1 00:00:02,960 --> 00:00:10,840 Speaker 1: Bloomberg Audio Studios, podcasts, radio news. You're listening to the 2 00:00:10,880 --> 00:00:15,040 Speaker 1: Bloomberg Intelligence Podcast. Catch us live weekdays at ten am 3 00:00:15,080 --> 00:00:18,759 Speaker 1: Eastern on Applecarplay and Android Auto with the Bloomberg Business App. 4 00:00:18,800 --> 00:00:22,000 Speaker 1: Listen on demand wherever you get your podcasts, or watch 5 00:00:22,079 --> 00:00:24,560 Speaker 1: us live on YouTube. 6 00:00:25,079 --> 00:00:27,600 Speaker 2: Here we are Nashville, Tennessee for bny mel and twenty 7 00:00:27,600 --> 00:00:31,720 Speaker 2: six Annual Insight Conference, two thousand financial intermediaries from top 8 00:00:31,720 --> 00:00:34,120 Speaker 2: asset management firms. We also want to keep you updated 9 00:00:34,120 --> 00:00:36,479 Speaker 2: on the data. John was just talking about the ISM 10 00:00:36,560 --> 00:00:39,960 Speaker 2: services beating estimates. You're looking at business activity and at 11 00:00:40,000 --> 00:00:41,040 Speaker 2: eighteen month high. 12 00:00:41,120 --> 00:00:44,440 Speaker 3: This was This was the ISM and then the services 13 00:00:44,479 --> 00:00:45,880 Speaker 3: part did really well as well. 14 00:00:46,159 --> 00:00:48,680 Speaker 2: Let's get to Anthony Javis, chair of the ISM Services 15 00:00:48,680 --> 00:00:49,720 Speaker 2: Business Committee. 16 00:00:50,120 --> 00:00:53,240 Speaker 3: What drove the increase? We're over expansion again. 17 00:00:53,280 --> 00:00:55,680 Speaker 2: We don't have to freak out about slipping below fifty 18 00:00:55,680 --> 00:00:56,640 Speaker 2: as we did last month. 19 00:00:56,680 --> 00:00:57,319 Speaker 3: What drove it? 20 00:00:59,360 --> 00:01:01,600 Speaker 4: Well, when you look at the report on business release 21 00:01:01,680 --> 00:01:03,840 Speaker 4: this morning and you hit it on the head business 22 00:01:03,880 --> 00:01:07,200 Speaker 4: activity up ten point three percentage points to sixty one 23 00:01:07,280 --> 00:01:10,880 Speaker 4: point two. We had thirteen industries, Thirteen of the eighteen 24 00:01:10,920 --> 00:01:15,920 Speaker 4: industries reflected growth month over month. We're measuring that directional change, 25 00:01:15,959 --> 00:01:19,000 Speaker 4: and we had just under the fifty baseline last month, 26 00:01:19,040 --> 00:01:24,039 Speaker 4: which showed reflected contraction in the report still above in 27 00:01:24,080 --> 00:01:27,880 Speaker 4: the positive areas as it relates to GDP growth, it 28 00:01:27,920 --> 00:01:30,959 Speaker 4: was a little bit like over zero point one percent 29 00:01:31,040 --> 00:01:33,679 Speaker 4: point there. But when you look at this, what's really 30 00:01:34,080 --> 00:01:37,240 Speaker 4: driving this is again two of the industries in the 31 00:01:37,280 --> 00:01:39,800 Speaker 4: top four real estate rental and leasing, health care and 32 00:01:39,840 --> 00:01:44,240 Speaker 4: social assistance had increases month over month. And the picture 33 00:01:44,240 --> 00:01:47,080 Speaker 4: would even be stronger if the employment was better. At 34 00:01:47,120 --> 00:01:50,360 Speaker 4: forty seven point one, that's one of the four indexes 35 00:01:50,400 --> 00:01:53,120 Speaker 4: that make up the composite, and that's kind of dragging 36 00:01:53,120 --> 00:01:57,720 Speaker 4: a bit still as employers are still remaining cautious about hiring. 37 00:02:00,480 --> 00:02:02,560 Speaker 5: So, Anthony, I noticed, you know, not being an expert 38 00:02:02,560 --> 00:02:05,120 Speaker 5: in this some month to month volatility here, what's the 39 00:02:05,120 --> 00:02:07,080 Speaker 5: best way to look at this ism data is on 40 00:02:07,120 --> 00:02:10,160 Speaker 5: like a rolling six month kind of basis. And if so, 41 00:02:10,480 --> 00:02:13,120 Speaker 5: what's that telling you? 42 00:02:13,120 --> 00:02:15,080 Speaker 4: You know, it's a great question. We look at the 43 00:02:15,240 --> 00:02:17,600 Speaker 4: data and we always want to see how it trends out. 44 00:02:17,639 --> 00:02:20,080 Speaker 4: We don't, you know, look at it as just one month. 45 00:02:20,639 --> 00:02:22,880 Speaker 4: And to your point, I like to look at trends 46 00:02:23,040 --> 00:02:25,840 Speaker 4: is three to four months, and this is pretty much 47 00:02:25,840 --> 00:02:27,720 Speaker 4: in line with what we had on our semi annual 48 00:02:27,760 --> 00:02:32,320 Speaker 4: forecast going back to December and most recently, our respondents 49 00:02:32,320 --> 00:02:35,160 Speaker 4: indicated the second half would be better than the first half. 50 00:02:35,560 --> 00:02:38,280 Speaker 4: And what we're seeing is this directional change again, and 51 00:02:38,320 --> 00:02:40,400 Speaker 4: so we're seeing the increases month over a month, and 52 00:02:41,080 --> 00:02:45,160 Speaker 4: so far the services sector has been fairly resilient and 53 00:02:45,240 --> 00:02:48,400 Speaker 4: would be even better. Our respondents are very much still 54 00:02:48,480 --> 00:02:51,720 Speaker 4: concerned about inflation and interest rates. 55 00:02:54,040 --> 00:02:56,240 Speaker 2: Before I let you go, Anthony, one big thing, what 56 00:02:56,440 --> 00:02:57,639 Speaker 2: are the worry spots? 57 00:02:57,760 --> 00:02:59,160 Speaker 3: Can you just talk us through that a little bit. 58 00:03:01,120 --> 00:03:05,560 Speaker 4: Well, definitely, we're seeing the geopolitical concerns that have been ongoing, 59 00:03:06,240 --> 00:03:10,399 Speaker 4: and as I just mentioned, inflation and interest rates, interest rates, 60 00:03:10,440 --> 00:03:14,560 Speaker 4: there's numerous comments from our respondents in the report indicating 61 00:03:14,639 --> 00:03:19,360 Speaker 4: that capital reinvestment is affected the cost of money. So 62 00:03:19,440 --> 00:03:21,720 Speaker 4: those are the two areas that are highlighted as the 63 00:03:21,760 --> 00:03:24,240 Speaker 4: most concern for our respondents. 64 00:03:26,320 --> 00:03:28,160 Speaker 5: All right, Anthony, thank you so much. We appreciate it. 65 00:03:28,200 --> 00:03:32,160 Speaker 5: Anthony Yavi's chair of the Ism Services Business Committee, talking 66 00:03:32,200 --> 00:03:34,280 Speaker 5: about that data compucity better than expected. 67 00:03:35,840 --> 00:03:39,720 Speaker 1: You're listening to the Bloomberg Intelligence podcast. Catch us live 68 00:03:39,800 --> 00:03:43,320 Speaker 1: weekdays at ten am Eastern on applecar Play and Android 69 00:03:43,360 --> 00:03:46,120 Speaker 1: Auto with the Bloomberg Business app. You can also listen 70 00:03:46,240 --> 00:03:49,320 Speaker 1: live on Amazon Alexa from our flagship New York station, 71 00:03:49,720 --> 00:03:52,480 Speaker 1: Just say Alexa Play Bloomberg eleven thirty. 72 00:03:54,200 --> 00:03:56,560 Speaker 2: We also want to keep you updated on breaking news 73 00:03:56,560 --> 00:03:59,480 Speaker 2: out of India. Indian Prime Minister are in the Modi 74 00:03:59,600 --> 00:04:02,840 Speaker 2: ones crucial backing from two key allies in his coalition 75 00:04:03,280 --> 00:04:05,800 Speaker 2: and that allowed him to form a government and extend his. 76 00:04:05,920 --> 00:04:07,480 Speaker 3: Decade in power. 77 00:04:07,600 --> 00:04:11,520 Speaker 2: His party was forced to join with the National Democratic 78 00:04:11,640 --> 00:04:16,240 Speaker 2: Alliance as well as the Teugu Dessam Party. So we 79 00:04:16,279 --> 00:04:18,479 Speaker 2: want to get you an information on what all of 80 00:04:18,520 --> 00:04:21,960 Speaker 2: that means and how it sets India's growth up going forward. 81 00:04:22,040 --> 00:04:26,920 Speaker 2: And the current is a global economy reporter at Bloomberg. 82 00:04:27,560 --> 00:04:30,360 Speaker 2: He's covered all of this stuff for a very long time. 83 00:04:30,880 --> 00:04:33,800 Speaker 2: And what did you make of this coalition? What does 84 00:04:33,839 --> 00:04:36,719 Speaker 2: it mean? How our investor is going to take it? 85 00:04:37,720 --> 00:04:40,680 Speaker 6: Well, what we know is that a deal has now 86 00:04:40,760 --> 00:04:44,080 Speaker 6: been agreed to set up a government and it gets 87 00:04:44,360 --> 00:04:47,480 Speaker 6: Prime Minister Remodi back into office sort of done a 88 00:04:47,560 --> 00:04:51,680 Speaker 6: quick negotiation. It puts an energy uncertainty on that side 89 00:04:51,720 --> 00:04:55,680 Speaker 6: of things, but that's probably about all we know so far. 90 00:04:56,400 --> 00:04:59,679 Speaker 6: We don't quite know what's behind the deal yet. Obviously 91 00:04:59,720 --> 00:05:02,680 Speaker 6: this is coalition, which means there has to be concessions 92 00:05:02,760 --> 00:05:06,200 Speaker 6: and trade offs. It's not clear how that will play 93 00:05:06,200 --> 00:05:11,440 Speaker 6: out in terms of cabinet postings, policy priorities, and what 94 00:05:11,440 --> 00:05:16,560 Speaker 6: it means of course for economic growth going forward for India. Remember, 95 00:05:16,560 --> 00:05:19,599 Speaker 6: in the past, India's had coalition governments. One of the 96 00:05:19,600 --> 00:05:22,240 Speaker 6: great pitches of the Modi government was and it was 97 00:05:22,240 --> 00:05:26,880 Speaker 6: a strong, stable government able to push through change and reform. Well, 98 00:05:27,120 --> 00:05:30,520 Speaker 6: I've seen some economist notes this morning questioning where that 99 00:05:30,560 --> 00:05:33,480 Speaker 6: will go from here. It's obviously a Modi government, but 100 00:05:33,600 --> 00:05:38,159 Speaker 6: the weekend Modi government so uncertainly on the domestic front. 101 00:05:38,520 --> 00:05:40,720 Speaker 6: And then of course we don't know what it would 102 00:05:40,720 --> 00:05:44,360 Speaker 6: mean for India on the world stage yet either. India 103 00:05:44,360 --> 00:05:46,640 Speaker 6: has been the darling of the global economy, one of 104 00:05:46,640 --> 00:05:50,080 Speaker 6: the fastest growing, emerging as kind of an alternative to 105 00:05:50,200 --> 00:05:54,040 Speaker 6: China in the middle of the geopolitical arguing with the 106 00:05:54,200 --> 00:05:58,240 Speaker 6: US playing a security role in the US led Quad 107 00:05:58,279 --> 00:06:01,960 Speaker 6: for example, et cetera very confident place in the world 108 00:06:02,000 --> 00:06:05,880 Speaker 6: stage for a prominent's remote in India. Will that direction 109 00:06:06,000 --> 00:06:08,920 Speaker 6: now change, Will they carry on us as they wore 110 00:06:09,400 --> 00:06:11,800 Speaker 6: I think, so, I think a lot of question marks 111 00:06:11,839 --> 00:06:14,680 Speaker 6: on certainly over where this government goes over the months 112 00:06:14,680 --> 00:06:16,279 Speaker 6: and years ahead. 