BNY Mellon IM launches global convertible fund

BNY Mellon IM launches global convertible fund

January 29, 2020

Equity
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BNY Mellon Investment Management today announced the launch of the BNY Mellon Absolute Return Global Convertible Fund (the Fund), a sub-fund within the Dublin-domiciled BNY Mellon Global Funds range. The Fund is managed by Insight Investment, a leading global asset manager responsible for €789bn in assets under management. Insight is a specialist in risk management strategies, active fixed income, multi-asset and absolute return.

The Fund seeks to generate attractive risk-adjusted returns by focusing on valuation anomalies and through investment in a focused portfolio of convertibles paired with dynamic equity hedges. Security selection is driven by a combination of a ‘top-down’ thematic approach which responds to global macro cycles and structural disruptions, coupled with detailed ‘bottom-up’ analysis of industries and companies.

The Fund is co-managed by Frank Campana and James Doolin, senior portfolio managers at Insight.  Campana commented: “Our approach aims to capitalise on the pricing inefficiencies that can exist around the equity sensitivity and volatility drivers of convertible bond prices. We’re seeking to isolate these through a diversified global portfolio of long convertible positions dynamically hedged with the underlying equity.

“The convertible bond market has evolved significantly over the past decade with steady supply and an increasingly diverse investor base. This, combined with potential volatility given where we are in the economic and credit cycles, could represent a rich opportunity set for the Fund’s approach.”

Koen Hoogenhout, business development director in the Netherlands at BNY Mellon Investment Management”, commented: “We are pleased to be offering investors a UCITS strategy that has the potential to offer them a different pathway to positive returns with contained volatility and low correlation to the major asset classes. Both Frank and James have significant expertise managing assets in this fashion as well as an impressive track record spanning two decades.”

The Fund is registered for distribution in Austria, Belgium, Denmark, Germany, France, Finland, Ireland, Italy, Luxembourg, Netherlands, Norway, Spain, Sweden, Switzerland and the United Kingdom, and is aimed at professional investors and advised channels.

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