In this continuing series, we talk to BNY Pershing about the work it does with EAMs in Singapore and other financial centres in the region. 

This news service is continuing to track how banks and other financial services firms serve Asia’s external asset managers, with a particular focus on Singapore, but also other centres such as Hong Kong. (See previous articles here, here, here and here.)

These articles come ahead of our scheduled WealthBriefingAsia EAM Awards 2025, taking place on 16 October, in Singapore. Nominations for entries are open.

In this article, we talked to the firm about what it does and its views about the sector.
 

Please explain your EAM offering
BNY Pershing offers a wealth services platform to external asset managers and advisory firms across the region. This platform provides a range of services including execution and custody, which allows them to provide access to their clients to a number of financial assets and markets, helping them help more people.  

BNY Pershing has a number of longstanding client relationships across the region, doing business for more than 20 years. We also support a number of innovative firms globally. (BNY Pershing gave the case of its support for US-headquartered Arta Wealth Management’s public launch in Singapore, in October 2024. Arta uses Pershing to support its clients across both its US and international client base.)

How important is the EAM business line to the firm in general, for example, for revenue growth, etc?
BNY Pershing is seeing significant growth both internationally and within Asia Pacific and we expect this to continue to benefit the industry and our business.

When dealing with EAMs, what are the main tasks and forms of support they ask for the most and why, in your experience? 
Most queries are product-based in nature, inquiring about different assets and markets available via the platform (structured, alternatives, funds, fixed income or traditional equities) or different reporting and analytical capabilities. BNY Pershing has a professional and an investor portal, the latter which can be white labelled and offered directly to the advisors’ UHNW clients. 

How important has the rise of Singapore-based Variable Capital Companies (VCCs) been in driving what EAMs do?
We’ve certainly seen the rise of VCCs in driving what EAMs do, attracting Southeast Asian investors’ capital – particularly the HNW/UHNW segment. For BNY, VCCs focused on alternative investments have been an important area within BNY’s Asset Servicing Business, where we can provide a full suite of fund administration and custody solutions today.

Interestingly over the last nine to 12 months we’ve also seen a shift in VCC interest from regional EAMs to global EAMs targeting Southeast Asian-based investor capital, using VCCs for access funds. More broadly we see the rise of VCCs as a driver of change and innovation in the funds industry across the region, from the launch of the Hong Kong LP structure to some of the recent announcements from the [Hong Kong] Securities and Futures Commission relating to alternative Hong Kong OFCs [open-ended fund companies], amongst others.

Regulatory issues remain important, and Singapore is of course no exception, along with Southeast Asia more generally. Are there topics that are particularly front of mind at the moment?
We’ve certainly seen an increased focus on resiliency, client asset safety, and transparency over the years. Resiliency is core to our commercial business model, and our EAM clients benefit from the same resiliency being used to service most of the largest institutions in the world. 

We have heavily invested in our core technology stack, modernising our infrastructure, and deploying active data centres. We are also market leading in leveraging AI/ML tools with one practical example being anomaly detection in our transaction and messaging flows. At times, this has allowed us to identify and escalate infrastructure issues or cybersecurity threats originating from outside of our organisation directly to our clients allowing them to mitigate the impact.

We also see that several markets are actively encouraging diversification and globalising their investments to increase retirement income and returns, in part to combat ageing populations. This includes a move to self-directed portfolios with a greater penetration and reliance on financial advice.

How is digital technology shaping the sort of custody services you provide, for example affecting its cost, range of service, etc?
Depth, quality, and sophistication of product capabilities is increasingly important, and a unique competitive advantage across the BNY group which includes the largest global custodian, the largest agent lender, the largest US clearing broker dealer, and access to a wide range of assets.

We provide our clients with unique access to this ability to scale, innovate, and deliver to their client base. One example specific to EAMs and wealth management is the additional portfolio yield that can be generated by participating in a fully-paid securities lending programme. We provide EAMs with direct visibility on the potential revenue that a client’s asset portfolio could yield if they participated in securities lending so that they can drive meaningful client conversations. 

Another example might be our algorithm [algo]-based fixed income portfolio construction, optimisation, and trading solution – BondWise. It helps advisors construct and optimise client portfolios while aggregating liquidity.   

Finally, a last example might be our “Money in Motion” analytics screen which allows advisors to monitor and identify client asset flows quickly across their client base. Not all products and services are offered in all countries.