113 00:06:17,839 --> 00:06:19,680 Speaker 5: So and then with with you know, twenty four to 114 00:06:19,760 --> 00:06:23,640 Speaker 5: forty eight hours here of hindsight, is there a decent 115 00:06:23,720 --> 00:06:28,240 Speaker 5: narrative emerging about why mister Mody lost so much support 116 00:06:28,600 --> 00:06:30,080 Speaker 5: that we find ourselves at this point where we have 117 00:06:30,200 --> 00:06:32,839 Speaker 5: to form a coalition government like what happened. 118 00:06:34,520 --> 00:06:37,120 Speaker 6: I think it'll probably take a little while for that 119 00:06:37,160 --> 00:06:39,880 Speaker 6: to become fully clear. Just you know, from what our 120 00:06:39,920 --> 00:06:43,760 Speaker 6: own colleagues New Delhi are saying, it sounds as though 121 00:06:44,279 --> 00:06:48,640 Speaker 6: economic matters were certainly at least part of it, inflation 122 00:06:48,800 --> 00:06:52,920 Speaker 6: and living costs, and this feeling that on the one hand, 123 00:06:53,120 --> 00:06:55,960 Speaker 6: as I mentioned earlier, India had become this kind of 124 00:06:56,080 --> 00:07:00,719 Speaker 6: global growth star, stand out on the world stage, a 125 00:07:00,760 --> 00:07:06,520 Speaker 6: new confident kind of outlook, maybe capitalizing on the challenges 126 00:07:06,640 --> 00:07:10,880 Speaker 6: China was facing. But underground, listening to our colleagues there, 127 00:07:11,000 --> 00:07:14,600 Speaker 6: they're making the point that maybe that growth story wasn't 128 00:07:14,600 --> 00:07:17,400 Speaker 6: trickling down, or perhaps people on the ground weren't necessarily 129 00:07:17,400 --> 00:07:22,520 Speaker 6: feeling was trickling down. So clearly some degree of this affection, 130 00:07:23,520 --> 00:07:25,720 Speaker 6: but it will take time for that to become clear. 131 00:07:26,000 --> 00:07:29,400 Speaker 6: What is clear is that India had been benefiting from 132 00:07:29,440 --> 00:07:32,400 Speaker 6: some of the shifts happening right now. FDI had been increasing, 133 00:07:32,480 --> 00:07:36,880 Speaker 6: their markets were certainly on a chair. Companies and investors 134 00:07:36,880 --> 00:07:39,720 Speaker 6: were looking at India or maybe wishing to look at 135 00:07:39,760 --> 00:07:43,360 Speaker 6: India in a different light than they had been. But 136 00:07:43,400 --> 00:07:46,320 Speaker 6: of course there are limitations so that it's still no China. 137 00:07:46,320 --> 00:07:49,320 Speaker 6: It's it doesn't have anything like the scale infrastructure that 138 00:07:49,440 --> 00:07:51,800 Speaker 6: China offers. So the economy has a long way to 139 00:07:51,840 --> 00:07:55,160 Speaker 6: go in terms of development, and clearly people underground maybe 140 00:07:55,200 --> 00:07:56,160 Speaker 6: reflecting that point. 141 00:07:58,720 --> 00:07:59,800 Speaker 3: And now this was me yesterday. 142 00:07:59,840 --> 00:08:02,560 Speaker 2: I was sitting by the pool here in Nashville, Tennessee 143 00:08:02,800 --> 00:08:04,880 Speaker 2: with Damien Sassar on the phone being like, I don't 144 00:08:04,880 --> 00:08:05,200 Speaker 2: get it. 145 00:08:05,240 --> 00:08:07,440 Speaker 3: Break down India, South Africa and Mexico for me. 146 00:08:07,720 --> 00:08:09,800 Speaker 2: The stuff you said about India was quite interesting in 147 00:08:09,840 --> 00:08:13,240 Speaker 2: that now that we have a coalition, Mody is going 148 00:08:13,320 --> 00:08:15,800 Speaker 2: to have to do something to get those. 149 00:08:15,920 --> 00:08:17,920 Speaker 3: People that are very disaffected by the. 150 00:08:17,840 --> 00:08:21,040 Speaker 2: Government and sort of left behind, because all you're talking 151 00:08:21,040 --> 00:08:23,200 Speaker 2: about is on capital investment in the stock market, but 152 00:08:23,200 --> 00:08:26,040 Speaker 2: the people left behind, and that means larger budget deficits, 153 00:08:26,160 --> 00:08:28,840 Speaker 2: bigger fiscal deficits, more borrowing. 154 00:08:29,480 --> 00:08:31,840 Speaker 3: Do you see that in the market. Do you think 155 00:08:31,920 --> 00:08:32,840 Speaker 3: that that's on the table. 156 00:08:34,280 --> 00:08:37,240 Speaker 6: Well, that's the corollary. Our colleagues in New Delhi made 157 00:08:37,280 --> 00:08:40,160 Speaker 6: point that the coalition partners he's signed up with are 158 00:08:40,280 --> 00:08:45,600 Speaker 6: especially unreliable. So that would suggest that obviously any incumbent 159 00:08:45,600 --> 00:08:47,520 Speaker 6: would want to try and do what they can to 160 00:08:47,559 --> 00:08:50,360 Speaker 6: keep them onside. And if you're trying to keep them onside, 161 00:08:50,400 --> 00:08:54,199 Speaker 6: that lends us healthy idea of everyone has their pet projects, 162 00:08:54,440 --> 00:08:57,640 Speaker 6: everyone will want to investment in spending in their home state. 163 00:08:57,880 --> 00:09:01,120 Speaker 6: And of course that suggests it would be more pressure 164 00:09:01,160 --> 00:09:05,719 Speaker 6: on the on the public finances, being on welfare, being 165 00:09:05,800 --> 00:09:08,559 Speaker 6: investment in infrastructure or whatever. But we have to wait 166 00:09:08,600 --> 00:09:11,240 Speaker 6: and see what particular policy does come out of it. 167 00:09:11,280 --> 00:09:14,120 Speaker 6: But at the very least, not just India, but any 168 00:09:14,160 --> 00:09:17,000 Speaker 6: country where you have a coalition government, that means there 169 00:09:17,000 --> 00:09:18,839 Speaker 6: has to be trade offs, That means there has to 170 00:09:18,880 --> 00:09:22,120 Speaker 6: be compromised. That means everyone has a wish list, and 171 00:09:22,160 --> 00:09:23,800 Speaker 6: when you have a wish list government to try and 172 00:09:23,880 --> 00:09:27,600 Speaker 6: keep things together in that typically does mean more pressure 173 00:09:27,600 --> 00:09:30,120 Speaker 6: and spending. We'll just have to see how that plays out. 174 00:09:30,320 --> 00:09:32,359 Speaker 6: In the months ahead. 175 00:09:33,600 --> 00:09:35,480 Speaker 3: All right, and so good to chat with you. 176 00:09:35,559 --> 00:09:38,200 Speaker 2: Thank you so much for joining us and the current 177 00:09:38,280 --> 00:09:43,720 Speaker 2: He is Bloomberg Global Economy reporter joining us from DC 178 00:09:44,200 --> 00:09:45,520 Speaker 2: So I think that's quite interesting. 179 00:09:45,600 --> 00:09:46,959 Speaker 3: We'll see, we'll see how much money is. 180 00:09:47,600 --> 00:09:49,600 Speaker 5: But again we've all heard this pitch. I think over 181 00:09:49,640 --> 00:09:52,360 Speaker 5: the last several years, as China has had its challenges, 182 00:09:52,360 --> 00:09:54,679 Speaker 5: whether it's government cracking down on business or their economy 183 00:09:54,720 --> 00:09:57,120 Speaker 5: slowing their you know, folks will come up to me 184 00:09:57,160 --> 00:10:00,640 Speaker 5: and say, what you guys thought about China for the 185 00:10:00,720 --> 00:10:03,880 Speaker 5: last ten twenty years, Take them and put it onto India. 186 00:10:03,920 --> 00:10:06,520 Speaker 5: That's where the opportunity is and you have better rule 187 00:10:06,559 --> 00:10:11,439 Speaker 5: of law, better you know, expectations of business, and that 188 00:10:11,480 --> 00:10:13,040 Speaker 5: can be a real opportunity for the next ten to 189 00:10:13,040 --> 00:10:15,040 Speaker 5: twenty years. We'll have to see how this change in 190 00:10:15,080 --> 00:10:16,000 Speaker 5: government maybe impacts that. 191 00:10:17,559 --> 00:10:21,439 Speaker 1: You're listening to the Bloomberg Intelligence podcast. Catch us live 192 00:10:21,520 --> 00:10:24,600 Speaker 1: weekdays at ten am Eastern on Applecarplay and then Broud 193 00:10:24,600 --> 00:10:27,720 Speaker 1: Auto with the Bloomberg Business app. Listen on demand wherever 194 00:10:27,760 --> 00:10:31,600 Speaker 1: you get your podcasts, or watch us live on YouTube. 195 00:10:32,800 --> 00:10:36,439 Speaker 2: Cara Malex Steel alongside Paul Sweeney. This is Bloomberg Intelligence Radio. 196 00:10:36,720 --> 00:10:39,280 Speaker 2: We bring you all the top news with our analyst 197 00:10:39,320 --> 00:10:41,880 Speaker 2: Lens from Bloomberg Intelligence. They cover two thousand companies and 198 00:10:41,880 --> 00:10:44,520 Speaker 2: one hundred and thirty industries worldwide, and occasionally they let 199 00:10:44,600 --> 00:10:46,880 Speaker 2: us go on the road and do stuff. So today 200 00:10:46,920 --> 00:10:51,200 Speaker 2: we are broadcasting live from that magnificent Gaylord Opu Land 201 00:10:51,240 --> 00:10:55,120 Speaker 2: Resort in Nashville for BNY Melon's twenty six annual Inside Conference. 202 00:10:55,120 --> 00:10:58,520 Speaker 2: They have over two thousand financial intermediaries from top asset 203 00:10:58,640 --> 00:11:01,480 Speaker 2: management firms. And I'm grateful that someone is here now 204 00:11:01,520 --> 00:11:04,760 Speaker 2: from Pershing who's going to give us some insight into technology. 205 00:11:05,520 --> 00:11:07,240 Speaker 3: Joining us now is Avesley Simmons. 206 00:11:07,280 --> 00:11:10,120 Speaker 2: She's president of Pushing X, head of strategy for B 207 00:11:10,160 --> 00:11:13,000 Speaker 2: and Y Melons Pershing, and head of product management for 208 00:11:13,080 --> 00:11:13,920 Speaker 2: BNY Melons. 209 00:11:14,040 --> 00:11:15,120 Speaker 3: You do a lot of stuff. 210 00:11:15,280 --> 00:11:18,200 Speaker 7: Yeah, that's a lot of titles there you go. 211 00:11:18,400 --> 00:11:20,120 Speaker 3: So first off, what is Pushing X. 212 00:11:20,280 --> 00:11:22,880 Speaker 8: Yeah, Pushing X is a fintech inside of the Bank 213 00:11:22,920 --> 00:11:24,640 Speaker 8: of New York Mellon that was started about two and 214 00:11:24,640 --> 00:11:26,760 Speaker 8: a half years ago. So I was the first employee. 215 00:11:26,800 --> 00:11:29,719 Speaker 8: My background's in FinTechs and I came to be and 216 00:11:29,720 --> 00:11:33,880 Speaker 8: why to really drive innovation inside this story two hundred 217 00:11:33,880 --> 00:11:36,920 Speaker 8: and forty year old institution, so we're never resting on 218 00:11:36,960 --> 00:11:37,600 Speaker 8: our laurels. 219 00:11:37,600 --> 00:11:38,800 Speaker 7: We're always moving. 220 00:11:38,520 --> 00:11:41,160 Speaker 8: Forward, and doing it with a fintech inside of the 221 00:11:41,160 --> 00:11:43,200 Speaker 8: bank has been a super efficient way to go. 222 00:11:43,880 --> 00:11:46,640 Speaker 5: So what are some of the initial products that you 223 00:11:46,640 --> 00:11:48,240 Speaker 5: guys have been bringing to market for your clients. 224 00:11:48,400 --> 00:11:50,760 Speaker 8: Yeah, so last year we launched our first product, which 225 00:11:50,800 --> 00:11:53,600 Speaker 8: is called Wove Advisory, and that really. 