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

BNY Mellon Investment Management
BNY Mellon Investment Management (BNY Mellon IM) has launched the BNY Mellon Absolute Return Credit Fund, managed by Insight Investment (Insight), a €699 billion ($769 billion) global asset manager.

The fund aims to deliver a positive return in all market conditions, but positive returns are not guaranteed, the firm said in a statement. This is implemented through making long and short allocations to diverse areas of global credit such as investment grade, sub investment grade, emerging markets and asset-backed securities (ABS). It is classified as an Article 8 fund in accordance with the EU Sustainable Finance Disclosure Regulation.

Shaun Casey, who joined Insight’s global credit team in 2014, manages the fund. He is also responsible for supporting credit positioning on the BNY Mellon Absolute Return Bond Fund, the firm added. Casey is supported by Insight’s team of credit portfolio managers, including Adam Whiteley, head of global credit, specialists in high yield, emerging market and secured finance, as well as Insight’s team of credit analysts. 

“This fund benefits from the flexibility to consider all areas of credit markets when searching for attractive opportunities,” Casey said. “We’re looking for dislocations between an issue’s price and its fundamental value. Periods of market turbulence can lead to wider credit spreads and elevated uncertainty around market direction, resulting in pricing anomalies. Credit spreads are now notably higher than in 2017, when they hit pre-pandemic lows, and the dispersion across credit of similar quality has also widened. We believe this creates an excellent environment in which to seek alpha.” 

“In our view, absolute return strategies are well suited for periods of global monetary tightening and geopolitical uncertainty because they aim to generate positive returns even through difficult or volatile markets, unlike a traditional long-only approach,” added Matt Oomen, global head of distribution at BNY Mellon Investment Management.

The BNY Mellon Absolute Return Credit Fund is part of the Ireland-domiciled BNY Mellon Global Funds range and will be registered for sale in Austria, Belgium, Denmark, Finland, France, Germany, Italy, Luxembourg, the Netherlands, Norway, Sweden, Switzerland, Spain, and the UK.

New York-headquartered asset manager BNY Mellon IM has $1.8 trillion in assets under management.