For Professional Clients only.
As a group, how have you been boosting your investment capabilities, including taking advantage of technological advances in areas like AI?
Artificial intelligence (AI) is fundamentally changing the way we operate. Our enterprise AI platform Eliza, which is available to every employee, is designed to enhance client services and company operations by helping to streamline workflows, find information faster and foster innovation. We have solutions in production that help with predictive analytics, automation and anomaly detection, among other things.
Our portfolio analysis tool PinPoint, available to clients in the UK and Europe, analyses underlying portfolio holdings to identify strengths, weaknesses, and where potential opportunities and risks lie. Insights from the analysis help clients make informed investment decisions to build more resilient and refined portfolios, taking into consideration their investment objectives, risk appetite and time horizon.
What do you see as the big opportunities and risks for investors in 2026? How are you responding to these in a particular strategy?
We see a number of investment opportunities we believe are currently being underappreciated by the market. First, the benefits of the recently enacted One Big Beautiful Bill Act (OBBBA). In our view, it will be more than just tax benefits and corporate incentives, it will likely spur massive investment in manufacturing and production across the US. We believe this will benefit a number of sectors, including healthcare, materials, energy, industrials and financials. In addition, deregulation, especially within the finanical sector, is gaining momentum and has already led to increased M&A activity. Should it continue as we believe it will, the corporate and financial market landscape could look dramatically different in 2026 compared with the proceeding 20 years. Finally, the broadening out of AI adoption to non-tech sectors will likely lead to greater efficiencies and margin improvement with many value-oriented sectors feeling the benefits.
These opportunities don't come without risk, however. Among them is US monetary policy and, more specifically, a potential misalignment of the market's expectations for lower interest rates with how aggressive the US Federal Reserve can be given persistent inflation. There are also concerns that a lot of the "good news" is priced into the markets given valuations continue to trend near the higher end of theirhistorical range. We remain confident in our abilities as active managers to navigate these risks and to deliver attractive absolute and relative returns to our clients.
What are your priorities as an asset manager for the year ahead?
BNY is a global top 10 investment manager by assets under management, touching 20% of the world's investable assets every day. We focus on being more for our clients by providing investment solutions for all market conditions. This year, for example, we launched the BNY Adaptive Risk Overlay fund, a tail-hedging solution managing portfolio risk during times of increased uncertainty, offering daily liquidity.
Looking to the year ahead, our priority is to continue serving our clients, who are looking for operational efficiencies. Investors want solutions, not only investment selection. In addition to smart portfolio construction and diversification, investors want an ‘easy button' to implement portfolio management and desire a one-stop-shopping experience for advisers and their end clients.
For Professional Clients only. Any views and opinions are those of the investment manager, unless otherwise noted. This is not investment research or a research recommendation for regulatory purposes.
Doc ID: 2844600 Expiry: Feb 18, 2026
