BNY Mellon said that the Total Emerging Markets strategy seeks to create a diversified portfolio comprising the opportunities in emerging markets bonds, equities, and currencies.
Through this new strategy, Standish and TBCAM will share asset allocation and country selection decisions.
Standish will select fixed income securities and make currency management decisions with TBCAM handling equity selections.
The Total Emerging Markets strategy will utilize an integrated platform for controlling risk, and incorporates the expertise and complementary perspectives of investment professionals at Standish and TBCAM with experience in emerging markets equities, US dollar-denominated bonds, local interest rates, and currencies.
For each asset class, security selection will be based on an established investment process at the respective firms, said BNY Mellon.
Alexander Kozhemiakin, who leads the emerging markets fixed income team at Standish said that they have designed the Total Emerging Markets strategy so it can seek better risk-adjusted and absolute long-term performance than traditional emerging markets equity portfolios benchmarked against the MSCI EM Index.
Sean Fitzgibbon, the team leader for emerging markets core equities at TBCAM said that the strategy is truly integrated since both firms will jointly assess investment opportunities in each emerging markets country by asset class, as opposed to simply deciding on the overall asset allocation split for the entire portfolio and then managing the equity and fixed income sleeves separately.
