Wealth Manager - the site for professional investment managers

Register free for our breaking news email alerts with analysis and cutting edge commentary from our award winning team. Registration only takes a minute.

BNY Mellon brings US income fund to the UK

BNY Mellon brings US income fund to the UK

BNY Mellon Investment Management is to launch an onshore version of its US-domiciled $1.1 billion (£872 million) BNY Mellon Income Stock fund.

The BNY Mellon US Equity Income fund will be managed by John Bailer, who is the senior portfolio manager for US dividend portfolios at the firm’s subsidiary, The Boston Company.

The US-domiciled version of the fund, which launched in 2000, has returned 33% over three years to the end of October, compared to a sector average gain of 26%. Over one year it is up 4.9% versus 2.7%. 

The ongoing charges figure (OCF) of the fund will be 0.82%.

The company launched an Irish-domiciled version of the fund in January 2017 and it has built up $410 million of client assets.

The strategy targets a dividend yield of more than one and a half times the yield of the S&P 500 index, and it will only invest in US equities with market capitalisations above $2 billion.

Fergus McCarthy, head of UK and Ireland intermediary distribution at BNY Mellon Investment Management, said: ‘Two years ago, we decided to launch the BNY Mellon US Equity Income fund in response to the strong demand that we were seeing for income strategies with exposure to the world’s largest economy.

‘This demand continues to be evident among UK investors – particularly at a time when value stocks are at attractive levels after a significant period of growth outperformance – driving our decision to launch an onshore mirror fund.’

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 Citywire 20: Investec's du Toit on managing the 'jerk factor'

Citywire 20: Investec's du Toit on managing the 'jerk factor'

Investec boss Hendrik du Toit believes he has become far more decisive over the last 20 years, especially when it comes to managing 'jerk' factor.

Play Citywire 20: Hugh Young's bleak lesson

Citywire 20: Hugh Young's bleak lesson

In the latest video to mark Citywire's 20th birthday, Aberdeen Standard Investments Asia head reminisces about one of the toughest periods in his career.

Play IWD 2019 video: fund and wealth figures define diversity

IWD 2019 video: fund and wealth figures define diversity

To mark International Women's Day, we have spoken to a variety of top fund houses and wealth managers about their definition of diversity, and how they hope to achieve a more inclusive workplace.

Read More
Your Business: Cover Star Club

Profile: Richard Whitehead - 'In my 20s, I was very difficult to work with'

1 Comment Profile: Richard Whitehead - 'In my 20s, I was very difficult to work with'

Dart Capital boss Richard Whitehead is at a pivot point for the business, and looking back to assess where he is, as much as he is looking forward

Wealth Manager on Twitter