BNY Mellon Investment Management, the world’s largest multi-boutique asset manager with $1.7trn (€1.5trn) in assets under management, has launched the BNY Mellon US equity income fund.
The fund, managed by The Boston Company Asset Management, a $38.1bn US-based active equity manager majority owned by BNY Mellon, and will follow the strategy of its $1bn US domiciled equivalent, the BNY Mellon Income Stock fund.
John Bailer is the lead manager of the fund, which aims to deliver high dividend yield and will focus on stocks that offer dividend growth, solid fundamentals and attractive valuations. It will be fully invested in 30 to 60 US equities with broad sector exposure and has a yield target 50% greater than the yield of the S&P 500 Index.
The investment team, led by John Bailer, together has an average of 22 years investment experience and will employ their time-tested investment process and philosophy of value investing, sector expertise and stock-picking capability.
“We are seeing demand from clients for a quality US equity income product as the sector continues to increase in popularity amongst investors who are on the hunt for exposure to dividend-paying, stable companies that are able to deliver consistent returns,” said Hilary Lopez, head of European Intermediary Distribution at BNY Mellon IM.
“U.S. corporations are sitting on over $4.3trn in cash balances and their cash flow from operating activities is currently at record levels. Coupled with a fundamentally sound US economy there is a strong case for investing in US equity income,” Bailer said.