BNY Mellon Investment Management has launched the BNY Mellon Global Infrastructure Income fund – its second offshore thematic fund launched into the Europe and the UK by the firm in 2018.
The BNY Mellon Global Infrastructure Income fund is managed by Jim Lydotes and Brock Campbell at The Boston Company, a brand of BNY Mellon Asset Management North America. The fund will be a mirror of the investment team’s popular $1.5bn global infrastructure dividend focus equity strategy, which was, up until now, only available in the United States.
It follows the launch of another thematic fund into the offshore marketplace – the BNY Mellon Mobility Innovation fund, which was rolled out earlier this year.
The company said in a statement announcing the launch that since inception in 2011, the strategy has “consistently generated a portfolio yield around 6% per annum”.
The fund will invest in a concentrated portfolio of 20-40 traditional and non-traditional listed infrastructure companies globally. It seeks to gain exposure to a wide universe of infrastructure opportunities which the investment manager believes are poised to benefit from “economic, social and environmental demands”. This includes traditional infrastructure sectors such as transport, energy and utilities as well as non-traditional communication and social sectors such as satellites, hospitals and senior care homes.
Hilary Lopez, head of European intermediary distribution at BNY Mellon Investment Management commented: “The launch of the BNY Mellon Global Infrastructure Income fund marks the second thematic fund launch in our offshore range this year. The lingering low interest rate environment is creating the need for viable, income-generating solutions to take the place of more traditional asset classes.”
The fund is a concentrated, high-conviction global equity portfolio that aims to” deliver a high yield with significantly less volatility and lower drawdown,” she added.
The fund will be available to investors in Denmark, Germany, France, Italy, Spain, Switzerland, Netherlands and the United Kingdom, amongst others, the company said.
Jim Lydotes, senior portfolio manager at The Boston Company, pointed to the opportunities to gain exposure to infrastructure as “extensive” and, he believes, will only continue to grow.
“There is an increasing need to update aged infrastructure, invest in emerging energy technologies and support both rising and maturing populations across the world. This is a research-driven, risk-aware strategy that balances the need for top-tier dividend and capital appreciation, providing a unique blend of high yield and growth.”