JERSEY CITY, N.J., December 8, 2008 — Pershing Advisor Solutions LLC, a subsidiary of The Bank of New York Mellon Corporation, released an independent study today with InvestmentNews and HNW, Inc., entitled A View From the Top 2008: Trends in Managing Human Capital.

The study identifies trends in human capital management and offers critical insights into how registered investment advisory (RIA) firms can better attract, retain and develop talented professionals. The report also provides RIAs with benchmarks against Pershing Advisor Solutions' previous human capital study with HNW, Inc., published in 2006. Key findings from the study include:

• Recruiting Talent has Become as Challenging as Finding New Clients - Attracting, retaining and developing talent should be high priorities for any advisory firm that wishes to enhance its long-term value. Most respondents (60%) of this year's study said that finding qualified professionals was just as challenging as finding new clients. This is a marked difference from 2006 when finding new clients was considered far more difficult than recruiting talented advisors or managing employees. Many firms also report that retaining employees has grown as a key challenge (33% in 2008 versus 25% in 2006). The majority (63%) of firms reported they see a shortage of talent within the industry and 69% percent consider relationship managers the hardest job to fill this year, followed by operations managers (61%.) The toughest job to fill in 2006, portfolio managers, is considered one of the easiest in 2008;
   
• Best Practices for Recruiting Talent Continue to Evolve - The study shows a firm's compensation package is increasingly less effective at recruiting talent than are intangible lifestyle factors like corporate culture, work/life balances and public reputation. The study found that only 45% of firms consider base salary an effective recruiting tool in 2008, compared with 60% in 2006. In contrast, 77% consider a firm's reputation the top recruiting tool, versus 69% who previously held that view;
   
• Firms are Increasingly Focusing on Employee Career Development - All RIA firms need to effectively nurture the ongoing career development of their key employees with a formalized reporting structure and guidance from a more experienced employee. The study found 80% of firms are now giving employees periodic performance reviews, compared with 72% of firms in 2006. 64% say they place as high an emphasis on employee satisfaction as they do on client satisfaction. Only 40% held that view in 2006; and
   
• Client Segmentation Is Critical to Effective Time Management - Time management topped the list of challenges reported by RIA firms, replacing recruiting. The time crunch for all firms is clearly growing. 86% cite it as a top challenge this year, compared with 68% in 2006. A majority of firms (57%) are addressing this challenge by segmenting their clients so that they can target discrete groups with appropriate services, staff and differentiated pricing levels. Client segmentation has increased since the 2006 study, when only about half of all firms segmented their clients. Focusing firm resources on particular client niches, as opposed to a one-size-fits-all strategy, is clearly a response to time constraints and the growing pressures on firm profitability. Firms are also increasingly outsourcing labor-intensive tasks such as estate management and tax preparation.

Mark Tibergien, chief executive officer of Pershing Advisor Solutions, said, "Human capital management is the most critical issue facing advisory firms. RIA firms need talented, knowledgeable and energetic professionals in business development, marketing, portfolio management, client relationship management, service and operations to grow their practices into larger businesses. Nurturing the talent that already exists within a firm is crucial for maintaining success and for achieving even greater success in the future."

Stacey Haefele, president of HNW, Inc., added, "Profitability concerns among advisory firms have skyrocketed since 2006. Since this study was conducted prior to some of the steepest declines and volatility in the markets, we can safely surmise that client portfolio losses will only serve to heighten profitability concerns. Firms need to place a higher premium on maximizing human capital and work at peak efficiency in order to succeed in the current market environment."

A View From the Top 2008: Trends in Managing Human Capital is a component of Pershing's Ideas Without LimitsTM thought-leadership program. The study was commissioned by Pershing Advisor Solutions LLC and independently executed by HNW, Inc., and InvestmentNews. The data gathered represent responses from 308 participants who submitted answers to a 72-question online survey fielded May 21 to June 20, 2008. The research uses quantitative data to determine the correlation between certain practices related primarily to the hiring and retention of employees and various success criteria. Respondents were principals of fee-based or dually registered practices with a minimum of $50 million in assets under management.

Pershing Advisor Solutions LLC (member FINRA/SIPC) is an affiliate of Pershing LLC and a leading provider of financial business solutions to independent, fee-based registered investment advisors and dually registered advisors working in conjunction with many of Pershing LLC's introducing broker-dealer customers. Pershing LLC (member FINRA/NYSE/SIPC), a subsidiary of The Bank of New York Mellon Corporation, is committed to delivering dependable operational support, robust trading services, flexible technology, an expansive array of investment solutions, practice management support and service excellence. Through an innovative custody platform, Pershing Advisor Solutions delivers superior expertise and scalable and customizable solutions to help its customers manage and grow their fee-based businesses. Additional information is available at www.pershingadvisorsolutions.com.

The Bank of New York Mellon Corporation is a global financial services company focused on helping clients manage and service their financial assets, operating in 34 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, clearing services, and treasury services through a worldwide client-focused team. It has $22.4 trillion in assets under custody and administration, approximately $1.1 trillion in assets under management and services approximately $12 trillion in outstanding debt. Additional information is available at www.bnymellon.com.