BNY Mellon Investment Management has launched the BNY Mellon Absolute Insight Multi-Strategy Fund, an absolute return multi-strategy fund available in a liquid alternatives mutual fund vehicle.
The Fund is sub-advised by Insight Investment, a BNY Mellon investment boutique with USD605 billion under management globally, including USD27 billion in liquid alternative strategies.
The BNY Mellon Absolute Insight Multi-Strategy Fund is the first mutual fund launch in the US to be managed by Insight and is substantially similar to Insight's flagship multi-strategy absolute return capability, which has a 10-year track record of providing resilient absolute returns through episodes of market dislocation, within a registered fund format. The new Fund is designed to incorporate the institutional-quality investment and governance processes that apply to all of Insight's absolute return range.
The Fund emphasises capital preservation as it seeks to generate positive returns over rolling 12-month periods with volatility similar to conservative fixed income assets and low correlation to both stocks and bonds. Its mandate is to invest across a diverse range of six absolute return investment strategies including equities, fixed income, currency and other asset classes, with the aim of reducing the risk of capital loss from sudden market downturns.
Sonja Uys (pictured) is the lead Fund Manager and also a member of Insight's Absolute Return Investment Committee, which oversees the investment strategy. She is supported by specialist portfolio managers responsible for the underlying portfolios.
Uys says: "Faced with the prospect of increased market volatility, we find that investors are looking for strategies that can be resilient through turbulent periods. Our Fund can invest across a range of absolute return investment strategies in order to achieve a high degree of built-in diversification. Investors might consider it as part of a low-volatility alternatives allocation, or as an alternative to a fixed income allocation."
Svein Floden, Head of Liquid Alternatives at Insight, says: "The BNY Mellon Absolute Insight Multi-Strategy Fund combines Insight's disciplined institutional approach to absolute return investing with the 10-year track record from one of our flagship strategies. We believe this differentiates this mutual fund proposition in the growing liquid alternatives market."
Joseph Moran, Executive Vice President and Head of Intermediary Sales for BNY Mellon Investment Management, says: "The launch of the BNY Mellon Absolute Insight Multi-Strategy Fund means that US investors will have access to Insight's deep experience in providing absolute return investment strategies to investors within a cost-efficient, single-manager structure."