226 00:11:53,360 --> 00:11:55,840 Speaker 5: Is WOV Wove Wove. 227 00:11:55,920 --> 00:11:56,160 Speaker 7: Yeah. 228 00:11:56,360 --> 00:11:58,520 Speaker 8: The reason we call it Wove is it brings together 229 00:11:58,679 --> 00:12:01,800 Speaker 8: a lot of disconnected technolog and really that's kind of 230 00:12:01,840 --> 00:12:05,360 Speaker 8: an advisor workstation if you think about it. Let's advisors 231 00:12:05,400 --> 00:12:08,800 Speaker 8: sort of build portfolios, trade them, report on them everything 232 00:12:08,840 --> 00:12:13,320 Speaker 8: they need to service a client. This year we launched 233 00:12:13,400 --> 00:12:18,160 Speaker 8: three more products, so we've been busy. We launched Wove Data, 234 00:12:18,480 --> 00:12:22,520 Speaker 8: which is a cloud based data aggregation service so that 235 00:12:22,559 --> 00:12:25,040 Speaker 8: advisors can have access to all the data they need 236 00:12:25,120 --> 00:12:28,280 Speaker 8: to service their clients across any custodian and any firm. 237 00:12:28,720 --> 00:12:31,840 Speaker 8: We launched Wove Connect, which is a suite of APIs. 238 00:12:31,920 --> 00:12:34,720 Speaker 8: Lots of people need to build through APIs and so 239 00:12:34,800 --> 00:12:37,760 Speaker 8: we've offered that. And then the third product is probably 240 00:12:38,080 --> 00:12:40,360 Speaker 8: the one I think people are most excited about, which 241 00:12:40,440 --> 00:12:43,640 Speaker 8: is wove Investor, which is an investor portal that can 242 00:12:43,679 --> 00:12:47,880 Speaker 8: be configured to any firms branding so that they can 243 00:12:47,960 --> 00:12:50,280 Speaker 8: have their investors log into a really simple. 244 00:12:50,080 --> 00:12:54,960 Speaker 7: And easy to use experience. Wow, that's fintech man, right there, 245 00:12:55,720 --> 00:12:56,080 Speaker 7: you do? 246 00:12:56,200 --> 00:12:58,080 Speaker 5: I think? Well, I think what happened during the pandemic? 247 00:12:58,679 --> 00:13:01,840 Speaker 5: You're you weren't going into yourinancial advisor, you weren't going 248 00:13:01,880 --> 00:13:05,600 Speaker 5: into your commercial right local brand. So people were forced 249 00:13:05,760 --> 00:13:08,480 Speaker 5: to get yeah, tech savvy, and I think probably from 250 00:13:08,520 --> 00:13:11,240 Speaker 5: the provider perspective, you guys were probably forced by the 251 00:13:11,280 --> 00:13:15,800 Speaker 5: marketplace to make up more investments. So what are you 252 00:13:15,840 --> 00:13:18,439 Speaker 5: hearing from your advisors? What do they what do they 253 00:13:18,480 --> 00:13:20,319 Speaker 5: really need? Do they want to empower their clients? So 254 00:13:20,360 --> 00:13:21,960 Speaker 5: they just want to be smarter when they're talking to 255 00:13:22,000 --> 00:13:22,360 Speaker 5: the clients. 256 00:13:22,400 --> 00:13:24,440 Speaker 8: Well all of the above, right, Like, so they really 257 00:13:24,480 --> 00:13:27,359 Speaker 8: want their clients to have a very easy to use experience. 258 00:13:27,480 --> 00:13:30,679 Speaker 8: And today, just given the way the industry has grown up, 259 00:13:31,320 --> 00:13:33,880 Speaker 8: they are usually having to ask their and investor to 260 00:13:33,920 --> 00:13:37,040 Speaker 8: log into multiple accounts, one for financial planning, one for 261 00:13:37,120 --> 00:13:38,840 Speaker 8: performance reporting, one for trading. 262 00:13:39,040 --> 00:13:39,800 Speaker 7: Nobody wants that. 263 00:13:39,800 --> 00:13:43,200 Speaker 8: Anymore, So you remember that now, I can't remember that 264 00:13:43,320 --> 00:13:46,080 Speaker 8: many passwords. So Wove Investor brings all that together, and 265 00:13:46,120 --> 00:13:48,679 Speaker 8: that's why I think people are super excited about that product. 266 00:13:48,960 --> 00:13:49,880 Speaker 7: But you can't pull. 267 00:13:49,760 --> 00:13:52,200 Speaker 8: Together a really great investor experience unless you have all 268 00:13:52,280 --> 00:13:55,080 Speaker 8: the data pulled together. So Wolf Data is also a 269 00:13:55,080 --> 00:13:58,800 Speaker 8: really important product. So Wolf Connect, Wove Advisory, Wove Data, 270 00:13:58,920 --> 00:14:01,320 Speaker 8: Wolve Investor, they all create a suite. And the way 271 00:14:01,320 --> 00:14:03,559 Speaker 8: to think about it is kind of like the Microsoft suite. 272 00:14:03,679 --> 00:14:05,600 Speaker 8: You know, you got your outlook, you got your teams, 273 00:14:05,640 --> 00:14:06,680 Speaker 8: and they all work together. 274 00:14:07,040 --> 00:14:08,360 Speaker 7: That's what we're doing here in wealth. 275 00:14:08,400 --> 00:14:12,080 Speaker 2: So when I log onto my wealth management MIENT site, yeah, 276 00:14:12,240 --> 00:14:14,840 Speaker 2: and I can see my investments and my bank accounts 277 00:14:14,840 --> 00:14:16,840 Speaker 2: and my savings and my furrow one K and then 278 00:14:16,840 --> 00:14:18,080 Speaker 2: I see like what the planning is. 279 00:14:18,120 --> 00:14:19,440 Speaker 7: That's all that. 280 00:14:19,560 --> 00:14:23,360 Speaker 8: Stuff stuff, and we're putting it all together for any firm, right. 281 00:14:23,480 --> 00:14:26,520 Speaker 8: So a lot of large firms have made those investments 282 00:14:26,560 --> 00:14:30,120 Speaker 8: if you're working with you know, like a large wirehouse 283 00:14:30,440 --> 00:14:35,040 Speaker 8: or something like that. But these are independent, mostly independent 284 00:14:35,440 --> 00:14:37,440 Speaker 8: wealth advisors, and they don't have that kind of capital 285 00:14:37,520 --> 00:14:40,280 Speaker 8: right to build something that end to end, So we're 286 00:14:40,280 --> 00:14:42,920 Speaker 8: doing it for them and they can own it fractionally 287 00:14:43,600 --> 00:14:46,000 Speaker 8: and not have to make that massive investment that the 288 00:14:46,040 --> 00:14:48,200 Speaker 8: Bank of New York Mellon is making on their behalf. 289 00:14:47,960 --> 00:14:50,680 Speaker 5: What's the business case for the investments that you get? 290 00:14:50,720 --> 00:14:53,040 Speaker 5: So when you go to your CFO and Astra Capital 291 00:14:53,160 --> 00:14:55,720 Speaker 5: to make some of these investments, what's the business case 292 00:14:55,760 --> 00:14:56,640 Speaker 5: you make to your CFO. 293 00:14:56,800 --> 00:15:00,360 Speaker 8: Yeah, so it's pretty easy to make the case for 294 00:15:00,400 --> 00:15:04,760 Speaker 8: this platform because this helps our Persian custody business, it 295 00:15:04,920 --> 00:15:09,520 Speaker 8: helps our investment management business, it helps our wealth management business, 296 00:15:09,640 --> 00:15:12,280 Speaker 8: and it helps our asset manage our clients. So because 297 00:15:12,360 --> 00:15:15,200 Speaker 8: Bank of New York Mellon runs across all of those 298 00:15:15,240 --> 00:15:17,880 Speaker 8: different business lines. 299 00:15:18,080 --> 00:15:19,160 Speaker 7: This pulls it all together. 300 00:15:19,280 --> 00:15:23,000 Speaker 8: So it's i'm the best dollar to spend because it's 301 00:15:23,040 --> 00:15:26,600 Speaker 8: really lifting all these different business lines across B and Y. 302 00:15:26,800 --> 00:15:29,080 Speaker 8: And that really was the reason that we've made the 303 00:15:29,120 --> 00:15:30,360 Speaker 8: investment in this platform. 304 00:15:30,400 --> 00:15:31,960 Speaker 3: So what else then do you work on? And this 305 00:15:32,000 --> 00:15:32,480 Speaker 3: sounds great? 306 00:15:32,520 --> 00:15:34,880 Speaker 7: Yeah, yeah, done and done? No, never done. 307 00:15:35,040 --> 00:15:38,680 Speaker 8: So we'll be driving forward with a lot more and 308 00:15:38,720 --> 00:15:40,480 Speaker 8: I'll be back here on the stage next year with 309 00:15:40,520 --> 00:15:41,760 Speaker 8: more releases on WOVE. 310 00:15:42,160 --> 00:15:44,840 Speaker 7: But we've also been working on strategy. 311 00:15:45,000 --> 00:15:47,800 Speaker 8: So I took over the head of Persian strategy back 312 00:15:47,800 --> 00:15:50,720 Speaker 8: in November, and what was really exciting is here we 313 00:15:50,720 --> 00:15:52,720 Speaker 8: were able to release our new mission and our new 314 00:15:52,800 --> 00:15:54,600 Speaker 8: vision and let me just quickly run through it. Our 315 00:15:54,640 --> 00:15:58,560 Speaker 8: new mission is to help advisors help more people. So 316 00:15:58,600 --> 00:16:02,200 Speaker 8: we believe that there's not enough advisors in the in 317 00:16:02,320 --> 00:16:05,000 Speaker 8: the United States to serve all the clients that need service. 318 00:16:05,560 --> 00:16:09,000 Speaker 8: So there's not many more people, you know, coming into 319 00:16:09,040 --> 00:16:10,680 Speaker 8: the industry. So our job is to make the ones 320 00:16:10,720 --> 00:16:12,640 Speaker 8: that are here more productive so that it can just 321 00:16:12,680 --> 00:16:13,280 Speaker 8: help more people. 322 00:16:13,280 --> 00:16:14,160 Speaker 7: So it's pretty simple. 323 00:16:14,640 --> 00:16:16,320 Speaker 8: And then our new vision is to create the most 324 00:16:16,320 --> 00:16:19,280 Speaker 8: connected and productive platform for the future of wealth. We 325 00:16:19,360 --> 00:16:22,160 Speaker 8: really see a world now where everything has to be connected, 326 00:16:22,520 --> 00:16:23,760 Speaker 8: and that's the mission we're on. 327 00:16:23,880 --> 00:16:26,240 Speaker 5: So why aren't more young people coming into the business 328 00:16:26,240 --> 00:16:28,640 Speaker 5: Because all I read about is the big macro story 329 00:16:28,680 --> 00:16:30,800 Speaker 5: of all this wealth from the boomers has to be 330 00:16:30,840 --> 00:16:33,280 Speaker 5: transferred and has to be managing. It seems like a 331 00:16:33,480 --> 00:16:35,080 Speaker 5: twenty thirty year runway. 332 00:16:35,160 --> 00:16:35,520 Speaker 7: It is. 333 00:16:35,600 --> 00:16:38,280 Speaker 5: So my number three offspring is going into that part 334 00:16:38,320 --> 00:16:39,080 Speaker 5: of their business scheme. 335 00:16:39,200 --> 00:16:39,360 Speaker 9: Yeah. 336 00:16:39,880 --> 00:16:41,880 Speaker 5: Why, I've heard from a lot of your colleagues that 337 00:16:41,880 --> 00:16:43,160 Speaker 5: that's a challenge, right, Yeah, it. 338 00:16:43,160 --> 00:16:45,520 Speaker 7: Is a challenge. I think there's some structural challenges. 339 00:16:45,600 --> 00:16:47,640 Speaker 8: A lot of part of this business is still very 340 00:16:48,200 --> 00:16:52,000 Speaker 8: you know, kind of commission based, and young people want 341 00:16:52,440 --> 00:16:55,800 Speaker 8: potentially a different kind of onboarding model. But I also 342 00:16:55,880 --> 00:16:57,600 Speaker 8: just think we have a bit of a pr problem. 343 00:16:57,720 --> 00:17:00,600 Speaker 8: You know, people don't realize how mission driven a financial 344 00:17:00,600 --> 00:17:03,560 Speaker 8: advisor is. You know, you really are helping families create 345 00:17:04,240 --> 00:17:07,440 Speaker 8: a different future, and I think if we can sort 346 00:17:07,440 --> 00:17:09,080 Speaker 8: of change the narrative a little bit, I mean, I 347 00:17:09,160 --> 00:17:11,160 Speaker 8: hate to use that term, but it is a really 348 00:17:11,200 --> 00:17:14,800 Speaker 8: noble ambition, and I think a lot of kids don't 349 00:17:14,840 --> 00:17:16,440 Speaker 8: see it that way. They sort of see it as 350 00:17:16,560 --> 00:17:19,040 Speaker 8: like yuckie Wall Street, but it's not that at all. 351 00:17:19,160 --> 00:17:24,879 Speaker 8: Financial advice is really a community based, heartfelt type of occupation, 352 00:17:25,240 --> 00:17:26,120 Speaker 8: especially if. 353 00:17:26,040 --> 00:17:29,600 Speaker 2: You're able to touch families and lives that aren't multi billion. 