June 17 2008 Strategies for Growth and Outperformance Asset Wealth Management Ron O’Hanley Jon Little Dave Lamere Today’s Discussion Global l by wci49656

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									                                           June 17, 2008

Strategies for Growth and Outperformance
Asset & Wealth Management
Ron O’Hanley / Jon Little
Dave Lamere
Today’s Discussion

 Global leader in Asset & Wealth Management

 Performance
                                            AUM $1.1 trillion
                                               As of 3/31/08
 Growth strategies
                                 Wealth Management
 Goals
                                                                         U.S.
                                                    8%
                                                                     Institutional
                             Non-U.S.
                                              25%              40%



                                                27%


                                  Dreyfus



                                                                       BNY MELLON
2008 Investor Conference                                             ASSET MANAGEMENT
                                                                     WEALTH MANAGEMENT
A Global Leader in Asset Management
 BNY Mellon manages more than $1.1 trillion assets under management1

 A global leader…             4th largest global institutional asset manager (P&I,            May 2008) 3

                              9th largest U.S. asset manager (Institutional Investor,    July 2007)2

                              4th largest U.S. subadvisor (P&I,    May 2007)2

                              Top 10 in wealth management in the U.S. (Barron’s/internal analysis,              June 2007)2

                              Largest manager of U.K. discretionary charity funds; 2nd largest U.S. Endowment
                              and Foundation asset manager (U.K source: Charity Times, June 20072. U.S. source: P&I, May 20083)

 …with strong international   $259 billion in assets from non-U.S. clients1
 presence…
                              7th largest asset manager in Europe (Investments & Pensions Europe,           June 2007)2


 …an industry-leading         More than 275 institutional asset management product offerings, covering
 product set…                 virtually all investment styles
                              $69 billion in absolute return and alternative assets1

 …broad client reach…         48% of 50 largest global retirement plans (P&I,            December 2007) 3

                              66% of top 50 U.S. corporate plans (P&I,          January 2008) 3

                              60% of top 50 U.S. public plans (P&I,      January 2008) 3

                              Presence in 15 of the top 25 domestic wealth markets (Barron’s/internal analysis, June 2007)
                                                                                                                               1 As of 3/31/2008.

 …and industry- leading       $73 billion AUM net flows (2007)
                                                                                                        2Rankings based on 2006 year-end data.
                                                                                                        3Rankings based on 2007 year-end data.
 growth                                                                 Please review the disclosures in the Appendix following this presentation.

                                                                                                                          BNY MELLON
2008 Investor Conference                                                                                               ASSET MANAGEMENT
                                                                                                                       WEALTH MANAGEMENT
Multi-Boutique Model Surrounded by World-Class
Distribution and Support
                                                                 Client-driven Sales/Service Channels


                              North                                    U.S. Retail                                                                           BNY Mellon
                            American                                  Intermediary                               International                                 Wealth
                           Institutional                                 & Direct                                                                            Management



                                                   Multi-boutique Investment Management Platform




                                                     BNY Mellon Asset Management Shared Support
                                                     BNY Mellon Asset Management Shared Support
                  Please review the disclosures in the Appendix following this presentation. Mellon Global Alternative Investments (MGAI) and BNY Mellon ARX do not currently offer services in the U.S.

                                                                                                                                                                                                 BNY MELLON
2008 Investor Conference                                                                                                                                                                     ASSET MANAGEMENT
                                                                                                                                                                                             WEALTH MANAGEMENT
 Strong Net Asset Growth


Assets Under Management                                  Our model helps us achieve strong
($ billions)                                             asset growth
1200                                            $1,105    • Focus on investment performance
                                                          • Broad range of investment strategies
1000
                                                          • Subadvise for Wealth Management
                                           R
                                       G
800                                  CA                   • Cross selling from all of BK
                            1   0%
600                $556                                  Strong growth in AUM
                                                          • Averaging > $40B p.a. of net asset flows
400                                                         (2000-2007)
                                                          • Consistent AUM growth (CAGR)
200
                                                             −      1-year         11%
                                                             −      3-year         15%
  0                                                          −      5-year         13%
             12/31/00                          3/31/08       −      7-year         11%

                                                          • 15% U.S. institutional AUM growth in 2007
                                                            relative to 12% growth for competitors (P&I May
                                                            2008)

                                                                                                     BNY MELLON
 2008 Investor Conference                                                                          ASSET MANAGEMENT
                                                                                                   WEALTH MANAGEMENT
   A Broad Array of Clients and Products

