The fund is the second launched by BNY Mellon for which the management has been passed to investment boutique Insight, which the bank acquired in 2009. Insight is now one of the 16 autonomous investment firms which make up BNY Mellon Asset Management.
The Dublin-domiciled Ucits fund was launched on 31 January and is managed by Insight’s emerging market debt team headed by Colm McDonagh.
BNY said the fund will aim to generate a total return comprised of income and capital growth by investing primarily in corporate debt and related financial derivative instruments issued by emerging market issuers.
With a focus on investing in issues from companies big enough to ensure good liquidity, BNY said the fund will consist of a globally diversified “best ideas” portfolio “seeking to invest in the most compelling risk-adjusted opportunities, irrespective of benchmark weighting, from both dollar and local currency issuers”.
The company added that a core aim of the fund will be to capture the existing structural premium available from emerging market issuers compared with similar corporate issuers in the developed markets. Furthermore, BNY said the fund will invest in the credit improvement of newer issuers as emerging countries gain a more significant share of global GDP and global trade.
Alan Mearns, chief executive officer of BNY Mellon Asset Management International, said: “We believe that the emerging market corporate debt asset class is the next significant ‘structural’ component within the emerging market universe.
“The addition of this Fund to our range to sit alongside the highly regarded BNY Mellon Emerging Markets Debt Local Currency Fund underlines our commitment to being a leader in providing emerging market debt products in Europe.”