354 00:17:29,800 --> 00:17:33,240 Speaker 8: Yeah, that's the whole thing, right, Like everybody's like, okay, cool. 355 00:17:33,920 --> 00:17:36,840 Speaker 8: But the reason our help advisors help more people. Ambition 356 00:17:37,000 --> 00:17:39,560 Speaker 8: is so strong is, you know, the more we can 357 00:17:39,560 --> 00:17:42,880 Speaker 8: help advisors be more productive, the more sort of lower 358 00:17:43,000 --> 00:17:46,400 Speaker 8: down the economic chain they can go, and we can 359 00:17:46,440 --> 00:17:47,639 Speaker 8: really truly change lives. 360 00:17:47,640 --> 00:17:50,000 Speaker 7: So I'm super passionate. 361 00:17:49,480 --> 00:17:52,080 Speaker 8: About it, and I think that you know, we're just 362 00:17:52,119 --> 00:17:55,080 Speaker 8: going to keep working until we can get millions more internally. 363 00:17:55,960 --> 00:17:59,439 Speaker 2: You know, change for such a large institution that's been 364 00:17:59,480 --> 00:18:03,439 Speaker 2: around for hundreds of years, especially in the technology sense, 365 00:18:03,600 --> 00:18:04,600 Speaker 2: can be really hard. 366 00:18:04,760 --> 00:18:06,960 Speaker 3: Yeah, what kind of mandate do you feel like you 367 00:18:07,000 --> 00:18:07,720 Speaker 3: were able. 368 00:18:07,480 --> 00:18:08,520 Speaker 7: To have an execute? 369 00:18:08,520 --> 00:18:08,600 Speaker 5: Like? 370 00:18:08,680 --> 00:18:11,040 Speaker 7: Yeah, I'm how on bored? Is everybody with all the change? 371 00:18:11,160 --> 00:18:13,919 Speaker 8: I feel so so privileged because this has been a 372 00:18:14,440 --> 00:18:18,080 Speaker 8: you know, kind of top of the house embraced initiative, 373 00:18:18,240 --> 00:18:21,000 Speaker 8: right so, our our CEO, Robin Vince, this is one 374 00:18:21,040 --> 00:18:25,800 Speaker 8: of his key initiatives, our CFO, our whole executive's office, 375 00:18:26,119 --> 00:18:29,359 Speaker 8: and people are so supportive. And what they love about 376 00:18:29,359 --> 00:18:32,800 Speaker 8: this kind of fintech model that we've put together is 377 00:18:33,320 --> 00:18:36,000 Speaker 8: we're actually now going to start to adopt this whole 378 00:18:36,080 --> 00:18:38,800 Speaker 8: model firm wide. And I think it's going to make 379 00:18:38,960 --> 00:18:42,200 Speaker 8: the future of Bank of pre Yorick Mellon as as 380 00:18:42,240 --> 00:18:43,480 Speaker 8: bright as its past has been. 381 00:18:44,320 --> 00:18:49,680 Speaker 5: And Bank of New York the best address global financial services? Okay, 382 00:18:49,920 --> 00:18:50,919 Speaker 5: number one Wall Street? 383 00:18:51,359 --> 00:18:51,639 Speaker 3: Yeah? 384 00:18:51,920 --> 00:18:52,840 Speaker 5: How cool is that? 385 00:18:52,880 --> 00:18:55,960 Speaker 3: I mean that's a good is that good? Pr rom 386 00:18:56,440 --> 00:18:57,359 Speaker 3: in right now? 387 00:18:57,080 --> 00:18:59,480 Speaker 8: I always think it's pretty cool when I think about 388 00:18:59,480 --> 00:19:03,440 Speaker 8: Alexander Hamilton as our founder, I mean, what a visionary, 389 00:19:03,480 --> 00:19:04,600 Speaker 8: what a revolutionary? 390 00:19:04,760 --> 00:19:06,960 Speaker 7: So I I don't mind sharing. 391 00:19:07,040 --> 00:19:09,200 Speaker 5: And what would you think of b and why Melonson? 392 00:19:09,520 --> 00:19:13,920 Speaker 8: I think it'd be pretty proud. Yeah, I certainly hope 393 00:19:13,920 --> 00:19:14,480 Speaker 8: he would be. 394 00:19:14,520 --> 00:19:16,080 Speaker 5: Well, I think that that's a good recruiting tool. You 395 00:19:16,160 --> 00:19:18,280 Speaker 5: go go on campuses. You know that Hamilton musical that 396 00:19:18,320 --> 00:19:21,720 Speaker 5: you have eyes. 397 00:19:22,359 --> 00:19:23,040 Speaker 3: Such a good point. 398 00:19:23,080 --> 00:19:25,760 Speaker 2: Ainsley, thanks, love, really appreciate thanks for stopping by with us. 399 00:19:25,920 --> 00:19:28,480 Speaker 2: Ainsley Simmons, President of Pershing X, head of Strategy for 400 00:19:28,480 --> 00:19:31,040 Speaker 2: Being y Melon's Perching and head of product management for 401 00:19:31,119 --> 00:19:31,639 Speaker 2: Being My. 402 00:19:31,480 --> 00:19:33,240 Speaker 5: Men Canadian and Canadian. 403 00:19:33,320 --> 00:19:35,440 Speaker 3: There's so much that she does. 404 00:19:35,880 --> 00:19:42,639 Speaker 1: Apparently you're listening to the Bloomberg Intelligence Podcast. Catch us 405 00:19:42,680 --> 00:19:46,080 Speaker 1: live weekdays at ten am Eastern on applecar Play and 406 00:19:46,080 --> 00:19:49,000 Speaker 1: Android Auto with a Bloomberg Business app. You can also 407 00:19:49,080 --> 00:19:52,240 Speaker 1: listen live on Amazon Alexa from our flagship New York 408 00:19:52,320 --> 00:19:57,880 Speaker 1: station just Say Alexa playing Bloomberg eleven thirty. 409 00:19:57,440 --> 00:19:59,720 Speaker 5: Alex Feel Pulse when you live here in our down 410 00:19:59,720 --> 00:20:03,840 Speaker 5: the Ashville, Tennessee. At the b NY Mellon Insight conference, 411 00:20:03,880 --> 00:20:07,680 Speaker 5: we are at the Gaylord Entertainment Grand opry Land Resort, 412 00:20:07,800 --> 00:20:10,440 Speaker 5: and this is a serious resort. So if you're ever 413 00:20:10,480 --> 00:20:12,320 Speaker 5: done in the Nashville area, come take a look. They 414 00:20:12,359 --> 00:20:14,960 Speaker 5: got everything here, all right, Alex and I've been spending 415 00:20:15,000 --> 00:20:16,560 Speaker 5: the past a day or so talking to a lot 416 00:20:16,560 --> 00:20:18,960 Speaker 5: of the good folks at bny Mellon about how they 417 00:20:19,160 --> 00:20:23,399 Speaker 5: try to serve their investor clients. Let's see if they 418 00:20:23,440 --> 00:20:25,440 Speaker 5: actually get it done here. No, I'm Tash, he joins 419 00:20:25,440 --> 00:20:27,879 Speaker 5: its head of Revenue and Partnerships at BNY Mellon's Pershing 420 00:20:28,040 --> 00:20:30,840 Speaker 5: X and Mohan grew up Pockum. He's a chief information 421 00:20:30,920 --> 00:20:35,920 Speaker 5: officer at Stewart Partners and investment advisory firm. So we 422 00:20:36,040 --> 00:20:38,320 Speaker 5: got client, we got like the person who kind of 423 00:20:38,320 --> 00:20:40,560 Speaker 5: works for the client. We got all together here at 424 00:20:40,640 --> 00:20:44,800 Speaker 5: one stage. So no, and let's talk about let's talk 425 00:20:44,800 --> 00:20:47,240 Speaker 5: to you first, what type of investor? What type of 426 00:20:47,320 --> 00:20:49,520 Speaker 5: clients do you guys look for on your platform? What's 427 00:20:49,520 --> 00:20:52,560 Speaker 5: an ideal type of money management client for you guys 428 00:20:52,560 --> 00:20:53,080 Speaker 5: at B and Y. 429 00:20:53,119 --> 00:20:55,080 Speaker 7: Persian'side from obviously O. 430 00:20:55,560 --> 00:20:57,479 Speaker 10: Mohans the ideal and you be sure a bit more 431 00:20:57,480 --> 00:21:00,080 Speaker 10: about that, but we look at the whole range. We 432 00:21:00,119 --> 00:21:02,760 Speaker 10: can serve everybody, everything from a traditional broker dealer to 433 00:21:03,160 --> 00:21:08,240 Speaker 10: independent ria or hybrids, aggregators and you know, fast growing 434 00:21:08,280 --> 00:21:12,480 Speaker 10: companies is really where we are. We believe that heavy 435 00:21:12,560 --> 00:21:15,159 Speaker 10: tech adopters are the ones that are growing fastest. We 436 00:21:15,240 --> 00:21:19,119 Speaker 10: actually see research that tells us that advisory firms that 437 00:21:19,240 --> 00:21:22,840 Speaker 10: adopt tech heavily you can see client growth and AUM 438 00:21:22,920 --> 00:21:23,880 Speaker 10: growth of three. 439 00:21:23,960 --> 00:21:25,359 Speaker 5: X what do others do? 440 00:21:25,880 --> 00:21:29,880 Speaker 10: And so those are the types of provider of advisors 441 00:21:29,960 --> 00:21:31,760 Speaker 10: we want to work with because what we're doing is 442 00:21:31,800 --> 00:21:35,200 Speaker 10: delivering delivering to them the most connected tech because there's 443 00:21:35,200 --> 00:21:37,600 Speaker 10: still even for those adopters, there's still a lot of 444 00:21:37,720 --> 00:21:39,600 Speaker 10: challenges and pains that come along with that tech. 445 00:21:39,920 --> 00:21:43,040 Speaker 2: So Mohan, Stewart Partners is actually quite large, right, Can 446 00:21:43,080 --> 00:21:45,680 Speaker 2: you tell us a little bit about the firm and 447 00:21:45,800 --> 00:21:47,240 Speaker 2: sort of what works for. 448 00:21:47,359 --> 00:21:48,800 Speaker 3: You that Pershing X is doing. 449 00:21:49,240 --> 00:21:51,280 Speaker 11: So absolutely thanks for having us. First of all, So 450 00:21:51,640 --> 00:21:54,359 Speaker 11: Stewart Partners, we are a hybrida, we are a blocker 451 00:21:54,440 --> 00:21:58,080 Speaker 11: dealer and we're headquartered in New York. Roughly thirty five 452 00:21:58,080 --> 00:22:01,240 Speaker 11: billion dollars in assets, two hundreds on the advisors. A 453 00:22:01,320 --> 00:22:05,240 Speaker 11: lot of our advisors come from a breakaway firms from 454 00:22:05,280 --> 00:22:08,879 Speaker 11: the bultch firms like big firms. Some of the officers 455 00:22:08,960 --> 00:22:13,320 Speaker 11: softly twenty six states a large footprint and in terms 456 00:22:13,359 --> 00:22:15,840 Speaker 11: of our relationship with posing. You know, we have two 457 00:22:15,880 --> 00:22:19,679 Speaker 11: strategic relationships. One is for the custody business obviously right 458 00:22:20,560 --> 00:22:24,760 Speaker 11: the biggest player, and of course beyond the custody we 459 00:22:24,840 --> 00:22:27,520 Speaker 11: are also very excited to be part of the Pushing X. 460 00:22:28,160 --> 00:22:30,840 Speaker 11: We are one of the earlier actors. We just started 461 00:22:30,880 --> 00:22:34,520 Speaker 11: the rollout, so more feedback to come, but we are 462 00:22:34,520 --> 00:22:37,080 Speaker 11: truly excited by what we're going to see. 463 00:22:37,359 --> 00:22:40,119 Speaker 5: Mohun, I've heard. I guess what we've learned over the 464 00:22:40,200 --> 00:22:43,040 Speaker 5: last couple of days is that the number of advisors 465 00:22:43,080 --> 00:22:45,080 Speaker 5: out there isn't growing. There's a greater demand. There's more 466 00:22:45,119 --> 00:22:48,359 Speaker 5: demand for advisors than maybe there are advisors. How do 467 00:22:48,440 --> 00:22:50,520 Speaker 5: you grow your advisor base? Do you wait for some 468 00:22:50,600 --> 00:22:52,600 Speaker 5: of your breakaway from a bultch bracket firm. Do you 469 00:22:53,119 --> 00:22:55,760 Speaker 5: you try to go out there and attract them proactively? 