Dreyfus Corporation
Encyclopedia
Dreyfus, established in 1951 and headquartered in New York City, is one of the nation’s leading managers of investment products and strategies. The company merged with Mellon Financial
in 1994, and then became a subsidiary of Bank of New York Mellon
when Mellon Financial and The Bank of New York merged in 2007. Dreyfus is now backed by the strength and resources of the global financial services powerhouse, BNY Mellon.
As a BNY Mellon Asset Management company, Dreyfus provides unique access to its exclusive and diverse global network of world-class asset managers, delivering powerful investment insight and strategies — equity, fixed income
and money market mutual funds, separately managed account
s, retirement and cash management
strategies and asset allocation
solutions. Dreyfus products are distributed through a variety of distribution channels: intermediary
(advisor-sold), institutional
, and retail direct.
founded a brokerage house in New York City named Dreyfus & Co.
In 1951, attracted by the concept of mutual funds, Dreyfus & Co. purchased a small management company named John G. Nesbett & Co., Inc. with a small common stock fund called The Nesbett Fund Incorporated. Nesbett & Co. was renamed The Dreyfus Corporation, and The Nesbett Fund became The Dreyfus Fund Incorporated.
Going public in 1965, Dreyfus was among the first money management firms to tap into the stock market for additional capital.
In 1972, Dreyfus moved to the forefront of socially responsible investing
by creating The Dreyfus Third Century Fund, Inc. It invests in companies that not only meet traditional investment standards, but also conduct business in a manner that is believed to contribute to a better quality of life.
Always sensitive to changing investor needs, Dreyfus was a pioneer in the area of money market funds with the launch of Dreyfus Liquid Assets in 1974. Dreyfus focused its sales efforts on the retail market, helping to lay the groundwork for the subsequent tremendous growth of money market funds.
In 1976, Dreyfus was among the first fund companies to introduce an incorporated tax-exempt municipal bond
fund.
In 1985, Dreyfus introduced its family of low expense Cash Management
Funds. And in the latter half of the 1980s, Dreyfus responded to investor demand by creating its Strategic Funds family, which incorporates sophisticated trading techniques made available to mutual funds by the Tax Reform Act of 1986
.
Recognizing the increasing availability of dollar-denominated foreign bank deposit instruments, in 1989 Dreyfus introduced Dreyfus Worldwide Dollar Money Market Fund, a pioneering money market fund for retail investors that could invest in dollar-denominated foreign money market instruments.
In 1957, Dreyfus became the first mutual fund company to launch a retail advertising campaign. Breaking from traditional "tombstone" mutual fund advertising, the lion made his debut on television emerging from a subway station and striding down Wall Street.
Later on, Dreyfus again stepped away from the pack when it published a full-color prospectus as a supplement to The New York Times. These advertisements were so distinctive that they received national press coverage. The lion continues to appear in Dreyfus advertising today and remains one of the most recognizable corporate trademarks in the United States.
In June 1998, Dreyfus introduced the mutual fund industry's first simplified prospectus
— designed to be an investor-friendly summary of the information contained in the full mutual fund prospectus.
Also in 1998, Mellon Financial Corporation acquired Founders Funds, which became the growth specialist affiliate of The Dreyfus Corporation, and became Dreyfus Founders Funds.
In February 2000, Dreyfus introduced separately managed account
s to further enhance the company's institutional
and investment advisory business. This service provides individually managed client portfolios and related investment services through institutional channels such as broker-dealer
s or financial planner
s. Fayez Sarofim & Co., the Houston-based asset management firm that also sub-advises several Dreyfus mutual funds, became the first asset manager to work with the Dreyfus separate accounts business.
, international and global mandates, continuing to build on Dreyfus' long history of product innovation. With the extensive offerings — and continued growth in its existing funds, Dreyfus' assets under management were approaching $200 billion. In July 2007, Dreyfus reached that milestone, crossing the threshold of $200 billion in assets under management
. As of 2011, Dreyfus manages $289 billion in 193 funds.
On July 1, 2007, The Bank of New York Company, Inc.
and Mellon Financial Corporation merged to form a new company The Bank of New York Mellon, one of the world's largest global asset management and serving company. The reach of Dreyfus' distribution capabilities now extends to the resources of BNY Mellon Asset Management – the umbrella organization for The Bank of New York Mellon Corporation's affiliated investment management firms and global distribution companies — and its exclusive network of world-class institutional investment managers.
In January 2008, The Dreyfus Corporation joined the ETF
business by partnering with WisdomTree Investments, Inc. on Fixed Income and Currency ETF products. The products are part of the WisdomTree Trust and are co-branded and marketed by both organizations. Dreyfus acts as subadvisor to the Trust.
In January 2009, BNY Mellon Asset Management announced the launch of BNY Mellon Cash Investment Strategies (CIS), a division of The Dreyfus Corporation. CIS is one of the industry's premier sources of institutional cash management investment products. CIS' consolidated credit research, investment management, and client service functions combine Dreyfus' historic strengths and pioneering work in money market mutual funds with separately managed short-duration, stable value, bond index and cash collateral reinvestment strategies.
