BNY Mellon Wealth Management, a unit of the Bank of New York Corp., is the 15th largest wealth manager in the world with about $162 billion in assets under management. In 2004, the firm completed the purchase of Providence Group Investment Advisory Co. in an effort to expand into Rhode Island. Donald R. Quattrucci is the regional president in Rhode Island, coming to BNY Mellon in 1994 from the Boston Co.’s Capital Markets Group, where he was a currency trader before joining the wealth management group in 1997. He has 22 years of investment-management experience.
PBN: It seems like many financial institutions, even some smaller ones, have a wealth management arm. Is that because of demand or potential profit for the institutions?
QUATTRUCCI: BNY Mellon Wealth Management started more than 200 years ago as a private bank to the wealthy simply because there was a need. Since then wealth management has been serving clients that typically have very complex financial situations requiring solid, comprehensive, professional expertise across a range of areas. As more Americans become wealthy, we know this need will only increase, both here in Rhode Island and around the world.
PBN: How do the wealth-management services offered by an institution such as BNY Mellon differ from some other types of financial advisers?
QUATTRUCCI: Some banks and investment houses with wealth management branches operate on a broker-dealer model. That is, the person advising the client on what product or services to buy is making a profit on that transaction. BNY Mellon Wealth Management is committed to maintaining a clear demarcation between sales and the professional expertise and investment advice we provide to each client. We think it’s important that our firm preserves this distinction.
What also distinguishes us is the comprehensiveness of our professional expertise. We are part of a large organization with more than $1 trillion of assets under management and custody around the world. To oversee this enormous pool of assets, BNY Mellon has a large, highly professional investment staff and a very diverse array of investment vehicles that our portfolio managers can select and combine to suit each client’s particular situation. We find that the wealthy expect both sophisticated, deep, and specialized resources and high-touch, personal attention. Our model is designed to meet both those needs.
PBN: Why did BNY Mellon decide to open an office in Providence?
QUATTRUCCI: BNY Mellon Wealth Management has long been headquartered in Boston and has deep roots in New England, so it was a natural progression for us to open an office here in Providence, too. The Northeast is a very important market for us, and Rhode Island is home to many of our clients already – and to others we’d like to have as clients. These people are very successful executives or entrepreneurs with a great deal of accumulated wealth. They are not only looking for someone to oversee their investments, but also to offer sharp advice on, among other things, estate and retirement planning, philanthropy, succession planning for their business and even advice on preparing the family’s next generation to manage their wealth. And they are looking for a firm that is committed to the community. We have a lot to offer Rhode Island’s wealthiest: the resources and experience to quarterback their planning process in collaboration with the other professionals, such as attorneys and accountants, they rely on to manage their wealth.
PBN: Are your clients nervous about the recent turmoil in the financial markets?
QUATTRUCCI: If a wealth manager doesn’t clearly and consistently explain its investment decisions its clients are more likely to be nervous. That isn’t the case here. We are transparent with clients and they benefited from a number of good calls we made in advance of the current market turbulence.
From the first meeting with a client we talk in detail about his or her goals and dreams and explain our unemotional, long-range approach to managing their wealth. We talk about how we make asset allocation decisions, risk/return expectations and so forth. We explain to the client how our professionals coordinate their recommendations and work in sync with the client’s other advisors, such as an accountant or attorney. With this “A Team” approach to wealth management, a client can understand and trust our recommendations.
In general, people prefer wealth management firms that have proven themselves during past economic downturns. We see that for these clients; our investment “street cred” goes a long way.
PBN: In times like these, how do you make sure that the assets under management are protected?
QUATTRUCCI: BNY Mellon Wealth Management had relatively little exposure to the various investment vehicles behind the credit crunch and our wealth management business is very strong and growing.
Our investment philosophy is pretty basic. Whether you have $10,000 in assets or $100 million, these are key:
• Be clear on your long-term goals
• Talk honestly with your portfolio manager about those goals
• Make sure you understand the risk level of your investments
• Ask questions about anything you don’t understand
• Don’t let fear or emotion drive your investment decisions
• Keep your eye on the long-term; don’t let immediate noise rattle you.
More information about BNY Mellon Wealth Management, a unit of Bank of New York Corp., can be found online at www.bnymellon.com.
