BNY Mellon Investment Management announced the launch of a UCITS Dynamic Total Return Fund. The launch gives European investors access to the successful Dynamic Total Return strategy which was previously limited to US investors. The US vehicle has recently passed through the USD$1 billion mark off the back of very strong performance and has been the number one fund in the Morningstar Multialternative universe over five years.
The BNY Mellon Dynamic Total Return Fund is the latest addition to BNY Mellon’s multi-asset range and will replicate the strategy of its US counterpart with the aim of keeping pace with global equity markets while also managing volatility and cushioning any market falls.
The Dublin-domiciled UCITS fund is aimed at investors seeking to achieve managed growth with a lower drawdown. The portfolio primarily uses futures to gain exposure to global equity and bond markets. It also invests in more specialist asset classes such as currencies, commodities and inflation-protected securities. The Fund will be managed by the multi-asset team at Mellon Capital Management, one of BNY Mellon’s investment boutiques, and led by Vassilis Dagioglu. Dagioglu is also lead manager on the US vehicle.
Matt Oomen, Head of European Distribution at BNY Mellon Investment Management EMEA, commented: “We are seeing significant and growing client demand for multi-asset investment solutions. The Dynamic Total Return Fund provides our clients with access to an equity-like target return product alongside our existing suite of absolute return and total return products. It fits perfectly into our range as we continue to build out our offering in this space. The European launch of the Dynamic Total Return Fund gives clients the opportunity to invest in a strategy with a 10 year track record and the chance to benefit from Mellon Capital’s 25 years’ experience in the multi-asset space.”
Vassilis Dagioglu, Lead Manager of the BNY Mellon Dynamic Total Return Fund, said: “The Fund is a diversified growth fund which seeks to profit from mis-pricings across assets and between markets. Using forward-looking valuation models which incorporate expectations for future cash flows, we apply our fundamental analysis in a systematic process on a big scale, on a frequent basis, and with a strong emphasis on downside risk control. Allocations are consequently spread across a range of equity, bond, currency and commodity market exposures and dynamically adjusted as forecasts evolve. As one of the top performing funds in the Morningstar Multialternative universe, we are pleased to be able to offer this product to European investors within a UCITS structure.”
The Fund is part of BNY Mellon’s Global Fund range and is available to investors in Germany, France, Italy, Switzerland, Spain, Portugal, Denmark and the Netherlands.