Wealth Manager - the site for professional investment managers

Register to get unlimited access to Citywire’s fund manager database. Registration is free and only takes a minute.

BNY Mellon brings US high yield fund to the UK

BNY Mellon brings US high yield fund to the UK

BNY Mellon Investment Management (IM) has launched a US high-yield smart beta fund in the UK.

The US High Yield Beta fund will be managed by the firm’s San Francisco-based boutique Mellon Capital Management.

The fund aims to deliver returns similar to the Bloomberg Barclays US Corporate High Yield Index across a full market cycle by maintaining market risk in line with the benchmark and monitory default risk.

The strategy will carry an annual management charge of o.2%.

‘Accessing the returns of the high yield market has proven to be elusive, with asset managers struggling to keep pace with the performance of the broad market index,’ said Matt Oomen, head of international distribution at BNY Mellon IM.

‘This is particularly true on a net basis. The fund we are introducing is more cost efficient than the competition and has an innovative approach to sourcing bonds and managing transaction costs.

'We believe it will deliver competitive performance in line with the index, and features improved liquidity in an illiquid sector.’

He added the fund is based on a strategy Mellon Capital Management has been running for the last five years.

Paul Benson, head of fixed income portfolio management at Mellon Capital Management, said: ‘We believe there is a real opportunity in the high-yield market. Our investment strategy offers investors the chance to make a cost-effective asset allocation to the US high yield market.’

The fund is registered for distribution in the UK, Germany, France, Italy, Spain, the Netherlands, Austria, Belgium, Denmark, Finland, Norway and Sweden. It will also be registered in Switzerland.

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.
Citywire TV
Play Liontrust ESG head says sustainable investment doesn't mean low return

Liontrust ESG head says sustainable investment doesn't mean low return

Peter Michaelis talks about ethical investment growth and where he sees future opportunites.

Play Are platforms the biggest barrier to wealth manager ETF take-up?

Are platforms the biggest barrier to wealth manager ETF take-up?

Citywire hosted a roundtable discussion to find out how and if wealth managers are using ETFs in their clients' portfolios and the challenges they face trading through different platforms.

Play SVM's Veitch on what's next for banks

SVM's Veitch on what's next for banks

SVM fund manager Neil Veitch is finding value in what he describes as unstable financials and talks through his favourite small caps.

Read More
Your Business: Cover Star Club

Profile: Affinity’s Julia Warrander on the importance of diversity

1 Comment Profile: Affinity’s Julia Warrander on the importance of diversity

'Sometimes there are 10, sometimes 20 people around a table and, more often than not, I’m the only woman,' says the Affinity Wealth co-chief investment officer

Wealth Manager on Twitter