At the end of 2009, Dreyfus announced the introduction of Dreyfus Brazil Equity Fund, one of the first mutual funds of its kind in the U.S.
In 2011, Dreyfus received the Best In-Class-Award from NQR for top service quality to their mutual fund shareholders.
Mellon Financial
Mellon Financial Corporation, was one of the world's largest money management firms. Based in Pittsburgh, Pennsylvania, it was in the business of institutional and high-net-worth-individual asset management, including the Dreyfus family of mutual funds; business banking; and shareholder and...
in 1994, and then became a subsidiary of Bank of New York Mellon
Bank of New York Mellon
The Bank of New York Mellon Corporation is a global financial services company formed on July 1, 2007 as result of the merger of The Bank of New York and Mellon Financial Corporation...
when Mellon Financial and The Bank of New York merged in 2007. Dreyfus is now backed by the strength and resources of the global financial services powerhouse, BNY Mellon.
As a BNY Mellon Asset Management company, Dreyfus provides unique access to its exclusive and diverse global network of world-class asset managers, delivering powerful investment insight and strategies — equity, fixed income
Fixed income
Fixed income refers to any type of investment that is not equity, which obligates the borrower/issuer to make payments on a fixed schedule, even if the number of the payments may be variable....
and money market mutual funds, separately managed account
Separately managed account
A separately managed account is an individual managed investment account offered typically by a brokerage firm through one of their brokers or financial consultants and managed by independent investment management firms and have varying fee structures...
s, retirement and cash management
Cash management
In United States banking, cash management, or treasury management, is a marketing term for certain services offered primarily to larger business customers...
strategies and asset allocation
Asset allocation
Asset allocation is an investment strategy that attempts to balance risk versus reward by adjusting the percentage of each asset in an investment portfolio according to the investors risk tolerance, goals and investment time frame.-Description:...
solutions. Dreyfus products are distributed through a variety of distribution channels: intermediary
Intermediary
An intermediary is a third party that offers intermediation services between two trading parties. The intermediary acts as a conduit for goods or services offered by a supplier to a consumer...
(advisor-sold), institutional
Institutional investor
Institutional investors are organizations which pool large sums of money and invest those sums in securities, real property and other investment assets...
, and retail direct.
Pioneer of Mutual Fund Investing
Dreyfus was among the pioneers of mutual fund investing and remains one of the most recognizable names in the business. The firm's origin dates back to 1947, when legendary investor Jack DreyfusJack Dreyfus
John J. "Jack" Dreyfus, Sr. was an American financial expert and the founder of the Dreyfus Funds.Born in Montgomery, Alabama, Dreyfus was a graduate of Lehigh University in Pennsylvania...
founded a brokerage house in New York City named Dreyfus & Co.
In 1951, attracted by the concept of mutual funds, Dreyfus & Co. purchased a small management company named John G. Nesbett & Co., Inc. with a small common stock fund called The Nesbett Fund Incorporated. Nesbett & Co. was renamed The Dreyfus Corporation, and The Nesbett Fund became The Dreyfus Fund Incorporated.
Going public in 1965, Dreyfus was among the first money management firms to tap into the stock market for additional capital.
In 1972, Dreyfus moved to the forefront of socially responsible investing
Socially responsible investing
Socially responsible investing , also known as sustainable, socially conscious, or ethical investing, describes an investment strategy which seeks to consider both financial return and social good....
by creating The Dreyfus Third Century Fund, Inc. It invests in companies that not only meet traditional investment standards, but also conduct business in a manner that is believed to contribute to a better quality of life.
Always sensitive to changing investor needs, Dreyfus was a pioneer in the area of money market funds with the launch of Dreyfus Liquid Assets in 1974. Dreyfus focused its sales efforts on the retail market, helping to lay the groundwork for the subsequent tremendous growth of money market funds.
In 1976, Dreyfus was among the first fund companies to introduce an incorporated tax-exempt municipal bond
Municipal bond
A municipal bond is a bond issued by a city or other local government, or their agencies. Potential issuers of municipal bonds includes cities, counties, redevelopment agencies, special-purpose districts, school districts, public utility districts, publicly owned airports and seaports, and any...
fund.
In 1985, Dreyfus introduced its family of low expense Cash Management
Cash management
In United States banking, cash management, or treasury management, is a marketing term for certain services offered primarily to larger business customers...
Funds. And in the latter half of the 1980s, Dreyfus responded to investor demand by creating its Strategic Funds family, which incorporates sophisticated trading techniques made available to mutual funds by the Tax Reform Act of 1986
Tax Reform Act of 1986
The U.S. Congress passed the Tax Reform Act of 1986 to simplify the income tax code, broaden the tax base and eliminate many tax shelters and other preferences...
.
Recognizing the increasing availability of dollar-denominated foreign bank deposit instruments, in 1989 Dreyfus introduced Dreyfus Worldwide Dollar Money Market Fund, a pioneering money market fund for retail investors that could invest in dollar-denominated foreign money market instruments.
