Mellon

Mellon executes tax-loss harvesting inside BNY's custody environment, where many institutional portfolios already reside. That eliminates the need to transfer tax lots to an overlay manager and reconciles gains and losses on the same books as the core portfolio. The firm therefore avoids the basis-tracking errors that can arise when a third-party provider operates one step removed from the custodian.

Mellon Investments Corporation is a wholly owned subsidiary of BNY, functioning as its dedicated index management and tax-aware investing division. It sits alongside BNY's other asset-management affiliates — including Insight Investment and Newton Investment Management — but operates with a distinct product set focused on passive replication and direct indexing, not active fundamental management.

Mellon's public-facing materials emphasize index management, custom direct indexing, and passive replication. It frames passive investing as requiring an active operational mindset — around implementation, tax management, and client customization — rather than active security selection. Its 2026 research flags structural themes that inform portfolio construction, not stock-picking calls.

Mellon serves institutional investors — pension funds, endowments, foundations, and intermediaries — that require customized index exposures at scale. Its BNY Precision Direct Indexing platform is also available to wealth managers and advisors seeking tax-optimized separately managed accounts that mirror broad-market benchmarks.

Mellon builds its direct-indexing capability on top of BNY's securities-servicing infrastructure, using the bank's custody data and trade-execution network. The in-house technology focuses on tax-lot optimization, client-specified screens, and daily tax-loss harvesting cycles, rather than licensing a third-party direct-indexing engine.