                                                  AUM $1.1 trillion
                                                          As of 3/31/08
                              Client                                                                  Product
                                                                                                             U.S.
                     Other                                                                              Fundamental /
            Insurance 5%                                                    Absolute Return           Quantitative Equity
Endowments/    3%                                                                                             8%              Int’l / Global
                                                                              Strategies /
Foundations                                                                                                                   Fundamental
                                                                              Alternatives
    4%                                                                                                                           Equity
                                                                                   6%
                                                                                                                                   12%
Sub-Advised/                                      Mutual Funds/DC
 Wrap/SMA                                              38%
     7%
                                                                            Cash                                                    Index
HNW/Trusts                                                                  32%                                                      14%
   9%



                                                                                                                                Fixed Income
                                                                                                                                    14%

                                                                                          Currency /
                   Defined Benefit/other                                                   Overlay               Asset
                       Benefit Funds                                                         6%                Allocation
                           34%                                                                                     8%

                                  Please review the disclosures in the Appendix following this presentation.

                                                                                                                              BNY MELLON
   2008 Investor Conference                                                                                                 ASSET MANAGEMENT
                                                                                                                            WEALTH MANAGEMENT
Financial Performance with Strong Growth in Margins

                           2007*      1-Year 3-Year

                                           CAGR*                          2007 Highlights

                            2007      1-year 3-year**                     • Non-U.S. revenue 40% of total revenue in
    ($ in millions)
                                                                            4Q07.
   Asset and Wealth
   Management Fees            2,714     27%         25%
                                                                          • 36% growth in non-U.S. revenue:
                                                                              – Europe +33% growth
   Performance fees             171   (56)%            5%
                                                                              – U.K. +44%
   Other fees                  411      18%            7%
                                                                              – Japan + 75%
 Operating Revenue          $3,296     14%           21%                      – Brazil + 63%
 Operating Expense            2,118     13%         15%                   • $76B net new cash / short duration
 Pretax Operating Income*** 1,178      18%          35%                     business in 2007
 AUM (in billions)          $1,044     12%           16%
                                                                          • Continued growth in alternative products
                                                                          • Merger complete, exceeding synergy
 Pretax Operating Margin      36%     +100 bps    +1000 bps
                                                                            targets



                                                 *2007 financials and 1-year CAGR reflect pro forma operating results for BNY Mellon Asset Management.
                                                                                                          **3-year CAGR represents legacy Mellon data.
                                                                                                     ***Pretax Income Excluding Intangible Amortization.


2008 Investor Conference                                                                                                         BNY MELLON
                                                                                                                              ASSET MANAGEMENT
 Strong 3-year Growth Rates

     Pretax earnings growth                        3-year                                                            1-year
      BNY Mellon*                                                         35%                                         18%
      BlackRock                                                                           60%                         18%
      Franklin Resources                                               32%                                                       29%
      T. Rowe                                                    26%                                                         25%
      Alliance Bernstein**                                    23%                                                             26%
      Janus                                                 21%                                                                                       60%
      Legg Mason                                   12%                                                       8%
      Federated                             5%                                                                         20%


     Revenue growth
     BNY Mellon*                                            21%                                                   14%
     BlackRock                                                                            62%                                25%
     Franklin Resources                                        24%                                                            26%
     T. Rowe                                                 22%                                                          22%
     Alliance Bernstein**                                         27%                                                    21%
     Janus                                    7%                                                                         21%
     Legg Mason                                             21%                                               10%
     Federated                                    11%                                                             14%
 Note: Revenue and pretax earnings growth adjusted for non-operating items as disclosed in the financial reports as well as the estimated impact of
 material acquisitions.
 * 2007 vs. 2004 3-year CAGR represents legacy Mellon data
 ** Alliance Bernstein pretax income is calculated on a total corporation level

2008 Investor Conference                                                                                                                     BNY MELLON
                                                                                                                                           ASSET MANAGEMENT
Investment Performance
Percentage of IAM Investment Products Exceeding Benchmark
(periods ending March 31, 2008)


                                                                                                                              95%
                                                                                                      90%
                                                                                                                                          89%
                                                                              83%                                 83%
                                          79%                                                               78%
       76%
                                                                  71%   69%                                                         68%
                                    63%               64%                                       65%                     65%
             59%                                            58%                           59%
                                                                                    56%
                   51%                          54%
                      48%
 45%



                            25%




          1 year                            3 year                              5 year                             10 year
All     Index/Enhanced Index Equity              Active US Equity       Active International Equity          Fixed Incom e                Other

             All BNYM AM institutional products are included, representing $538 billion of AUM. Calculations are equal
                      weighted. Investment performance is gross of fees except for privately offered funds.

