The fund is a sub-fund of the Dublin-domiciled, UCITS III authorized, BNY Mellon Global Funds range.
According to the BNY Mellon, the fund will be managed by Insight Investment’s equity team, who have a track record of generating positive returns in the Absolute Insight UK Equity Market Neutral Strategy.
The fund seeks to deliver positive absolute returns in all market conditions, over a 12 month period, investing in both long and short positions in the pan-European market by employing a paired trade approach.
The fund will also be able to take large investment positions and directional market exposure to capture upside opportunities.
As well as the dynamic management of net and gross exposure and daily liquidity, the managers will employ a stop-loss discipline on each investment position to help contain downside risk and drawdowns.
Initially the focus of the fund will be on pan-Europe, with a bias towards the UK. However, the fund does not has any geographical constraints.
Insight Investment head of specialist equities and co-manager of the BNY Mellon Absolute Return Equity Fund Andy Cawker said by blending pair-trade stock selection skills with dynamic hedging informed by the broader understanding of market conditions, we aim to give investors smoother long-term returns, without sharp fluctuations in the value of their investments.
