BNY Mellon Investment Management has bolstered its bond range with the launch of a high yield beta fund, the company has announced.
The BNY Mellon US High Yield Beta fund will be managed by Mellon Capital Management Corporation, an investment boutique of BNY Mellon IM.
It seeks to overcome the difficulties high-yield bond funds have experienced recently while following a unique and cost-efficient approach aiming to achieve similar returns to the Bloomberg Barclays US Corporate High Yield Index, over a full market cycle.
Mellon Capital Management’s senior fixed income portfolio manager, Manuel Hayes, will be lead manager on the fund. This is with all team members reporting to the firm’s head of fixed income portfolio management, Paul Benson.
The fund will use individual high-yield bonds to reflect the key risk characteristics of the benchmark, with a focus on matching the market risk of the benchmark.
Commenting on the launch, Benson said: ‘We believe there is a real opportunity in the high-yield market. Our investment strategy offers investors the chance to make a cost-effective asset allocation to the US high-yield market.'
The fund will be registered for distribution in the UK, Germany, France, Italy, Spain, the Netherlands, Belgium, Denmark, Finland, Norway, and Sweden. It will also be registered in Switzerland.