2008 Investor Conference                                                                                                  BNY MELLON
                                                                                                                         ASSET MANAGEMENT
  Select Strategy Performance
                                                             1 - Year                                                   3 - Year
                                                                                                          Universe                                             Universe
                                       AUM                   Gross Return                                  Ranking       Gross Return                           Ranking
Product                                ($B)                  (Net return)                                (Percentile)    (Net return)                         (Percentile)
                                                                   5    (N/A)                               23                             (N/A)
Walter Scott Global Equity             $16.7                                                                                      13.7                           30
                                                          -3.3
 MSCI World Index (net)                                                                                                        9.7


Newton Global Equity                      9.0                           9.6   (8.8%)                        12
                                                                                                                                     14.8 (14.0%)                14
 MSCI World Index (net)                                   -3.3                                                                 9.7


Newton Global Bonds                       4.0                                   19.6 (19.1%)                18                 8.6     (8.1%)                    11
 JPM Global Gov’t Bond Index                                                    19.9                                          7.2


TBCAM Midcap Opp. Value                   2.6         -5.1         (-5.9%)                                  17                         (7.0%)                    38
                                                                                                                              8.0
 Russell Midcap Index                              -8.9
                                                                                                                              7.4


TBCAM Dynamic Value                       2.5         -2.8         (-3.5%)                                  22                  10.2 (9.3%)                        7
 Russell 1000 Value Index                         -10.0                                                                      6.0


TBCAM U.S. Large Cap Core                 1.5           -2.0       (-2.7%)                                  39                                                   27
                                                                                                                              7.8        (7.1%)
 S&P 500 Index                                        -5.1
                                                                                                                             5.9

                                                                                        30.2   (29.0%)        4                                                  32
West LB Global Emerging Market            1.4                                                                                                  32.2 (30.9%)
                                                                                 21.3
 MSCI Emerging Markets Index (net)                                                                                                           29.2

Standish Emerging Markets Debt            1.0                                  17.3   (16.8%)             N/A             0 N/A
                                                                                                                                                               N/A
  JPM GBI-EM Broad Diversified Index                                          16.1
                                                                                                                          0 N/A
                                             Please see investment performance disclosures in the Appendix.
                      Percentile ranking based on gross returns from Evestment Alliance universes. Disclosures are in the Appendix.
                       Past performance is not indicative of future returns. If calculated on net performance, rankings may be lower.

  2008 Investor Conference                                                                                                                            BNY MELLON
                                                                                                                                                    ASSET MANAGEMENT
Driving Growth in Our Multi-Boutique Model


               Build on Strategic Imperatives          Leverage Distinctive Capabilities




                                 Expand and
       Continue                  deepen presence      Extend
       international             in U.S. Retail /     multi-discipline
       expansion                 Intermediary         products
                                 market
                                                                       Exploit cross-sell
                                                                      opportunities across
                                                                  The Bank of New York Mellon

       Maintain industry-                                Pursue
                                Attract, develop,
       leading                                          selective
                                motivate and retain
       U.S. institutional                              acquisitions
                                the right people
       presence




2008 Investor Conference                                                               BNY MELLON
                                                                                     ASSET MANAGEMENT
International Expansion Achievements and Actions
                      AUM by Geography                                            Revenue by Geography


U.S.                84%                  74%                   U.S.
                                                                                                           64%
                                                                                  81%
                                                                                                    R
                                  R                                                              CAG
                           27% CAG                                                           38%
Non U.S.                                 26%                                                               36%
                    16%                                        Non U.S.           19%

                   2005                  2007                                     2005                     2007

   Achievements                                                 Actions
   Brazil:
    • Completed acquisition of ARX Capital                            Deepen our footprint and enhance our client service
                                                                      capabilities
   China:
    • 1st QDII Mutual Fund Manager in China
                                                                      Leverage legacy Bank of New York locations
    • Signed JV agreement with Western Securities
    • CSRC (Chinese Securities Regulator) approval for local
                                                                      Expand product line selectively
      Fund Management Company

   UK:                                                                Grow BNY Mellon multi-manager solutions capability
    • 1st full year of Walter Scott & Partners
    • Ranked 5th by net retail sales in Q1 2008

   Europe:
    • Ranked 5th for cross-border European fund sales in
      2007 (Feri)

2008 Investor Conference                                                                                       BNY MELLON
                                                                                                             ASSET MANAGEMENT
U.S. Retail / Intermediary Achievements and Actions
 Achievements                                                  Actions
 Intermediary Distribution                                     Intermediary Distribution
   • Upgraded U.S. wholesaling force                            • Increase focus on major markets and key firms for
                                                                  traditional wholesaling model
   • Built new capability to focus on HNW RIAs/ Multi
     Family Offices                                             • Strengthen capabilities to more effectively serve
                                                                  intermediary home office “gatekeepers”
   • Stabilized declining separately managed account
     business and positioned it for future growth               • Target unique customer segments via customized
                                                                  wholesaling models (e.g., E-Wholesaling)
   • 24% improvement in mutual fund gross sales vs. 2006
     while reducing redemption rates                            • Increase outreach to HNW RIAs/Multi Family Offices
                                                                • Leverage intellectual capital and branding of The Bank
                                                                  of New York Mellon (“Who’s Helping You?”)

