BNY Mellon Investment Management has announced it is offering a global credit fund to investors for the first time in its Ucits fund range.
BNY Mellon Global Credit fund will be managed by Insight Investment Management’s fixed income team which is responsible for £90bn (€115bn) of Insight’s total £407bn (€520bn) under management.
The fund, which is a sub-fund of BNY Mellon Global Funds, plc, an Irish domiciled Ucits umbrella fund, is designed as an alternative to regionally constrained approaches to credit markets.
It aims to generate outperformance by targeting positions in global investment grade issuers, sectors and international regions where credit spreads offer best value, while gaining from underweight positions where value is poorest.
Its mandate allows the managers to extend tactical allocations to high yield, loans, asset-backed securities, emerging market debt, government bonds and currency.
The fund’s investment management team is co-led by Peter Bentley and Adam Whiteley.
The institutionally-orientated Insight Global Credit strategy, which it has managed since 2011, has produced a return of 6.09% since inception as well as positive returns above benchmark in every calendar year to January 2016 leading it to exceed its 1.5% relative outperformance target.
Bentley and Whiteley are part of Insight’s 98-strong global fixed income team which includes the £2bn (€2.5bn) BNY Mellon Global Absolute Return Bond fund.
BNY Mellon Global Credit Fund is registered for sale in the UK, Canada, Italy, Spain, France, Denmark, Germany and the Netherlands.
Hilary Lopez, head of European Intermediary Distribution, BNY Mellon Investment Management said: “In speaking to clients, we’ve found that most investors are over exposed to their domestic region when it comes to credit.
“Peter and Adam are part of one of Europe’s best resourced credit teams employing specialist coverage of US and European credit markets and have an established track record running the Global Credit strategy, so it was a very natural decision, supported by client demand, to provide a Ucits structure for the strategy for clients in the UK and Europe.”