The Markets June 24, 2011

Money Managers See Improved Year in 2010

A report from Strategic Insight indicates the 19 money managers with publicly held equity managed a total of $7.8 trillion at year-end 2010, up 10% from 2009.
Reported by

The 10% increase generated aggregate revenues of $34 billion. As financial markets recovered from the lows of March 2009, average assets under management for full year 2010 rose 42% from 2009 levels, leading to higher fee revenue for 18 of the 19 managers included in the annual study.

Operating expenses rose 25% in 2010, as companies once again began to invest in personnel and technology. However, these higher costs were eclipsed by a 35% increase in operating revenue, leading to an aggregate 4% increase in pre-tax operating margins.

The report says the continuing focus on fees (including the industry-wide transition to lowest-fee share classes), costs for U.S. and global distribution, and investments in technology, compliance, and talent continue to challenge investment managers. A weakening stock market and persistent near-zero short term interest rates could pressure many investment management profits and margins.  

Strategic Insight research clients can access the full report at http://www.sionline.com/research/subscriber_insights/789.pdf.

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Deals & People June 23, 2011

Mellon Announces Leadership Appointments

Rob Ferguson has been named head of global securities lending at CIBC Mellon, Robert Chiuch has been named managing director, and Phil Zywot had been named head of trading. 
Reported by

Ferguson will take on sole responsibility for leading CIBC Mellon’s capital markets team. He has 21 years of experience in securities lending and joined CIBC Mellon at the company’s inception in 1996. He earned his honors degree in economics from York University.   

Chiuch, who previously served as co-head of global securities lending at CIBC Mellon, will act as managing director of US equity and corporate securities finance at CIBC Mellon’s parent company BNY Mellon.    

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Zywot will manage CIBC Mellon’s trading desk. He has 20 years of financial industry experience, including 15 years in securities lending, and joined CIBC Mellon in 2004. Zywot holds an honors degree in economics from the University of Toronto, as well as a derivatives market specialist (DMS) designation from the Canadian Securities Institute.  He is also a certified financial planner (CFP).   

“Rob and Phil have long demonstrated outstanding leadership in helping to build a world-leading securities lending operation that continues to win praise for outstanding service and execution,” said Tom Monahan, president and chief executive officer.“Robert Chiuch’s new role as a senior leader within BNY Mellon’s securities lending operation also positions us well to further strengthen our companies’ partnership as we work to support clients around the world.  I have no doubt that all three will excel in their new roles.”

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