JERSEY CITY, N.J., July 11, 2011 — Pershing LLC, a BNY Mellon company, today announced the availability of a new study, Asset Consolidation: Your Path to Greater Growth and Efficiency. The paper details how investment professionals can potentially double profitability, significantly boost productivity, and uncover opportunities to extend client relationships.
"The fundamentals of retail distribution of investment products and delivery of financial advice are rapidly evolving," said Maura Creekmore, director at Pershing, "Investment professionals who continue to do business via the 'check and app' model should consider carefully evaluating the many advantages of doing business on a consolidated brokerage platform."
Developed with FA Insight, Asset Consolidation: Your Path to Greater Growth and Efficiency is designed to help investment professionals better understand the many advantages of changing from direct business, with fund complexes and annuity providers, to a consolidated brokerage platform. The study investigates several issues around cost savings — maintaining that conducting direct business runs counter to the best practices of today's investment professional and to the best interests of their clients. The report also looks at direct trades as compared to consolidating assets and trading onto a single custodial platform and quantifies the immediate "hard dollar" costs to an investment professional. Additionally, the study examines other issues facing professionals such as cost factors, the longer-term implications related to productivity, operating efficiencies, growth potential, practice value and succession opportunities.
"Too often investment professionals aren't getting a complete picture regarding the advantages of consolidating assets on a brokerage platform which explains why direct trading continues to make up 50% of the dollar volume of trades and 66% of the number of trades made by independent broker-dealers," said Dan Inveen, Principal at FA Insight. "This study is intended to raise awareness of the advantages of asset consolidation and motivate investment professionals to reconsider 'business as usual.'"
According to the study, key benefits of consolidating to a single brokerage platform include:
To download a copy of Asset Consolidation: Your Path to Greater Growth and Efficiency, please visit www.pershing.com.
Pershing LLC (member FINRA/NYSE/SIPC) is a leading global provider of financial business solutions to more than 1,500 institutional and retail financial organizations and independent registered investment advisors who collectively represent more than five million active investors. Located in 21 offices worldwide, Pershing and its affiliates are committed to delivering dependable operational support, robust trading services, flexible technology, an expansive array of investment solutions, practice management support and service excellence. Pershing is a member of every major U.S. securities exchange and its international affiliates are members of the Deutsche Borse, the Irish Stock Exchange and the London Stock Exchange. Pershing LLC is a BNY Mellon company. Additional information is available at www.pershing.com.
BNY Mellon is a global financial services company focused on helping clients manage and service their financial assets, operating in 36 countries and serving more than 100 markets. BNY Mellon is a leading provider of financial services for institutions, corporations and high-net-worth individuals, offering superior investment management and investment services through a worldwide client-focused team. It has $25.5 trillion in assets under custody and administration and $1.2 trillion in assets under management, services $11.9 trillion in outstanding debt and processes global payments averaging $1.7 trillion per day. BNY Mellon is the corporate brand of The Bank of New York Mellon Corporation. Additional information is available at www.bnymellon.com.