BNY Mellon Investment Management has launched Sustainable Global Real Return fund, managed by its investment firm Newton Investment Management.
It is the newest Dublin-based fund from Newton's sustainable range and is available to institutional investors, intermediaries and private investors from Europe.
Managed by Newton's flagship global real return team, the fund represents a sustainable Version of Newton's existing global real return strategy. It is actively managed, and pursues an absolute return style performance goal. The predominantly classic income-oriented assets, with an additional level of risk-compensating positions, are intended to dampen volatility and preserve capital.
The fund invests in traditional asset classes such as stocks, corporate bonds, government bonds, money market instruments and derivatives and can also be involved in other assets such as commodities through tradable securities. It follows Newton's strict sustainability criteria. It avoids companies with incalculable ESG risks, which should affect future performance, and does not invest in companies that generate more than ten percent of their turnover from the production and sale of tobacco.
The new strategy aims for a total return which is the money market benchmark 1-month EURIBOR (Euro Interbank Offered Rate) by four percent per year over five years.