470 00:22:55,800 --> 00:22:56,440 Speaker 5: How does that happen? 471 00:22:56,640 --> 00:22:58,800 Speaker 11: So we look at two different options. The first one 472 00:22:58,960 --> 00:23:02,200 Speaker 11: is obviously approved my right, there are breakaway advisors. So 473 00:23:02,280 --> 00:23:04,879 Speaker 11: if you look at the breakaway advisors, they are mostly 474 00:23:04,960 --> 00:23:08,480 Speaker 11: seeking independence. That is something that is not well understood. 475 00:23:08,480 --> 00:23:10,720 Speaker 11: They seek independence in how they run the business. 476 00:23:10,840 --> 00:23:12,560 Speaker 5: So this is somebody from say like a Merrill Inch 477 00:23:12,640 --> 00:23:15,320 Speaker 5: or something, or Morgan Stanley says, I want to kind 478 00:23:15,320 --> 00:23:16,719 Speaker 5: of go out on my own a little bit, get 479 00:23:16,760 --> 00:23:17,760 Speaker 5: a little bit more autonomy. 480 00:23:18,280 --> 00:23:20,399 Speaker 11: Well at autonomy and how they run the business, and 481 00:23:20,600 --> 00:23:24,080 Speaker 11: that inevitably translates into the technology stack. We need to 482 00:23:24,119 --> 00:23:28,240 Speaker 11: win for them, right, That is one option. But also 483 00:23:28,400 --> 00:23:30,080 Speaker 11: we are looking at a lot of M and as 484 00:23:30,720 --> 00:23:34,760 Speaker 11: this pace is quite i would say, like active. 485 00:23:34,520 --> 00:23:35,359 Speaker 5: In the M and day space. 486 00:23:35,400 --> 00:23:37,560 Speaker 11: If you look at the number of areas with more 487 00:23:37,600 --> 00:23:41,160 Speaker 11: than ten billion dollars in azards like ten fifteen years 488 00:23:41,240 --> 00:23:44,440 Speaker 11: versus where it is right now, that segment is growing 489 00:23:44,600 --> 00:23:48,280 Speaker 11: really fast. So we look at multiple options. You know, recruitment, 490 00:23:48,920 --> 00:23:51,280 Speaker 11: we have a very robus pipeline, but also we are 491 00:23:51,400 --> 00:23:53,399 Speaker 11: very active in the M and day space and we 492 00:23:53,440 --> 00:23:55,600 Speaker 11: will not hesitate to go after the right target. 493 00:23:55,800 --> 00:23:56,720 Speaker 5: That was one of the topics. 494 00:23:56,800 --> 00:23:58,840 Speaker 10: You Actually Mohan joined me on a panel yesterday and 495 00:23:58,880 --> 00:24:01,320 Speaker 10: one of the topics was how do we differentiate leveraging 496 00:24:01,400 --> 00:24:04,800 Speaker 10: tech in a heavily active M and A environment and 497 00:24:04,920 --> 00:24:06,680 Speaker 10: how do we recruit and keep those assets at the 498 00:24:06,720 --> 00:24:10,240 Speaker 10: advisory form firm. A lot a lot of that is 499 00:24:10,359 --> 00:24:14,959 Speaker 10: where we're trying to add in value as as woe offering, flexibility, offering, 500 00:24:15,119 --> 00:24:18,600 Speaker 10: connectivity and really allowing these advisors that are breaking away 501 00:24:18,680 --> 00:24:21,000 Speaker 10: to still have that comfort of a full stack that 502 00:24:21,240 --> 00:24:23,280 Speaker 10: oftentimes can be really challenging if you're try and go 503 00:24:23,320 --> 00:24:24,520 Speaker 10: out there on your own and start over. 504 00:24:25,119 --> 00:24:28,680 Speaker 3: How does the relationship between client and provider work? Like, 505 00:24:29,119 --> 00:24:30,639 Speaker 3: does mohon go to you and is like, look, no, 506 00:24:30,840 --> 00:24:31,760 Speaker 3: I got some problems. 507 00:24:31,800 --> 00:24:33,360 Speaker 2: I need to help me fix them, Like how can 508 00:24:33,400 --> 00:24:35,680 Speaker 2: you help my efficiency or productivity? Or do you go 509 00:24:35,760 --> 00:24:37,800 Speaker 2: to them and say, look, these things are going to 510 00:24:37,840 --> 00:24:39,600 Speaker 2: make your lives a lot better and this is why. 511 00:24:39,720 --> 00:24:40,560 Speaker 3: How does this evolve? 512 00:24:40,880 --> 00:24:42,119 Speaker 10: It always starts with the client. 513 00:24:42,560 --> 00:24:44,120 Speaker 3: Okay, so you were like, I need help. 514 00:24:44,200 --> 00:24:46,240 Speaker 11: It's always a dialect, right, I think that's the most 515 00:24:46,280 --> 00:24:47,560 Speaker 11: important part. It's a dialect. 516 00:24:47,640 --> 00:24:48,359 Speaker 5: It's it's not. 517 00:24:50,160 --> 00:24:54,680 Speaker 11: You know, uh, it's it's both. It's both ways. Be 518 00:24:54,840 --> 00:24:57,119 Speaker 11: give the feedback in terms of what we hear and 519 00:24:57,200 --> 00:24:59,560 Speaker 11: what we see. We have much closer to the advisors, 520 00:24:59,800 --> 00:25:01,800 Speaker 11: like because we work with them on a day to 521 00:25:01,880 --> 00:25:05,040 Speaker 11: day basis, and we also, you know, like to hear 522 00:25:05,160 --> 00:25:10,159 Speaker 11: from the broader trends from you know, closing closing X. 523 00:25:11,080 --> 00:25:14,760 Speaker 11: They obviously see a much broader size of the market 524 00:25:14,840 --> 00:25:18,560 Speaker 11: than we do, so we send feedback, we get feedback. 525 00:25:18,960 --> 00:25:22,119 Speaker 11: We both jointly put together technology strategies to help us 526 00:25:22,160 --> 00:25:22,600 Speaker 11: move off. 527 00:25:22,520 --> 00:25:25,160 Speaker 10: The We have a philosophy of meeting our clients where 528 00:25:25,200 --> 00:25:28,600 Speaker 10: they are, so we're never coming and trying to pitch 529 00:25:28,640 --> 00:25:29,040 Speaker 10: a widget. 530 00:25:29,480 --> 00:25:30,760 Speaker 5: We're always coming and listening. 531 00:25:30,840 --> 00:25:32,840 Speaker 10: Where do you have your biggest pain points and let's 532 00:25:32,840 --> 00:25:35,120 Speaker 10: figure out how we can help solve those pain points 533 00:25:35,200 --> 00:25:37,159 Speaker 10: or even advise you as to where we're seeing clients 534 00:25:37,359 --> 00:25:39,320 Speaker 10: go elsewhere to solve those pain points. 535 00:25:39,520 --> 00:25:40,640 Speaker 5: Who's your biggest competitor? 536 00:25:41,560 --> 00:25:44,040 Speaker 10: That's a great question, I think right now, end to end, 537 00:25:44,160 --> 00:25:47,440 Speaker 10: it's a there's a different types of competitors. There's the 538 00:25:47,480 --> 00:25:49,480 Speaker 10: fully outsourced model that we see some clients go to 539 00:25:49,520 --> 00:25:52,200 Speaker 10: where they're getting everything all in one shop, but they're 540 00:25:52,240 --> 00:25:55,000 Speaker 10: also you know, have to sacrifice a bit of their 541 00:25:55,040 --> 00:25:58,639 Speaker 10: brand and independence. And then there's dissemblers, those clients that 542 00:25:58,840 --> 00:26:00,520 Speaker 10: are going out there and quite a little really putting 543 00:26:00,520 --> 00:26:04,119 Speaker 10: together twelve different pieces of technology. And then you have 544 00:26:04,200 --> 00:26:06,040 Speaker 10: this new category that we've brought to the market, and 545 00:26:06,119 --> 00:26:08,639 Speaker 10: so the new category of actually having it curated for 546 00:26:08,800 --> 00:26:09,960 Speaker 10: you in one spot. 547 00:26:10,280 --> 00:26:11,560 Speaker 5: I think it's really a new category. 548 00:26:12,240 --> 00:26:14,679 Speaker 3: What do you want him to fix next? What are 549 00:26:14,720 --> 00:26:16,560 Speaker 3: you telling him, now, well. 550 00:26:18,040 --> 00:26:23,000 Speaker 11: Stay through to the core philosophy of being flexible but integrated. 551 00:26:23,240 --> 00:26:23,359 Speaker 3: Right. 552 00:26:23,480 --> 00:26:26,280 Speaker 11: That is my one feedback, which is, you know, we 553 00:26:26,320 --> 00:26:30,000 Speaker 11: should not lose sight of the broader philosophy, which is 554 00:26:30,080 --> 00:26:34,880 Speaker 11: to build a technology ecosystem that works for the advisor. 555 00:26:35,560 --> 00:26:38,160 Speaker 11: They sign our paychecks, so we got to make sure 556 00:26:38,200 --> 00:26:39,680 Speaker 11: that they're happy at the end of the day. 557 00:26:40,240 --> 00:26:40,680 Speaker 7: Fair point. 558 00:26:40,720 --> 00:26:41,639 Speaker 3: All right, guys, thanks for coming by. 559 00:26:41,720 --> 00:26:42,520 Speaker 7: This was really helpful. 560 00:26:42,600 --> 00:26:44,760 Speaker 2: We got the Lolan wove before and it's nice to 561 00:26:44,800 --> 00:26:47,960 Speaker 2: see how it interacts Nome Tash He's head of Revenue 562 00:26:47,960 --> 00:26:50,560 Speaker 2: and Partnerships at ME and Y Melons Pershing X and 563 00:26:50,680 --> 00:26:54,239 Speaker 2: also a Mohan Guru Pakiam, a Chief information officer at 564 00:26:54,359 --> 00:26:59,439 Speaker 2: Steward Partners or the interconnection between client and technology. 565 00:26:59,480 --> 00:27:00,239 Speaker 3: Thank you so much much. 566 00:27:00,280 --> 00:27:05,639 Speaker 1: Guys, you're listening to the Bloomberg Intelligence Podcast. Catch us 567 00:27:05,720 --> 00:27:08,960 Speaker 1: live weekdays at ten am Eastern on applecar Play and 568 00:27:09,119 --> 00:27:12,000 Speaker 1: Android Auto with the Bloomberg Business app. You can also 569 00:27:12,119 --> 00:27:15,560 Speaker 1: listen live on Amazon Alexa from our flagship New York station, 570 00:27:15,960 --> 00:27:21,119 Speaker 1: Just Say Alexa playing Bloomberg eleven thirty Alex Deal Paul Sweeney. 571 00:27:21,119 --> 00:27:23,679 Speaker 5: We were live here in Nashville, Tennessee. At the BNY 572 00:27:23,800 --> 00:27:28,680 Speaker 5: Mellon Insight Conference. We are at the Gaylord opry Land Resort, 573 00:27:28,800 --> 00:27:33,200 Speaker 5: which is this spectacular, world class water park. Alex did 574 00:27:33,240 --> 00:27:34,320 Speaker 5: you go yesterday? John Right? 575 00:27:34,359 --> 00:27:34,640 Speaker 3: I did. 576 00:27:35,000 --> 00:27:36,760 Speaker 5: Some kids tried to cut line in front of me. 577 00:27:36,800 --> 00:27:39,040 Speaker 5: He's gonna think twice about doing that again. Let him 578 00:27:39,040 --> 00:27:40,159 Speaker 5: believe it that exactly. 579 00:27:40,240 --> 00:27:42,600 Speaker 3: This is a good life lesson that one must learn exactly. 580 00:27:42,840 --> 00:27:44,920 Speaker 5: Hanaka Smith joins us here. She's a global head of 581 00:27:44,920 --> 00:27:47,840 Speaker 5: Investment Management at BNY Mellon. Hanneack, I know in the 582 00:27:47,880 --> 00:27:50,280 Speaker 5: investment management business for BNY melon. You guys had a 583 00:27:50,320 --> 00:27:52,879 Speaker 5: pretty big announcement this morning. Talk to us about that. 584 00:27:53,400 --> 00:27:56,240 Speaker 12: Yeah, so we're actually announced something in collaboration with our colleagues. 585 00:27:56,280 --> 00:27:58,560 Speaker 12: It's Pershing, which is why I'm so excited to be here. 586 00:27:58,680 --> 00:28:03,880 Speaker 12: And that's a bundled service offering between Pershing and investment Management. 