Pioneer of Mutual Fund Advertising
In the 1950s, the Dreyfus lion became the symbol of The Dreyfus Corporation and its family of funds.In 1957, Dreyfus became the first mutual fund company to launch a retail advertising campaign. Breaking from traditional "tombstone" mutual fund advertising, the lion made his debut on television emerging from a subway station and striding down Wall Street.
Later on, Dreyfus again stepped away from the pack when it published a full-color prospectus as a supplement to The New York Times. These advertisements were so distinctive that they received national press coverage. The lion continues to appear in Dreyfus advertising today and remains one of the most recognizable corporate trademarks in the United States.
Milestone Merger
In 1994, Dreyfus completed its landmark merger with Mellon Bank Corporation, and became a wholly owned subsidiary of Mellon Financial Corporation. The merger, a milestone in the history of financial services in the United States, was at the time the largest-ever combination of a bank and mutual fund company.In June 1998, Dreyfus introduced the mutual fund industry's first simplified prospectus
Prospectus
Prospectus may refer to:* Prospectus * Prospectus * Prospectus * Parkland College's newspaper...
— designed to be an investor-friendly summary of the information contained in the full mutual fund prospectus.
Also in 1998, Mellon Financial Corporation acquired Founders Funds, which became the growth specialist affiliate of The Dreyfus Corporation, and became Dreyfus Founders Funds.
In February 2000, Dreyfus introduced separately managed account
Separately managed account
A separately managed account is an individual managed investment account offered typically by a brokerage firm through one of their brokers or financial consultants and managed by independent investment management firms and have varying fee structures...
s to further enhance the company's institutional
Institutional investor
Institutional investors are organizations which pool large sums of money and invest those sums in securities, real property and other investment assets...
and investment advisory business. This service provides individually managed client portfolios and related investment services through institutional channels such as broker-dealer
Broker-dealer
A broker-dealer is a term used in United States financial services regulations. It is a natural person, a company or other organization that trades securities for its own account or on behalf of its customers....
s or financial planner
Financial planner
A financial planner or personal financial planner is a practicing professional who helps people deal with various personal financial issues through proper planning, which includes: cash flow management, education planning, retirement planning, investment planning, risk management and insurance...
s. Fayez Sarofim & Co., the Houston-based asset management firm that also sub-advises several Dreyfus mutual funds, became the first asset manager to work with the Dreyfus separate accounts business.
Dreyfus Today
In January 2007, Dreyfus announced it had dramatically expanded its mutual fund lineup, adding 10 new offerings launched since December 2005, spanning equity, fixed incomeFixed income
Fixed income refers to any type of investment that is not equity, which obligates the borrower/issuer to make payments on a fixed schedule, even if the number of the payments may be variable....
, international and global mandates, continuing to build on Dreyfus' long history of product innovation. With the extensive offerings — and continued growth in its existing funds, Dreyfus' assets under management were approaching $200 billion. In July 2007, Dreyfus reached that milestone, crossing the threshold of $200 billion in assets under management
Assets under management
Assets under management is a financial term used denote the market value of funds being managed by a financial instutition on behalf of its clients, investors, depositors, etc. This metric is a sign of size and success against competition...
. As of 2011, Dreyfus manages $289 billion in 193 funds.
On July 1, 2007, The Bank of New York Company, Inc.
Bank of New York
The Bank of New York was a global financial services company established in 1784 by the American Founding Father Alexander Hamilton. It existed until its merger with the Mellon Financial Corporation on July 2, 2007...
and Mellon Financial Corporation merged to form a new company The Bank of New York Mellon, one of the world's largest global asset management and serving company. The reach of Dreyfus' distribution capabilities now extends to the resources of BNY Mellon Asset Management – the umbrella organization for The Bank of New York Mellon Corporation's affiliated investment management firms and global distribution companies — and its exclusive network of world-class institutional investment managers.
In January 2008, The Dreyfus Corporation joined the ETF
Exchange-traded fund
An exchange-traded fund is an investment fund traded on stock exchanges, much like stocks. An ETF holds assets such as stocks, commodities, or bonds, and trades close to its net asset value over the course of the trading day. Most ETFs track an index, such as the S&P 500 or MSCI EAFE...
business by partnering with WisdomTree Investments, Inc. on Fixed Income and Currency ETF products. The products are part of the WisdomTree Trust and are co-branded and marketed by both organizations. Dreyfus acts as subadvisor to the Trust.
In January 2009, BNY Mellon Asset Management announced the launch of BNY Mellon Cash Investment Strategies (CIS), a division of The Dreyfus Corporation. CIS is one of the industry's premier sources of institutional cash management investment products. CIS' consolidated credit research, investment management, and client service functions combine Dreyfus' historic strengths and pioneering work in money market mutual funds with separately managed short-duration, stable value, bond index and cash collateral reinvestment strategies.
At the end of 2009, Dreyfus announced the introduction of Dreyfus Brazil Equity Fund, one of the first mutual funds of its kind in the U.S.
In 2011, Dreyfus received the Best In-Class-Award from NQR for top service quality to their mutual fund shareholders.