The latest news in investment offerings, financial products and other services relative to wealth advisors and their clients.

BNY Mellon IM 
BNY Mellon Investment Management has just launched the BNY Mellon Multi-Asset Moderate Fund, complementing its existing offering and enhancing its UK retirement proposition.

The fund, which will be managed by Newton Investment Management, a subsidiary of BNY Mellon IM, is designed to deliver capital growth with the potential for income over the long term. It will be actively managed, with a moderate level of risk, taking a thematic bottom-up fundamental approach to security selection, the firm said in a statement.

The fund is unconstrained, allowing the portfolio managers to invest in any geography or economic sector, with a minimum exposure of 30 per cent in fixed income and or cash investments, aligning performance to the Investment Association’s Mixed Investment 20 to 60 per cent sector benchmark.

Paul Flood, head of Mixed Assets at Newton Investment Management, will manage the fund, drawing on the expertise of Newton's multi-dimensional research platform to identify opportunities across the investment landscape, the firm continued. He will be supported by portfolio managers Bhavin Shah and Janice Kim.

“With higher levels of volatility expected to define markets for the foreseeable future, investors are seeking solutions fit for this ‘new normal’”, Flood said. “Against this backdrop, bond markets are offering appealing returns to investors looking for diversification within a multi-asset offering. The fund adds to our comprehensive range of multi-asset capabilities, reflecting our ability to develop strategies that take account of the regime change we are seeing.” 

“The launch of the BNY Mellon Multi-Asset Moderate Fund comes at a pivotal time,” Michael Beveridge, head of UK Intermediary Distribution at BNY Mellon Investment Management, said. “It represents the expansion and continued investment in our wider retirement proposition, following the launch of BNY Mellon FutureLegacy, a UK retirement-relevant fund range, and the newly-appointed head of retirement.”

First Trust
First Trust has launched an exchange-traded fund in the UK which provides a “buffer” of downside protection while tapping returns from the S&P 500 US equity market index.

The fund, First Trust Cboe Vest US Equity Moderate Buffer UCITS ETF, which is listed on the London Stock Exchange, is designed to help investors maintain a pre-determined level of 15 per cent downside protection, while also taking advantage of the growth of the S&P 500®, up to a predefined cap, First Trust said in a statement. 

The fund’s outcome period runs for approximately one year, ending in August 2024. At the end of the outcome period, the cap and buffer will be reset to prevailing market conditions. The fund has a perpetual structure and may be held indefinitely, First Trust said. 

First Trust Advisors, who manage the fund, are sub-advised by Cboe Vest Financial. 

“Demand for buffer ETFs has increased as investment professionals seek new tools to navigate the equity market uncertainty,” Derek Fulton, CEO at First Trust Global Portfolios, said.