Bank of New York (BNY) Mellon Asset Management is bringing a global fixed income product to the retail market next month.
The Global Strategic Bond fund will be managed by David Leduc, the director of global fixed income, and Thomas Fahey, a senior portfolio manager at Standish, a subsidiary of BNY Mellon which specialises in fixed income.
The fund will be launched on April 9 and sit in the Investment Management Association (IMA)’s £ Strategic Bond sector.
The managers can invest across the fixed income spectrum and in a range of global markets. They will be able to move between sovereign bonds and high yield, depending on market movements.
Leduc says that the product will take advantage of opportunities that arise from extreme volatility in fixed income markets.
The fund will yield an estimated 5.3% at launch, and will aim to outperform the Barclays Capital Global Aggregate Bond index by 1% annually over a rolling five-year period. The underlying portfolio will be 80% to 100% hedged to sterling to avoid unintentional currency risk.
Minimum investment in the retail share class is £1,000, initial charge is 4% and annual management charge is 1%.