Vicary Graham, President – New England, BNY Wealth
Invest: spoke to Vicary Graham, president of the New England region at BNY Wealth, to discuss the firm’s commitment to tax efficiency, ensuring that second and third generations have the tools and resources they need to be successful, and its commitment to helping prepare the next generation as they move into investment decision-making role.
What have been the highlights and key achievements of BNY Wealth in the region in the past year?
For us, it’s been a really exciting year because on a firm level – we just celebrated our 240th anniversary. We were the first bank in the country, founded by Alexander Hamilton. Upon his demise, which everyone knows from the musical and history, we were the first trust for his widow, Eliza Hamilton. So, the 240 years of history is something we’re very proud of. Mellon Bank, which also merged with us, is 155 years old. Another key component of our growth here in Boston is our merger with Mellon Bank and the Boston Safe Deposit and Trust Company, which was owned by the Boston Company 149 years ago. All that to say, the firm has enjoyed a long, storied career in terms of innovation, resiliency, and all-around wealth services and investment services that we’re very proud of. Here in New England, BNY Wealth had a successful year in terms of growth, which was great. As we all know, this is the epicenter for private equity, fintech, cyber, medical, and academia, making it a great location for firms like ours where the best minds and opportunities are growing. From a liquidity standpoint, individuals selling their companies and moving in new directions made it a very strong year. Despite some concerns with bank failures last year, we provided assistance with our safety and soundness. As we head into this year and next, we’re excited about the opportunities that the firm has to bring forward.
How does BNY Wealth enhance its client relationships and service offerings within the region?
On the wealth side, we’re always bringing the best products, capabilities, and services to bear. A lot of that has to do with the environment, economics, and what may be financially on people’s minds. Since we’re a client-centric business, it’s certainly varied. First and foremost, we have the baby boom transition underway. Over the next decade, $10 trillion to $20 trillion across the country will transition to the second and third generations. When you put that in relation to the entire U.S. economy at $27 trillion, it’s a massive change in wealth. Understanding the future needs of dynamic families, which may include many generations and people who may or may not be related but operate as a unit, brings opportunities to work with families in new ways to achieve their goals. We approach it in a disciplined way, helping families and institutions work in a tax-efficient manner, starting with a great investment plan at the center. Families and family offices want a solid investment plan, beginning with an investment policy statement to stay on course and maintain transparency regarding goals. Secondly, focusing on tax efficiency is crucial since our clients are extremely tax-sensitive. Utilizing tax-managed equity or tax-managed fixed-income solutions minimizes taxes that erode wealth over time. We study clients’ balance sheets to determine the best borrowing environments and options. Additionally, we assess cash flow needs to drive long-term growth while protecting long-term wealth through a solid plan and using trust capabilities and fiduciary options. Ultimately, it’s about retaining wealth for as long as possible and achieving the ever-changing missions and visions that families have.
How is BNY Wealth involved in the communities it serves, and what are some initiatives or partnerships that have been launched?
We’re fortunate with our heritage here to have a great base. New England is one of BNY Wealth’s largest employee hubs, which means we’re involved in boards, civic organizations, and philanthropic volunteerism with our colleagues, clients, and community partners across the region. Our involvement ranges from board memberships and key initiatives with chambers to volunteerism on key initiatives. We’re proud of being very active in the community, and our diverse organizational structure allows us to engage beyond just Boston.
One of my favorite organizations is the Greater Boston Food Bank, which I was lucky enough to chair for several years when the new facility was built. It cuts across every age, wealth bracket, and city and town throughout the region, making it one of our oldest and longest partnerships. Other notable initiatives include the Boys and Girls Club of Boston and the Greater Boston Chamber of Commerce. However, the Greater Boston Food Bank stands out for me due to its wide-reaching impact across Massachusetts, serving both youth and families.
How is BNY Wealth promoting diversity, equity, and inclusion within its organization and among team members?