 DCIO, Insurance and Rollover: Built one                       DCIO, Insurance and Rollover: Enhance presence
 consolidated market facing Retirement & Insurance markets     within DCIO and VA markets through key mandates/wins

 Retail Direct                                                 Retail Direct
   • Reduced operating expenses while improving                 • Opportunistically improve long-term sales (e.g., Bank of
     redemption rates to 9.7% vs. mutual fund industry            New York Mellon employee offering)
     average of 17.8%
                                                                • Maintain single digit redemption rates through
                                                                  continued high customer service/satisfaction levels

 Product development                                           Product development
   • Strategic venture with Wisdom Tree to launch a range of    • Continue rationalizing existing product set; including
     cash and fixed interest ETFs                                 legacy BNY Hamilton Funds
   • Merged/closed 41 funds                                     • Focus development effort on multi-asset/customized
   • Launched 9 new funds                                         and embedded solution products


2008 Investor Conference                                                                                      BNY MELLON
                                                                                                             ASSET MANAGEMENT
Acquisitions: A Pattern of Successful Integration



      2004                         2005           2006         2007                         2008
                                                                              BNY Mellon Western
                                                                              Fund Management1




      M&A Success                                        Ongoing M&A Focus


           Distinctive institutional skill                 Distribution extension


           Strong acquisition track record                 Add / enhance specialty investment
                                                           capabilities / alternatives
           Model makes us attractive to targets
           and facilitates integration                     Exploit separation of manufacturing
                                                           and distribution


                                                           Developing / Emerging markets

                                                                 1   Joint venture agreement signed November 2007

2008 Investor Conference                                                                       BNY MELLON
                                                                                              ASSET MANAGEMENT
Exploit Cross Sell Opportunities
Cross Sell Overall                                              Cash Management Example

                                                                   Broad and deep investment and credit skills
    Distinctive skill and successful track
    record in cross-selling                                        Market flight to quality that rewards our conservative
                                                                   investment approach
    Merger creates new cross-selling                               Cash product sales throughout The Bank of New
    opportunities                                                  York Mellon (proprietary share of BNY Mellon client
                                                                   cash in MMFs improved from 24% premerger to 33%
                                                                   March, 2008 )
    Next steps
         • Exploit new opportunities for cross sell                Significant cash business beyond MMFs (STIF,
                                                                   Separate Accounts)
                 - All AM products and services to legacy
                   Bank of New York clients                             Institutional Money Market Funds
                                                                    Domestic 40 Act Institutional Money Market
                 - Legacy BNY AM boutiques’ products                  Fund Market Share Data as of 3/31/08*
                   (Ivy, Urdang, Alcentra) to legacy Mellon                                        Total Assets
                   clients globally                                Rank  Manager
                                                                                                       ($B)
         • Develop additional global products                       1    J.P. Morgan                  225,897
           (e.g., Japanese Yen MMF)                                 2    BlackRock                    205,920
                                                                    3    BNY Mellon/Dreyfus           204,785
                                                                    4    Fidelity                     188,768
                                                                    5    Goldman                      188,578
                                                                    6    Federated                    174,065
                                                                         All Others                   905,844
                                                                         Total                       2,093,857

                                                              *Source - iMoneyNet month-end data for 3/08
2008 Investor Conference                                                                                     BNY MELLON
                                                                                                            ASSET MANAGEMENT
BNY Mellon Asset Management Summary
Deliver strong investment performance
 • Institutional goal: 70% exceeding 3-year benchmark (currently 63%), 60% exceeding
   3-year peer median (currently 46%)
 • Mutual fund goal*: 35% of funds rated either 4 or 5 star, Morningstar (currently 23%);
   3-year Lipper at or above 35th percentile (currently 43rd percentile)

Deliver superior client service
 • Institutional: Consistently rank in top quartile of client satisfaction as measured by
   Greenwich Quality Index (GQI)
 • Retail: Consistently rank top ten in client satisfaction as measured by Market Metrics
Continue to exploit global growth opportunities
Medium-term financial goals
 • Revenue growth of 12-14%
 • Pretax profit margin of 36-38% **




