Thread regarding Bank of New York Mellon Corp. layoffs

BNYM is just being a 21st Century Corporation, Layoffs were long overdue

In reality, BNYM should have reduced headcount long ago. Jonn Bogle told us in the 70s that throwing darts at a dartboard would get you returns that beat 80% of actively managed portfolios, and then went on to prove it. The investment acumen of BNY Mellon is not only less than spectacular, it's been downright terrible. Not only has it failed to deliver clients profits, it's consistently failed to deliver on its basic promise of superior investor performance, and the average portfolio gets handily beaten by Vanguard and Fidelity Indexing time and time again merely by virtue of tax savings in the right vehicles as well as low expense ratios compared to BNYM's front end, deferred, and level loads. Anyone with a zero trade fee Robin Hood account with free investment tools can accomplish that.

The value of BNYM's employees to the millennial and Gen Z first time investor? Not only zero, it's actually negative. The investment tools that Intuit cross sells them via Mint.com when they file their taxes via TurboTax online are more valuable. Low expense fees and stuffing as much as they can into into a Roth or tax avoidance vehicle is the name of the game. BNYM's fund offerings are just awful awful awful, and no one informed should be investing in them at all.

How bad is it? 91% of BNYM funds have underperform their funds since inception.

0% of funds have outperformed their benchmark funds since inception consistently enough to give 95% confidence that outperformance will persist.

For wealthier clients in asset management? Liability protection, Trusts, yes, it's useful, but 10% of the superstars drive 95% of the business, and everyone else is just window dressing. The company doesn't really need you to make the numbers. Honestly, clients would be better served by self-serve web software, but they're so rich they can't be bothered. Even better? Just toss everything into a Fidelity or Vanguard Target Retirement Fund which automatically rebalances your portfolio and forget it. You'll almost certainly do better than supporting someone's paycheck at BNYM.

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Post ID: @OP+XapBWEk

5 replies (most recent on top)

John Bogle died earlier today. It doesn't hurt to pay a little respect.

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Post ID: @wtn+XapBWEk

The OP shows their ignorance when failing to understand that BNY Mellon was not an investment management firm, it's an Investment services firm with a lackluster asset management arm. In fact, the bread and butter of The Bank of New York Mellon Corporation is to act as the back office provider for a variety of financial transactions that impact each and every person who uses banking or investment services. Those investment funds you speak about constitute a negligible amount of revenue/profits that they amount to a rounding error on the financial statements of the company as a whole.

In light of Mr. Bogle's contributions to the little guy, please don't associate Mr. Bogle with The Bank of New York Mellon Corporation. Why would you invoke a man of honor and integrity with one who relishes in dishonesty and psychopathic tendencies?

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Post ID: @iwh+XapBWEk

RIP John Bogle.

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Post ID: @jba+XapBWEk

Sounds like a troll for Fisher Investments

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Post ID: @mxd+XapBWEk

Where are those percentages you list published? or do you have internal sources?

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Post ID: @lhj+XapBWEk

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