BNY Mellon Investment Management has launched the BNY Mellon Emerging Market Debt Total Return fund that will be managed by Insight Investment, a BNY Mellon IM boutique.
Insight’s head of Emerging Market Fixed Income Colm McDonagh (pictured) manages the fund alongside emerging market investment specialists, themselves supported by a 106-strong fixed income investment team managing £121.1bn (€136.39bn).
The fund is a compartment of BNY Mellon Global Funds plc, an Dublin-domiciled Ucits umbrella fund. It will be made available to investors in the UK, Europe and the Asia Pacific region and will be registered for sale in the UK, Italy, Germany, Switzerland, Austria, France, Belgium, Spain, Portugal, Norway, Sweden, Finland, Denmark, Luxembourg and Singapore.
Commenting the launch of the fund, McDonagh said: “EM debt has undergone a dramatic transformation over the past two decades and today accounts for approximately 25% of global fixed income with opportunities in more than 70 countries. Investors are increasingly moving away from constrained single-sector EM debt to strategies where the investment manager has the freedom to allocate across all opportunities at their own discretion.
“This fund dynamically allocates across countries and securities according to the relative attractiveness of sovereign, corporate and local currency debt. It responds to demand for a long-only EM debt strategy that aims to mitigate the cyclicality of single sector approaches, and also serves as a complement to Insight’s existing EM strategies. We see this fund’s dynamic and unconstrained approach as an evolution in the way investors will allocate to EM debt.”
BNY Mellon IM had $1.8trn (€1.47trn) of assets under management as of 30 September 2017 while its affiliate Insight managed $741bn (€605.47bn) at the same date.