587 00:28:04,400 --> 00:28:12,959 Speaker 12: So Pershing, of course already offers custody retail managed accounts capabilities, 588 00:28:13,080 --> 00:28:15,200 Speaker 12: and now what we're also going to be offering clients 589 00:28:15,280 --> 00:28:18,640 Speaker 12: is access to investment management products, but in a much 590 00:28:18,720 --> 00:28:21,840 Speaker 12: more cost effective way than they've been able to access before. 591 00:28:22,240 --> 00:28:23,960 Speaker 12: And the way this is going to work is that 592 00:28:24,040 --> 00:28:26,240 Speaker 12: once they're on what we call the WOVE platform in 593 00:28:26,320 --> 00:28:31,840 Speaker 12: this tech enabled environment and manage their accounts through pershing. 594 00:28:32,520 --> 00:28:35,760 Speaker 12: The more assets they allocate to IM products, the greater 595 00:28:35,920 --> 00:28:40,200 Speaker 12: the discount up to forty percent. So it's one going 596 00:28:40,280 --> 00:28:43,520 Speaker 12: to simplify advisor's life because they it will free up 597 00:28:43,800 --> 00:28:47,600 Speaker 12: time through this tech enables environment. It's also going to 598 00:28:47,680 --> 00:28:50,680 Speaker 12: give them choice and it's also going to reduce the cost, 599 00:28:50,800 --> 00:28:51,960 Speaker 12: which is really important. 600 00:28:52,440 --> 00:28:55,200 Speaker 3: What I mean, aside from the cost, what problem was 601 00:28:55,280 --> 00:28:56,200 Speaker 3: this trying to solve? 602 00:28:58,040 --> 00:29:01,280 Speaker 7: So it is one of the things that. 603 00:29:01,360 --> 00:29:04,440 Speaker 12: Is trying to solve is actually giving advisors more time 604 00:29:04,720 --> 00:29:08,560 Speaker 12: to spend with their end client because the environment for 605 00:29:08,720 --> 00:29:14,240 Speaker 12: them is becoming increasingly complex through regulatory pressures, technology pressures. 606 00:29:14,320 --> 00:29:17,520 Speaker 12: And the first thing that this is resolving this first 607 00:29:17,840 --> 00:29:22,080 Speaker 12: through onboarding clients onto the WOVE platform or the advisors, 608 00:29:22,200 --> 00:29:27,520 Speaker 12: which is where they can bring their technology and their apps. 609 00:29:27,560 --> 00:29:30,600 Speaker 12: And then secondly we're going to be helping them by 610 00:29:30,720 --> 00:29:37,000 Speaker 12: putting institutional quality portfolio advice on that platform and also 611 00:29:37,120 --> 00:29:40,800 Speaker 12: giving them the full breadth of investment management product as 612 00:29:40,840 --> 00:29:41,320 Speaker 12: a choice. 613 00:29:41,680 --> 00:29:43,720 Speaker 5: It seems like this was something that should have been 614 00:29:43,800 --> 00:29:46,360 Speaker 5: done day one. Why is it happening now? 615 00:29:47,520 --> 00:29:52,320 Speaker 12: It is happening now, partly because we have been working 616 00:29:52,600 --> 00:29:57,640 Speaker 12: quite hard in insight being wide to be more for 617 00:29:57,760 --> 00:30:00,360 Speaker 12: our clients, as we call it, we have better technoology 618 00:30:00,480 --> 00:30:04,160 Speaker 12: solutions that we didn't have before. And Thirdly, and also 619 00:30:04,240 --> 00:30:10,320 Speaker 12: really importantly, we've been investing time in educating our colleagues 620 00:30:10,400 --> 00:30:14,040 Speaker 12: that work with the advisors about the expertise that exists 621 00:30:14,280 --> 00:30:17,400 Speaker 12: in investment management two degree that we hadn't done before. 622 00:30:17,920 --> 00:30:21,320 Speaker 12: What's been the response so far, Well, we're it's a 623 00:30:21,400 --> 00:30:25,920 Speaker 12: day old. We have of course tested this with some 624 00:30:26,160 --> 00:30:28,240 Speaker 12: clients before we sort of rolled it out into the 625 00:30:28,320 --> 00:30:31,040 Speaker 12: broader market, and it's been very very well received, and 626 00:30:31,440 --> 00:30:36,080 Speaker 12: working with some of our key clients considering these offerings 627 00:30:36,200 --> 00:30:39,400 Speaker 12: previously really made us consider that we should roll this 628 00:30:39,480 --> 00:30:39,920 Speaker 12: out further. 629 00:30:40,360 --> 00:30:43,560 Speaker 5: As globalhead of Investment Management at BNY Mellon, how are 630 00:30:43,600 --> 00:30:46,520 Speaker 5: you guys viewing the market here these days when you 631 00:30:46,680 --> 00:30:48,880 Speaker 5: kind of just start from the thirty thousand foot level, 632 00:30:49,320 --> 00:30:50,120 Speaker 5: where do you start? 633 00:30:51,040 --> 00:30:52,000 Speaker 7: So where do you start? 634 00:30:52,120 --> 00:30:55,920 Speaker 12: Well, it's very difficult not to start without talking about rates, 635 00:30:56,040 --> 00:30:59,200 Speaker 12: what's going to happen. And we're still of the view 636 00:30:59,280 --> 00:31:02,760 Speaker 12: that rates will be higher for longer and that we're 637 00:31:02,840 --> 00:31:05,600 Speaker 12: coming out of what was an abnormal environment in a 638 00:31:05,760 --> 00:31:11,400 Speaker 12: very low rate environment. Notwithstanding that, we are expecting perhaps 639 00:31:11,480 --> 00:31:14,640 Speaker 12: a rate cut later in the year, both here as 640 00:31:14,680 --> 00:31:16,120 Speaker 12: well as it will be interesting to see what the 641 00:31:16,200 --> 00:31:19,000 Speaker 12: ECB is going to do tomorrow as well. There's been 642 00:31:19,480 --> 00:31:22,520 Speaker 12: tiny optic in inflation in Europe, but it was really 643 00:31:22,560 --> 00:31:25,080 Speaker 12: really tiny that it seemed to be set for a 644 00:31:25,200 --> 00:31:25,600 Speaker 12: rate cut. 645 00:31:25,680 --> 00:31:27,680 Speaker 3: Will be if they have telegrammed that raid cut that 646 00:31:27,760 --> 00:31:28,400 Speaker 3: if they didn't know. 647 00:31:30,440 --> 00:31:34,000 Speaker 12: So that's of course on industor's mind, but we're keenley 648 00:31:34,080 --> 00:31:36,560 Speaker 12: of course, what really watching what the Fed is going 649 00:31:36,640 --> 00:31:40,440 Speaker 12: to do, and it does seem that there's some that 650 00:31:40,560 --> 00:31:43,760 Speaker 12: the economy is slowing down a little bit. I was 651 00:31:43,840 --> 00:31:48,760 Speaker 12: actually looking through some of the figures around hiring and 652 00:31:48,880 --> 00:31:51,240 Speaker 12: what's really interesting to see is that the hiring rate 653 00:31:51,400 --> 00:31:52,040 Speaker 12: is slowing down. 654 00:31:52,120 --> 00:31:53,120 Speaker 7: I know we're always. 655 00:31:52,840 --> 00:31:56,920 Speaker 12: Looking at employment figures, but hiring rates slowing down, I 656 00:31:57,000 --> 00:32:00,240 Speaker 12: think is also a sign. Plus, the data that we 657 00:32:00,400 --> 00:32:03,400 Speaker 12: saw coming out of manufacturing may indicates a little bit 658 00:32:03,440 --> 00:32:05,960 Speaker 12: of a slowdown and may lead to a cut. 659 00:32:06,320 --> 00:32:08,800 Speaker 2: What I find so interesting about this moment in time 660 00:32:09,720 --> 00:32:14,600 Speaker 2: is that we're really reversing like fifteen years of zero 661 00:32:15,280 --> 00:32:19,560 Speaker 2: interest rates and twenty years of no inflation, and now 662 00:32:19,680 --> 00:32:23,360 Speaker 2: you have a world where fixed income makes money, Yes, 663 00:32:23,920 --> 00:32:26,000 Speaker 2: just from the dividend, like I mean actually yeah, like 664 00:32:26,360 --> 00:32:28,920 Speaker 2: cash makes money. I mean, forget about appreciation anything. You 665 00:32:28,960 --> 00:32:31,640 Speaker 2: can just make money by sitting there. And I wonder 666 00:32:32,000 --> 00:32:36,240 Speaker 2: how that changes what a wealth manager does. I mean, 667 00:32:36,920 --> 00:32:39,280 Speaker 2: this has been a world that hasn't been seen in 668 00:32:39,440 --> 00:32:43,400 Speaker 2: like two generations of investors at this point. How does 669 00:32:43,440 --> 00:32:45,040 Speaker 2: someone with your experience think about that? 670 00:32:45,520 --> 00:32:48,239 Speaker 12: Well, that in itself is actually quite a big issue, right. 671 00:32:48,360 --> 00:32:50,280 Speaker 12: We have a lot of people who are just not 672 00:32:50,440 --> 00:32:54,240 Speaker 12: experienced in this type of environment, who on their own 673 00:32:54,400 --> 00:32:58,520 Speaker 12: actually have considerable experience, maybe fifteen or twenty years of investing, 674 00:32:58,640 --> 00:33:00,840 Speaker 12: but they haven't seen this before for and they don't 675 00:33:00,960 --> 00:33:04,360 Speaker 12: really know how to react. So it is important that 676 00:33:04,520 --> 00:33:07,480 Speaker 12: people like us keep training not only our own colleagues, 677 00:33:07,520 --> 00:33:10,760 Speaker 12: but then also the end advisor as they work with clients, 678 00:33:10,800 --> 00:33:13,680 Speaker 12: because you need to plan for your future and we 679 00:33:13,880 --> 00:33:19,200 Speaker 12: do know, of course we're hitting we're hitting the issue 680 00:33:19,280 --> 00:33:22,720 Speaker 12: of how clients are going to fund their retirement, and 681 00:33:22,840 --> 00:33:26,920 Speaker 12: we haven't really solved for that, so you could perhaps 682 00:33:27,120 --> 00:33:30,120 Speaker 12: you know, income will be important and in a higher 683 00:33:30,280 --> 00:33:34,960 Speaker 12: rate environment and inflation coming down that rate environment will 684 00:33:35,000 --> 00:33:38,320 Speaker 12: actually be quite helpful with income, but that will not 685 00:33:38,440 --> 00:33:41,280 Speaker 12: be sustainable so that when you think about retirement sort 686 00:33:41,280 --> 00:33:44,000 Speaker 12: of over a fifteen twenty year term, so you will 687 00:33:44,080 --> 00:33:47,840 Speaker 12: also have to continue to have some risk other risk 688 00:33:47,960 --> 00:33:52,040 Speaker 12: assets in the portfolio with a longer term view to 689 00:33:52,120 --> 00:33:55,280 Speaker 12: both grow your capital base that also have assets in 690 00:33:55,360 --> 00:33:59,920 Speaker 12: the portfolio that can generate income, and that whole diver 691 00:34:00,120 --> 00:34:04,000 Speaker 12: versification journey, how to plan for that is a journey 692 00:34:04,040 --> 00:34:05,160 Speaker 12: in itself, you. 693 00:34:05,160 --> 00:34:08,600 Speaker 5: Know, coming to events like this, I was always surprised 694 00:34:08,640 --> 00:34:11,200 Speaker 5: about alternative investments and how they are top of mind 695 00:34:11,320 --> 00:34:13,360 Speaker 5: on some of these wealth managers. I thought that was 696 00:34:13,440 --> 00:34:18,560 Speaker 5: just a big institutional allocation, but retail I mean, you 697 00:34:18,640 --> 00:34:21,800 Speaker 5: know rias are thinking about that. How do you What 698 00:34:21,920 --> 00:34:24,040 Speaker 5: are the conversations that you have with some of these people. 