The fund, a sub-fund of BNY Mellon global funds, will be managed by Newton Investment Management, one of BNY Mellon’s asset managers specialising in global and regional equities and bonds, as well as multi-asset, unconstrained and absolute return funds.
The BNY Mellon Global Real Return Fund (EUR) will be managed by James Harries, director of investment, global funds at Newton, who has over 13 years of experience. Iain Stewart, director of investment, global funds, will act as the alternate on the fund. The fund will be managed in line with Newton’s global thematic investment approach.
The BNY Mellon Global Real Return Fund (EUR) will aim to achieve a total return in excess of a cash benchmark over an investment horizon of three to five years. To achieve this, the fund will use its ability to invest freely in a range of asset classes, aiming to have a reasonably moderate risk exposure at any point in time. With no sector allocation restrictions, the fund’s manager can decide to invest in equities, equity-related securities, fixed income securities, deposits, derivative instruments, cash, money market instruments and cash equivalents.
Paul Feeney, head of international distribution at BNY Mellon Asset Management, said: “This fund provides the flexibility vital to delivering a real return in an increasingly volatile world. The BNY Mellon Global Real Return Fund (EUR) is aimed at European investors seeking absolute returns from a diversified strategy with potentially lower volatility levels than equities.
“We believe that a wide group of clients in Europe will be increasingly interested in investing in this kind of strategy. The fund will be both accessible to institutional and retail investors.”
Mr Harries said: “Based on the success of the existing UK domiciled Newton Real Return Fund and, in a world where portfolio diversification is key to the generation of attractive risk-adjusted returns; we are pleased to offer a version of the Real Return Fund investing in global assets to produce an absolute return in Euros.”
