Analytical Insights - Q3 2015

Analytical Insights is a quarterly publication providing clients with investment information that can be used in the process of monitoring global assets.

A Message from Debra Baker

Managing Director, Head of Global Risk Solutions
BNY Mellon

Market indexes are frequently used by institutional investors as an important aspect of the investment allocation and performance evaluation process. A large part of the industry is currently facing the challenge of how to deal with the increasing cost for this data.

In response, The Spaulding Group, a performance measurement service firm and the publisher of The Journal of Performance Measurement, announced the launch of the "Custodian Guidelines for Transparency in Benchmark Cost" an initiative with BNY Mellon and other large custodians.

The "Guidelines" were developed with the goal to improve transparency on embedded fees for benchmark data, and enable investors to make informed decisions by understanding the details behind the fees they are paying.

As a service provider, BNY Mellon is trying to be as transparent as we can on the costs and limitations associated with our client’s benchmark choices. We hope that over time that you will become more aware of the market data environment and the cost impacts of your decisions, ultimately leading to more efficient index production and distribution across the industry.

I want to share with you a video, featuring Frances Barney, Head of Global Risk Solutions Consulting – Americas, and David Spaulding, CEO and Founder, The Spaulding Group, discussing the "Custodian Guidelines for Transparency in Benchmark Cost", and how the rising cost of index data is affecting the industry.


Best regards,

Debra A. Baker's Signature
Debra A. Baker