699 00:34:24,239 --> 00:34:26,600 Speaker 12: Well, we are, We were just in a conversation earlier 700 00:34:26,640 --> 00:34:30,040 Speaker 12: this morning with Jenny Johnson from Franklin Templeton as well, 701 00:34:30,080 --> 00:34:33,040 Speaker 12: and we are seeing the demands coming through from the 702 00:34:33,200 --> 00:34:35,359 Speaker 12: end investor. So first of all, you need to think 703 00:34:35,400 --> 00:34:41,280 Speaker 12: about how we make those investments accessible to a retail investor, 704 00:34:41,360 --> 00:34:43,759 Speaker 12: because you still need to be a qualified investor to 705 00:34:43,800 --> 00:34:46,920 Speaker 12: actually access those products. Then secondly, you need to make 706 00:34:46,960 --> 00:34:50,680 Speaker 12: sure that the advisors are appropriately trained to really explain 707 00:34:50,800 --> 00:34:53,239 Speaker 12: to the end investor the risks that come with a 708 00:34:53,360 --> 00:34:55,800 Speaker 12: type of investment. They can provide a lot of upside. 709 00:34:55,920 --> 00:35:01,120 Speaker 12: They're obviously have to create the opportunity to generate higher 710 00:35:01,200 --> 00:35:04,200 Speaker 12: returns someone who can achieve in the public markets, both 711 00:35:04,239 --> 00:35:08,920 Speaker 12: fixed and equities. But the investments are illiquid. 712 00:35:09,880 --> 00:35:12,000 Speaker 3: And so you have to plan for that. 713 00:35:12,200 --> 00:35:15,200 Speaker 12: And it does mean that those investments cannot be a 714 00:35:15,440 --> 00:35:19,160 Speaker 12: very large allocation of end client's portfolios, and that has 715 00:35:19,239 --> 00:35:22,880 Speaker 12: to be well understood and appropriately managed from. 716 00:35:22,760 --> 00:35:24,880 Speaker 3: A risk respective like hunder ten percent. 717 00:35:25,120 --> 00:35:28,200 Speaker 12: Yeah, but I think what's also happening. I think the 718 00:35:28,360 --> 00:35:33,799 Speaker 12: markets have been running quite hot. There's also fewer listed companies, right, 719 00:35:33,920 --> 00:35:36,719 Speaker 12: that's just there are fewer companies going IPO. We've also 720 00:35:36,760 --> 00:35:39,400 Speaker 12: seen a trend of the D listings, so there's actually 721 00:35:39,480 --> 00:35:42,440 Speaker 12: fewer companies available. So if you want to invest in 722 00:35:42,520 --> 00:35:45,440 Speaker 12: the US economy, you kind of have to go private. 723 00:35:46,000 --> 00:35:46,920 Speaker 3: Such great insight. 724 00:35:47,080 --> 00:35:49,560 Speaker 2: Really appreciate your time, Thank you so much for stopping by, 725 00:35:49,600 --> 00:35:54,080 Speaker 2: Congratulations and unveiling your new Speedo products. Hanaga Smid's a 726 00:35:54,080 --> 00:35:57,759 Speaker 2: global head of investment management for b ny Melon, and 727 00:35:57,840 --> 00:36:01,640 Speaker 2: that's so interesting. It's like, yes, you're gonna have alternative assets. 728 00:36:01,320 --> 00:36:03,239 Speaker 3: Be a part of the portfolio, but I don't know 729 00:36:03,280 --> 00:36:05,080 Speaker 3: if we know just how much that's going to be. 730 00:36:05,400 --> 00:36:07,160 Speaker 5: And you mentioned that ten percent number. I remember being 731 00:36:07,200 --> 00:36:08,799 Speaker 5: in a conversation with one of these events a couple 732 00:36:08,800 --> 00:36:11,520 Speaker 5: of years ago, and some retail advisors were saying, no, 733 00:36:11,800 --> 00:36:15,120 Speaker 5: twenty thirty, forty percent. I mean, that's kind of almost 734 00:36:15,160 --> 00:36:17,880 Speaker 5: like an endowment allocation with good Yeah, when you go 735 00:36:17,920 --> 00:36:21,040 Speaker 5: to an endowment. And so that really surprised me that 736 00:36:21,080 --> 00:36:23,880 Speaker 5: they're willing to take that level of risk on, or 737 00:36:23,960 --> 00:36:25,680 Speaker 5: the private our clients are probably willing to take that 738 00:36:25,880 --> 00:36:28,200 Speaker 5: level of risk on. So it's private equity, private credit, 739 00:36:28,640 --> 00:36:31,440 Speaker 5: hedge funds, all those types of things are out there. 740 00:36:34,040 --> 00:36:37,879 Speaker 1: You're listening to the Bloomberg Intelligence Podcast. Catch us live 741 00:36:38,000 --> 00:36:41,520 Speaker 1: weekdays at ten am Eastern on applecar Play and Android 742 00:36:41,560 --> 00:36:44,279 Speaker 1: Auto with the Bloomberg Business App. You can also listen 743 00:36:44,440 --> 00:36:47,520 Speaker 1: live on Amazon Alexa from our flagship New York station 744 00:36:47,920 --> 00:36:50,640 Speaker 1: just say Alexa playing Bloomberg eleven thirty. 745 00:36:51,840 --> 00:36:53,319 Speaker 3: It's a Bloomberg Intelligence Radio. 746 00:36:53,560 --> 00:36:55,160 Speaker 2: We bring you all the top news and finance and 747 00:36:55,200 --> 00:36:57,520 Speaker 2: business through our lens of our Bloomberg Intelligence analysts. They 748 00:36:57,600 --> 00:36:59,800 Speaker 2: cover two thousand companies at one hundred and thirty in 749 00:36:59,880 --> 00:37:02,360 Speaker 2: is worldwide. For the last two days, we've had the 750 00:37:02,440 --> 00:37:05,560 Speaker 2: honor being right here in Nashville, Tennessee, broadcasting live from 751 00:37:05,640 --> 00:37:09,560 Speaker 2: the magnificent Gaylord Opuland Resort in Nashville for BNY Melons 752 00:37:09,600 --> 00:37:12,960 Speaker 2: twenty sixth Annual Insight Conference with over two thousand financial 753 00:37:13,000 --> 00:37:16,359 Speaker 2: intermediaries from top asset management firms. We've seen a lot 754 00:37:16,440 --> 00:37:18,440 Speaker 2: of guests that we usually have on TV to stroll 755 00:37:18,520 --> 00:37:20,640 Speaker 2: and buy see of them. Person is always really fun 756 00:37:21,000 --> 00:37:24,000 Speaker 2: and we were just ended the last conversation on alternatives 757 00:37:24,040 --> 00:37:25,600 Speaker 2: and we could not find a better person than to 758 00:37:25,680 --> 00:37:29,040 Speaker 2: talk to about alternatives. Lisa Lewin is director of Prime 759 00:37:29,160 --> 00:37:32,600 Speaker 2: Services at BNY Melons Pershing and she joins us here. Lisa, 760 00:37:32,640 --> 00:37:34,360 Speaker 2: it's great to see you, Thanks for being here. 761 00:37:34,320 --> 00:37:35,840 Speaker 9: Good morning, Thank you for having me. 762 00:37:35,920 --> 00:37:36,680 Speaker 7: It's great to be here. 763 00:37:36,840 --> 00:37:40,239 Speaker 2: So we're just talking to Hanaka about alternatives and what 764 00:37:40,360 --> 00:37:43,200 Speaker 2: part they should play in their portfolio and sort of 765 00:37:43,520 --> 00:37:45,120 Speaker 2: with the risk allocation should be. 766 00:37:45,360 --> 00:37:47,000 Speaker 3: You are on a panel earlier. 767 00:37:46,800 --> 00:37:48,080 Speaker 7: That talked about just that. 768 00:37:48,680 --> 00:37:49,920 Speaker 3: What were some of your takeaways? 769 00:37:50,040 --> 00:37:53,279 Speaker 9: Yep, absolutely, so we moderated a panel yesterday that was 770 00:37:53,360 --> 00:37:57,200 Speaker 9: on the topic actually around the democratization of alternatives, and 771 00:37:57,280 --> 00:38:00,680 Speaker 9: what we really focused on was the trend that we've 772 00:38:00,760 --> 00:38:03,440 Speaker 9: seen over the last several years here at BNYMEL and 773 00:38:03,520 --> 00:38:07,440 Speaker 9: Pershing and where there's been an increased interest from advisors 774 00:38:07,680 --> 00:38:11,080 Speaker 9: and other clients in the wealth management channel to allocate 775 00:38:11,280 --> 00:38:15,680 Speaker 9: or increase their allocations to alternative investments. So that's obviously 776 00:38:15,800 --> 00:38:17,799 Speaker 9: been very exciting for us since we work with both 777 00:38:17,840 --> 00:38:21,760 Speaker 9: alternative investment managers but also advisors to help them navigate 778 00:38:22,360 --> 00:38:24,279 Speaker 9: kind of what that means for their business, what they 779 00:38:24,320 --> 00:38:27,239 Speaker 9: should be thinking about, how they should look at alternative 780 00:38:27,239 --> 00:38:30,719 Speaker 9: strategies where those can fit into their asset allocation. And 781 00:38:30,840 --> 00:38:33,920 Speaker 9: that's really what we focused on during our discussion yesterday. 782 00:38:34,280 --> 00:38:35,879 Speaker 5: Like I came to one of these events a couple 783 00:38:35,920 --> 00:38:37,920 Speaker 5: of years ago and I was talking to an advisor, 784 00:38:37,960 --> 00:38:41,280 Speaker 5: and I thought that their allocation would have been ten percent, 785 00:38:41,600 --> 00:38:44,800 Speaker 5: it's a lot higher. What's your experience about what some 786 00:38:44,920 --> 00:38:48,200 Speaker 5: of these wealth advisors think about in terms of allocation 787 00:38:48,400 --> 00:38:51,120 Speaker 5: to alternatives. Great question. 788 00:38:51,320 --> 00:38:55,400 Speaker 9: So it's actually really varied from what we've seen advisory community, 789 00:38:55,560 --> 00:38:59,440 Speaker 9: and that really depends a lot on the advisor, kind 790 00:38:59,440 --> 00:39:02,759 Speaker 9: of their comfort for an educational level with alternatives, their 791 00:39:03,080 --> 00:39:06,600 Speaker 9: profile of their clients that they service. We see more 792 00:39:06,680 --> 00:39:08,919 Speaker 9: that right now advisors have more of a I would 793 00:39:08,960 --> 00:39:12,520 Speaker 9: call it maybe two to five percent allocation to alternatives. 794 00:39:12,680 --> 00:39:15,319 Speaker 9: But the data that we've seen and the statistics from 795 00:39:15,320 --> 00:39:17,560 Speaker 9: when we've talked to our clients in this space is 796 00:39:17,640 --> 00:39:20,960 Speaker 9: that they're actually looking to increase their allocation to alternatives 797 00:39:21,360 --> 00:39:24,480 Speaker 9: the closer to ten to fifteen percent of their clients 798 00:39:24,600 --> 00:39:26,000 Speaker 9: overall portfolio waiting. 799 00:39:26,960 --> 00:39:29,000 Speaker 3: So where's the risk here? 800 00:39:29,640 --> 00:39:31,520 Speaker 2: So usually what we talking about private investments like, they 801 00:39:31,600 --> 00:39:34,840 Speaker 2: just are alternative investments. I think of private credit, I 802 00:39:34,840 --> 00:39:36,680 Speaker 2: think of crypto all that kind of stuff. Yeah, they 803 00:39:36,760 --> 00:39:40,040 Speaker 2: haven't been around very long. So what's the conversation around 804 00:39:40,160 --> 00:39:40,880 Speaker 2: risk management? 805 00:39:41,239 --> 00:39:41,959 Speaker 7: Excellent question. 