      * Excludes short-term funds. Rankings are asset weighted
      ** Excluding intangible amortization

2008 Investor Conference                                                              BNY MELLON
                                                                                    ASSET MANAGEMENT
Dave Lamere
  Leading Wealth Management Franchise
                             2007                      1-Yr. Growth
      Fee Revenue: $632 million                            8%         Unique Characteristics…
Net Int. Revenue $169 million                              3%
                                                                      Client Profile
            Margin : 30%                                    -
                                                                            < $10 M        $10 M - $100 M      $100 M+
  Clients Assets: $170 billion                            10%
                                                                                                                                $170 BILLION
                                                                          $46 BILLION       $56 BILLION      $68 BILLION
                Loans : $4 billion                         5%                                                                   Client assets


          Deposits: $7 billion                            15%
       Employees: 2,240                                               Industry leading client satisfaction
         Excl. Florida & California commercial banks                  •   93% of clients “are highly satisfied +”
                                                                      •   96 % retention rate
  Strategic Markets
  •    Locations in 16 states + London
                                                                      Scalable Business Model
                                                                      •   Distributed sales and team-based service delivery
                                                                      •   Centralized core capabilities
                                                                      •   Unified operations and technology




                                                                      Corporate Synergies Create Unique Platform…



  2008 Investor Conference                                                                                                 BNY MELLON
                                                                                                                         WEALTH MANAGEMENT
Exclusive Client Expertise
Leveraging the best of BK

        Investment                                                                 Wealth and Estate
                                                      1
        Management                          Discovery and Insights                    Planning

  Broad asset class                                                                       224 years of
  expertise of $1.1T            6                                        2               experience in
                              Active
        AUM                                                            Asset         fiduciary, estate and
                            Management                               Allocation
                                                                                         family issues


                                                  Client
                                                CLIENT NAME

  Customized lending                                                                   World’s largest
                                 5
     and deposits          Implementation
                                                                          3            custodian with
      capabilities                                                    Structural       highest quality
                                                                       Analysis
                                                                                          ranking



                                                      4
                                               Asset Location
Private Banking                                                                    Global Custody &
                                                                                     Information
                                                                                     Management

2008 Investor Conference                                                                      BNY MELLON
                                                                                            WEALTH MANAGEMENT
Investing in Distribution
Greater Growth And Productivity


                                                                      2006     1Q08     Growth

    Sales Officers                                                       82     95          16%

    Sales *                                                         $36MM     $55MM         53%

    Productivity / Sales Officers                                   $467MM    $572MM        22%

    Client Assets                                                   $155B     $164B           6%

    Client Deposits                                                 $6.0B     $8.0B         33%

    Client Loans                                                    $3.9B     $4.3B         10%


 * Represents annualized new business revenue.

  Note: All statistics exclude the Florida and California commercial banks
2008 Investor Conference                                                                 BNY MELLON
                                                                                       WEALTH MANAGEMENT
Performance Versus Peers
  Revenue Momentum
  (CAGRs)

  14%                                                                                                                    12%
  12%
                      9%
  10%
                                                                                  7%
   8%
                                     6%                              5%                                     6%
   6%
   4%
   2%
   0%
                           2008 Q1                                        1yr                                     3yr

                                                        BNY Mellon        Peer Group (average)



                                                  Fee Revenue                      Total Revenue                         Pretax Inc.

        CAGRs                             Q1 08      1 y ear    3 y ear         Q1 08   1 y ear   3 y ear        Q1 08          1 y ear

        BNY Mellon PWM                     9%         8%         8%              9%      5%        6%            20%              6%
        Northern Trust PFS                 7%         14%       10%              4%     10%        8%            0%               8%

        Wachovia PB                        9%         2%         13%             4%      3%        13%           11%              6%
        Alliance Bernstein PC             10%         9%         15%            10%      9%        15%           n/a             n/a




2008 Investor Conference                                                                                                         BNY MELLON
                                                                                                                               WEALTH MANAGEMENT
BNY Mellon Wealth Management Summary
Leading Wealth Management franchise with excellent domestic footprint


BNY Mellon created unique client offering and profile


Merger producing revenue and expense synergies


Distribution investments driving growth momentum


Enhancing tri-state opportunities


Maintain excellent client service and retention ratings

Medium-term financial goals

        - Total revenue growth of 9-11%

        - Pretax margin of 33-35% *

  * Excluding intangible amortization
2008 Investor Conference                                            BNY MELLON
                                                                  WEALTH MANAGEMENT

								
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