indirect references to see any potential changes there and will the election change -- you actually manage your business. As a bank we've been one of the most highly regulated. Parts of the financial industry so I think the impact will be greater on some other types of firms within the financial industry. Then on us so we don't see any major change to our business model as a result of the the new financial regulation we didn't see it pretty much as business as usual we think it could be good for consumers in general some of the new financial regulation -- Others come under the same regulatory umbrella that we've been under. Biggest challenge for you this year is what. Biggest challenges. Is probably is slow growth economies that we think the possibility. You know and no increases in taxes could be a good thing. We'd like to see the unemployment rate come down and certainly that would be you know helpful to our firm as well as the overall economy and Lawrence Hughes thanks for your time my pleasure and thanks for having me I'm Rhonda schaffler there this Reuters.

Press CTRL+C (Windows), CMD+C (Mac), or long-press the URL below on your mobile device to copy the code

BNY CEO Tries to Maintain Growth

Wednesday, November 03, 2010 - 04:04