BNY Mellon Investment Management is launching a global credit fund for subsidiary Insight Investment’s fixed income team, led by head of UK and global credit Peter Bentley and portfolio manager Adam Whiteley.
The Irish-domiciled Ucits fund will target global investment grade issuers, sectors and international regions, using a flexible mandate to invest in high yield, loans, asset-backed securities, emerging market debt, government bonds and currency.
The BNY Mellon Global Credit fund has a performance target of 1.5 per cent annual outperformance of its benchmark, the Barclays Global Aggregate Credit Index.
It will have a minimum investment of $5,000 or equivalent in sterling, euro, Swiss franc and Canadian dollar share classes, with currency-hedged options available.
BNY Mellon head of UK and Ireland intermediary distribution Fergus McCarthy says: “In speaking to clients, we’ve found that most investors are overexposed to their domestic region when it comes to credit.”
He says given Bentley and Whiteley’s track record with the institutional global credit strategy, which the team has run since 2011, it was a natural decision to launch a Ucits vehicle for their UK and European clients, supported by growing client demand.
Bentley adds: “In our experience, global credit strategies offer investors access to a highly diverse set of opportunities, much broader than the domestic focus of most credit strategies.
“Managers with a top-down understanding of international credit cycles, coupled with the resources to offer bottom-up credit coverage can therefore potentially enhance the risk return outcome.
“With government yields at or close to historic lows, investment grade credit offers attractive additional yield alongside lower volatility and greater liquidity than high yield credit.”
The fund is registered for sale in the UK, Canada, Italy, Spain, France, Denmark, Germany and the Netherlands.