This is a very important hallmark for the firm. Powering our culture, growing the business, and bringing the best of the firm to our clients and prospects starts with having a diverse workforce. We’re proud to say that at BNY Wealth, more than half of our team are women. We understand that to serve clients with multiple generations and different backgrounds, our workforce needs to reflect that diversity. Our regions have various organizational groups internally, ranging from gatherings to initiatives. We regularly assess our workforce to ensure we’re promoting and developing the best people. Nationally and globally, we’ve hired over 1,000 interns as part of a structured program to foster a changing group of new hires. This commitment starts at the top with BNY’s CEO, Robin Vince, and Global Head of BNY Wealth, Catherine Keating, and involves all senior leaders to ensure diversity of thought internally and appeal to our stakeholders externally.
What is the firm’s updated investment outlook, and what are its implications for the clients you serve in New England?
Right now, a couple of things have been in the headlines, notably from a political election standpoint. History shows that markets generally perform well during an election cycle. Despite potential volatility, working with a strong advisor is crucial during these times. We feel that market opportunities for the rest of the year are very strong. We’re seeing some of the highest S&P results and the best solutions from a tax-managed standpoint. The equity market has shifted, with more private companies than ever before. This shift highlights the importance of having expert guidance to evaluate and assess investments. Additionally, only 30% of loans are made by traditional banks, with 70% by large investment and asset management firms. Therefore, it’s essential to work with expert investment advisors to access these opportunities. With the decline of pension funds, individuals must manage their own retirement plans. Starting in your 20s, mid-level in your 40s, or nearing retirement, having good guidance is crucial. The retail investment market is growing rapidly, with $55 trillion, double the institutional market. Working with strong investors and advisors is essential for individuals responsible for their retirement. Lastly, involving second and third generations earlier in the wealth management process is crucial, especially for those who have created the wealth and want to ensure its retention.
Are you seeing more demand for eco-conscious or environmentally friendly investments, and what is your commitment to that?
Responsible investing is a critical component for many families, foundations, and the next generation. Some families prioritize specific responsible investment patterns, sometimes even viewing it as philanthropy. Our approach is tailored to each family’s vision and mission; we assess environmental, social, or political opportunities and determine their short and long-term benefits.
What are some innovative wealth planning strategies being employed to meet the needs of high-net-worth individuals and families?
Our strategies range from tax-efficient management to utilizing tools to assess different scenarios for families and organizations. We excel in tax-managed fixed-income portfolios, a complex area with over a million types of bonds. From an overall planning perspective, we use more tools today to educate and evaluate risk tolerances. Cybersecurity is of significant interest to families of all sizes. We provide cybersecurity training, not just for organizations but also for families, to protect against fraudsters. Financial literacy is another critical focus. Lastly, artificial intelligence (AI) is an area where we see immense potential. The impact of AI in financial services is expected to be larger than the Internet, and we are carefully developing our strategies around this technology.
What are some future opportunities for growth and expansion within the New England market for BNY Wealth?
We see several directions for growth. One is working with individuals experiencing a liquidity event and assessing new opportunities. Clients and organizations seeking a second look to evaluate different portfolio scenarios are another area. Our family office and virtual family office space is growing. These families seek capabilities in the larger institutional market. Additionally, we have a strong endowment and foundation client base in New England and elsewhere, which intertwines with family foundations. We are integrating our organizational structure to bring the best services and capabilities to our clients across wealth, institutional, and retail spaces.
What is BNY Wealth’s strategic vision for the New England region over the next five years?
Our strategic vision is all about growth, providing the best capabilities for families and their foundations, and ensuring strong investment plans. Engaging families in decision making and understanding tax implications and cash flow needs is crucial. With potential tax changes at the state and federal level, utilizing private banking capabilities and having an institutional approach to managing family wealth is essential. Each family is different, and we’re excited to develop and grow our capabilities across New England. Being a top-of-mind partner, employer, and philanthropic organization is key to our vision for the future.