806 00:39:42,120 --> 00:39:45,040 Speaker 9: There's definitely a lot of conversation around risk management, and 807 00:39:45,120 --> 00:39:48,600 Speaker 9: that really folds into the larger conversation which is around 808 00:39:49,239 --> 00:39:51,920 Speaker 9: education and the need for education and alex I think 809 00:39:52,000 --> 00:39:54,439 Speaker 9: to your point, one of the biggest challenges that both 810 00:39:54,600 --> 00:39:59,200 Speaker 9: advisors and alternative investment managers have is trying to provide 811 00:39:59,600 --> 00:40:02,960 Speaker 9: the edge to these clients who have not been as 812 00:40:03,040 --> 00:40:06,480 Speaker 9: traditionally invested in these types of strategies about why they're 813 00:40:06,520 --> 00:40:09,640 Speaker 9: beneficial in their portfolios. So it's talking about everything from 814 00:40:10,200 --> 00:40:15,120 Speaker 9: risk to liquidity to you know, where they provide diversification 815 00:40:15,239 --> 00:40:17,920 Speaker 9: from your traditional stalk and bought investments to how you 816 00:40:17,960 --> 00:40:21,000 Speaker 9: should bucket them and your overall allocation. All of that 817 00:40:21,239 --> 00:40:23,600 Speaker 9: is kind of part of the conversation that is still 818 00:40:23,680 --> 00:40:27,000 Speaker 9: being had in education that you know, a lot of 819 00:40:27,040 --> 00:40:28,680 Speaker 9: people are looking to provide in this space. 820 00:40:29,239 --> 00:40:31,320 Speaker 5: All Right. I grew up with private equity and with 821 00:40:31,480 --> 00:40:34,440 Speaker 5: hedge funds hedge funds as my main alternatives. Now this 822 00:40:34,560 --> 00:40:37,439 Speaker 5: new thing, private credit has come in and become such 823 00:40:37,480 --> 00:40:41,520 Speaker 5: a huge market. What's the view of bny Melon Pershing 824 00:40:41,560 --> 00:40:42,560 Speaker 5: on the private credit market. 825 00:40:42,800 --> 00:40:45,680 Speaker 9: The private credit market has definitely been huge. One of 826 00:40:45,719 --> 00:40:48,160 Speaker 9: the things that my panel has actually talked about yesterday 827 00:40:48,320 --> 00:40:51,359 Speaker 9: is that private credit strategies have actually seen the most 828 00:40:51,480 --> 00:40:55,640 Speaker 9: inflows from their advisor clients, so they've seen certainly a 829 00:40:55,719 --> 00:40:58,320 Speaker 9: lot of interests in private credit strategies. 830 00:40:58,840 --> 00:40:59,000 Speaker 5: You know. 831 00:40:59,080 --> 00:41:00,960 Speaker 9: One of the things that we also heard is that 832 00:41:01,040 --> 00:41:03,840 Speaker 9: a lot of the managers of these private credit strategies 833 00:41:03,960 --> 00:41:07,080 Speaker 9: have really been kind of on the forefront of creating 834 00:41:07,160 --> 00:41:10,480 Speaker 9: structures that make it more like a little easier for 835 00:41:10,840 --> 00:41:12,080 Speaker 9: these clients. 836 00:41:11,719 --> 00:41:13,120 Speaker 5: To access their strategies. 837 00:41:13,200 --> 00:41:15,960 Speaker 9: So that's certainly helped as well, but they can We 838 00:41:16,080 --> 00:41:18,520 Speaker 9: continue to see in my panel has talked about this yesterday, 839 00:41:18,560 --> 00:41:21,120 Speaker 9: a lot of interest in private credit and inflows into 840 00:41:21,160 --> 00:41:21,920 Speaker 9: those strategies. 841 00:41:22,239 --> 00:41:25,480 Speaker 2: How do you think that investors and wealth managers are 842 00:41:25,640 --> 00:41:30,880 Speaker 2: using private credit? Is it long term, riskier bets that 843 00:41:30,920 --> 00:41:32,840 Speaker 2: will return more than say the stock market. 844 00:41:33,640 --> 00:41:35,440 Speaker 7: Is it just hey, let's just throw. 845 00:41:35,280 --> 00:41:38,080 Speaker 2: Some money here, see what happens, because money's going there 846 00:41:38,080 --> 00:41:39,280 Speaker 2: and it could be really good return. 847 00:41:39,440 --> 00:41:40,840 Speaker 3: Like, what's the best use of it? 848 00:41:41,560 --> 00:41:42,319 Speaker 7: Excellent question. 849 00:41:43,040 --> 00:41:45,040 Speaker 9: I think the best use of it from what we're 850 00:41:45,080 --> 00:41:48,040 Speaker 9: seeing is again like another way to diversify away from 851 00:41:48,120 --> 00:41:51,239 Speaker 9: that traditional kind of sixty to forty portfolio allocation that 852 00:41:51,400 --> 00:41:54,680 Speaker 9: so many people have traditionally stuck to. It is another 853 00:41:54,760 --> 00:41:57,760 Speaker 9: way to maybe provide kind of higher returns for their clients, 854 00:41:58,680 --> 00:42:01,360 Speaker 9: you know, diversification again away from the public markets. So 855 00:42:01,480 --> 00:42:06,319 Speaker 9: that's really how we're seeing clients use these private credit strategies. 856 00:42:06,280 --> 00:42:09,000 Speaker 5: In the pastime. How I've interacted with prime services is 857 00:42:09,520 --> 00:42:12,840 Speaker 5: you know, I've got some trader on Morgan Stanley's equity 858 00:42:12,920 --> 00:42:14,759 Speaker 5: or bond desk, and she has a great three or 859 00:42:14,800 --> 00:42:17,960 Speaker 5: four years and she takes that track record and says, 860 00:42:18,040 --> 00:42:20,040 Speaker 5: calls you up and say, go raise me a billion dollars. 861 00:42:20,040 --> 00:42:21,319 Speaker 5: There's so how much money you can raise. I want 862 00:42:21,320 --> 00:42:23,120 Speaker 5: to go out on my own. Does that happen anymore? 863 00:42:24,200 --> 00:42:27,920 Speaker 9: Well, maybe not as easy as you describe, but certainly 864 00:42:28,040 --> 00:42:30,360 Speaker 9: one of the services that we do provide our clients 865 00:42:30,480 --> 00:42:33,480 Speaker 9: is what's called capital introductions, So we help our hedge 866 00:42:33,520 --> 00:42:37,200 Speaker 9: fund and other alternative asset management clients meet potential investors 867 00:42:37,320 --> 00:42:40,040 Speaker 9: to raise capital. So that is certainly something that we do. 868 00:42:40,520 --> 00:42:43,400 Speaker 9: We also work with our clients to structure different financing 869 00:42:43,520 --> 00:42:48,320 Speaker 9: arrangements and to facilitate any type of securities lending activity 870 00:42:48,360 --> 00:42:50,320 Speaker 9: if they have a shortening component to their strategy. 871 00:42:50,920 --> 00:42:51,840 Speaker 3: What else are you. 872 00:42:51,880 --> 00:42:53,560 Speaker 2: Guys talking about that we don't know about yet that 873 00:42:53,760 --> 00:42:55,759 Speaker 2: like the clients are saying, like, this is a really 874 00:42:55,800 --> 00:42:58,239 Speaker 2: cool alternative that we have to start talking about in 875 00:42:58,320 --> 00:42:58,960 Speaker 2: a different way. 876 00:43:00,200 --> 00:43:02,080 Speaker 7: Question a few things. 877 00:43:02,120 --> 00:43:04,080 Speaker 9: I think one of the things that I found interesting 878 00:43:04,120 --> 00:43:06,520 Speaker 9: in my panel yesterday is that they're seeing a lot 879 00:43:06,600 --> 00:43:09,920 Speaker 9: of inflows into an addition to private credit, also to 880 00:43:10,280 --> 00:43:11,279 Speaker 9: PE secondaries. 881 00:43:11,400 --> 00:43:12,080 Speaker 7: I thought that was. 882 00:43:12,200 --> 00:43:15,840 Speaker 9: Interesting, and that they're also starting to see more interest 883 00:43:15,880 --> 00:43:19,880 Speaker 9: and inflows into real estate credit. So I thought that 884 00:43:20,000 --> 00:43:22,680 Speaker 9: those were kind of two interesting things that they highlighted 885 00:43:22,800 --> 00:43:25,479 Speaker 9: that are trends that we certainly plan to continue to watch. 886 00:43:25,880 --> 00:43:26,719 Speaker 3: The secondaries. 887 00:43:26,960 --> 00:43:31,080 Speaker 5: Yeah, I don't so is crypto in your world? So 888 00:43:31,320 --> 00:43:33,320 Speaker 5: we crypto is in our world. 889 00:43:35,560 --> 00:43:38,359 Speaker 9: I do not really deal with crypto, and I will 890 00:43:38,400 --> 00:43:40,080 Speaker 9: be the first to amit. I am not the expert 891 00:43:40,160 --> 00:43:40,600 Speaker 9: on the space. 892 00:43:40,840 --> 00:43:42,520 Speaker 5: Like, I don't know if it's an alternative, it's is 893 00:43:42,560 --> 00:43:44,880 Speaker 5: it a currency, is a commodity? I don't know. 894 00:43:45,360 --> 00:43:47,080 Speaker 2: I think that's kind of the issue, right, Like if 895 00:43:47,080 --> 00:43:49,440 Speaker 2: you're a wealth management like management manager, how do you 896 00:43:49,560 --> 00:43:51,400 Speaker 2: pitch that and what percentage of your portfolio? 897 00:43:51,480 --> 00:43:53,479 Speaker 7: Should that be? Excellent question? 898 00:43:53,840 --> 00:43:54,879 Speaker 5: I No, it knows. 899 00:43:55,000 --> 00:43:56,800 Speaker 9: No one knows, and I think part of that is 900 00:43:56,920 --> 00:43:59,880 Speaker 9: just around No one really fully understands crypto. 901 00:44:00,080 --> 00:44:02,200 Speaker 5: Yeah, I think that's fair to say, except for the 902 00:44:02,480 --> 00:44:04,359 Speaker 5: just the real maybe the grey scale people over there. 903 00:44:04,440 --> 00:44:06,120 Speaker 5: They have the nice big booth this year, so maybe 904 00:44:06,160 --> 00:44:06,320 Speaker 5: they do. 905 00:44:06,560 --> 00:44:09,120 Speaker 3: It's the young kids, Yeah, that's what I was gonna say. 906 00:44:09,600 --> 00:44:12,239 Speaker 7: You got to ask someone that's young. Yeah, they'll understand it, 907 00:44:13,000 --> 00:44:13,359 Speaker 7: all right. 908 00:44:13,320 --> 00:44:15,120 Speaker 5: Lisa, thank you so much for joining us. Really appreciate 909 00:44:15,200 --> 00:44:17,480 Speaker 5: Lisa lew And she's a director of Prime Services at 910 00:44:17,560 --> 00:44:21,320 Speaker 5: b n Y Melon Pershing with life here in Nashville, 911 00:44:21,360 --> 00:44:25,600 Speaker 5: Tennessee at the Gaylord Opperland Resort for the BNY Melon 912 00:44:25,719 --> 00:44:29,759 Speaker 5: Insight get together here, which they do every year, and 913 00:44:29,800 --> 00:44:31,920 Speaker 5: here we're in Nashville, so good stuff. Here we can 914 00:44:32,040 --> 00:44:33,480 Speaker 5: talking to a lot of smart people about the wealth 915 00:44:33,560 --> 00:44:35,319 Speaker 5: management business, learning a lot as well. 916 00:44:35,480 --> 00:44:36,799 Speaker 7: I have to say I did learn a lot. 917 00:44:37,040 --> 00:44:37,480 Speaker 5: Yeah, I know. 918 00:44:37,680 --> 00:44:40,359 Speaker 3: I don't think I really understood what like pershing did 919 00:44:40,440 --> 00:44:40,600 Speaker 3: it be? 920 00:44:40,680 --> 00:44:43,480 Speaker 2: And why Melon and how instrumental it is to the 921 00:44:43,560 --> 00:44:45,200 Speaker 2: functioning of like my wealth manager. 922 00:44:45,280 --> 00:44:47,400 Speaker 5: Yeah. So the next time you're on Wall Street, go 923 00:44:47,520 --> 00:44:50,440 Speaker 5: to number one Wall Street on the corner. That's the 924 00:44:50,640 --> 00:44:54,880 Speaker 5: original site of the Bank of New York. Alexander Hamilton. 925 00:44:55,320 --> 00:44:55,800 Speaker 5: Good stuff. 926 00:44:56,040 --> 00:45:00,560 Speaker 1: This is the Bloomberg Intelligence podcast, available on apples, Spotify, 927 00:45:00,760 --> 00:45:03,920 Speaker 1: and anywhere else you get your podcasts. Listen live each 928 00:45:03,960 --> 00:45:07,120 Speaker 1: weekday ten am to noon Eastern on Bloomberg dot Com, 929 00:45:07,480 --> 00:45:10,839 Speaker 1: the iHeartRadio app, tune In, and the Bloomberg Business app. 930 00:45:10,960 --> 00:45:13,960 Speaker 1: You can also watch us live every weekday on YouTube 931 00:45:14,200 --> 00:45:16,000 Speaker 1: and always on the Bloomberg terminal