BNY Mellon Asset Manager Helps Pension Funds Develop Strategies For Volatile Markets

BOSTON, September 4, 2007 — Standish Mellon Asset Management, an investment subsidiary of The Bank of New York Mellon Corporation, has created a Product Solutions Group (PSG), which has been formed to develop liability driven investment solutions for pension funds.

The group will utilize four members of the BNY Mellon Pension Services group, which includes two actuaries. The group has created a liability index and other tools that help pension plans monitor the impact of volatility in the equity and fixed income markets. PSG will combine this expertise with Standish Mellon's long history of managing fixed income products, including long-duration bond products that are designed to match the liability durations of typical U.S. pension plans.

"Liability driven investing can help pension fund managers protect themselves against a simultaneous decline in their assets just as their liabilities are increasing," said Peter Austin, managing director of PSG and who also serves as executive director of BNY Mellon Pension Services. "We saw this happen in the early part of this decade when the equity markets and interest rates fell in tandem. Lower interest rates increase the liabilities of pension plan."

"We have been helping pension plans protect themselves against market volatility since the late 1970s and have more than $25 billion in liability driven assets under management," said Mitchell E. Harris, chairman and chief executive officer of Standish Mellon. "Now, we have enhanced our resources and can draw on the expertise of pension specialists who can identify the liability exposure of corporate pension plans. We can match this expertise with a wide range of solutions encompassing duration extension strategies to absolute return, across both passive and active segments."

With more than $160 billion in assets under management, Standish Mellon provides investment solutions for a wide variety of sophisticated investors across a broad spectrum of fixed income capabilities. These include absolute return strategies, high income/high yield, emerging market debt, global fixed income, core/core plus, municipal/tax sensitive, beta strategies, short duration and stable value strategies. Headquartered in Boston, with offices in Pittsburgh and San Francisco, Standish Mellon is one of 19 investment subsidiaries that comprise the BNY Mellon Asset Management business.

The Bank of New York Mellon Corporation is a global financial services company focused on helping clients manage and move their financial assets, operating in 37 countries and serving more than 100 markets. The company is a leading provider of financial services for institutions, corporations and high-net-worth individuals, providing superior asset management and wealth management, asset servicing, issuer services and treasury services through a worldwide client-focused team. It has more than $20 trillion in assets under custody and administration and more than $1 trillion in assets under management. Additional information is available at http://www.bnymellon.com/.