- First U.S. mutual fund launched by BNY Mellon and sub-advised by Insight
- Harnesses Insight's 10-year track record in flagship multi-strategy absolute return capability
NEW YORK, Dec. 9, 2015 /PRNewswire/ -- BNY Mellon Investment Management today announced the launch of the BNY Mellon Absolute Insight Multi-Strategy Fund (the "Fund"; Class I: MAJIX), an absolute return multi-strategy fund available in a liquid alternatives mutual fund vehicle. The Fund is sub-advised by Insight Investment ("Insight")1. Insight is a BNY Mellon investment boutique with $605 billion under management globally2, including $27 billion3 in liquid alternative strategies.
The BNY Mellon Absolute Insight Multi-Strategy Fund is the first mutual fund launch in the U.S. 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.4 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 emphasizes 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 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 said: "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, said: "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, said: "The launch of the BNY Mellon Absolute Insight Multi-Strategy Fund means that U.S. investors will have access to Insight's deep experience in providing absolute return investment strategies to investors within a cost-efficient, single-manager structure."
The Fund will be advised by The Dreyfus Corporation, a BNY Mellon Company, and distributed by MBSC Securities Corporation (MBSC), a wholly-owned subsidiary of Dreyfus. The Fund will be available in Class A, C and I shares with a minimum $1,000 initial investment. It will also be available as Institutional Y shares with a minimum investment of $1,000,000 with no minimum subsequent investment. Additional information regarding the Fund can be found on the Dreyfus website at www.dreyfus.com.
About Insight
Insight Investment is an asset management organization focused on designing investment solutions to meet its clients' needs. Founded in 2002, Insight's collaborative approach has strived to deliver both investment performance and growth in assets under management. Insight manages $605 billion2 globally and employs about 200 investment professionals, having 675 staff in total. In the U.S., Insight offers domestic and global fixed income, absolute return and unconstrained strategies and solvency management and solutions. More information can be found at insightinvestment.com.
About BNY Mellon Investment Management
BNY Mellon Investment Management is one of the world's leading investment management organizations and one of the top U.S. wealth managers, with $1.6 trillion in assets under management. It encompasses BNY Mellon's affiliated investment management firms, wealth management services and global distribution companies, including the Dreyfus Corporation, Insight Investment and MBSC Securities Corporation. Dreyfus and Insight are affiliates. BNY Mellon is the corporate brand for The Bank of New York Mellon Corporation. MBSC Securities Corporation is a registered broker-dealer, a member of FINRA and a wholly owned subsidiary of BNY Mellon. More information can be found at www.bnymellon.com/IM or Dreyfus.com.
About BNY Mellon
BNY Mellon is a global investments company dedicated to helping its clients manage and service their financial assets throughout the investment lifecycle. Whether providing financial services for institutions, corporations or individual investors, BNY Mellon delivers informed investment management and investment services in 35 countries and more than 100 markets. As of September 30, 2015, BNY Mellon had $28.5 trillion in assets under custody and/or administration, and $1.6 trillion in assets under management. BNY Mellon can act as a single point of contact for clients looking to create, trade, hold, manage, service, distribute or restructure investments. BNY Mellon is the corporate brand of The Bank of New York Mellon Corporation (NYSE: BK). Additional information is available on www.bnymellon.com. Follow us on Twitter @BNYMellon or visit our newsroom at www.bnymellon.com/newsroom for the latest company news.
Disclosure Statement
Investors interested in the Fund should consider the investment objectives, risks, charges, and expenses of the Fund carefully before investing. Past performance is no guarantee of future results. Asset allocation and diversification cannot ensure a profit or protect against loss in declining markets. All investments involve some level of risk, including loss of principal. Certain investments have specific or unique risks.
To obtain a mutual fund prospectus that contains this and other information about the Fund, investors should contact their financial representatives or visit Dreyfus.com. Read the prospectus carefully before investing.
Main Risks
Allocation risk: The ability of the fund to achieve its investment goal depends, in part, on the ability of the fund's sub-adviser to allocate effectively the fund's assets among the investment strategies and asset classes. There can be no assurance that the actual allocations will be effective in achieving the fund's investment goal. In addition, if one strategy buys a security during a time frame when another strategy sells it or holds a short position in the security, the fund will incur transaction costs and the fund's net position in the security may be approximately the same as it would have been with a single strategy and no such portfolio transactions or if none of the strategies had held such security or taken such position. Bond Risk: Bonds are subject generally to interest rate, credit, liquidity, call and market risks, to varying degrees. Generally, all other factors being equal, bond prices are inversely related to interest-rate changes and rate increases can cause price declines. Correlation risk: Because the fund allocates its investments among different asset classes, the fund is subject to correlation risk. Although the prices of equity securities and fixed-income securities, as well as other asset classes, often rise and fall at different times so that a fall in the price of one may be offset by a rise in the price of the other, in down markets the prices of these securities and asset classes can also fall in tandem. Currency risk: A decline in the value of foreign currencies relative to the U.S. dollar will reduce the value of securities held by the fund and denominated in those currencies. Foreign currencies are also subject to risks caused by inflation, interest rates, budget deficits, low savings rates, political factors and government control. Derivative risk: The use of derivative instruments, such as options, futures and options on futures, forward contracts, swaps, options on swaps, and other credit derivatives, involves risks different from and possibly greater than the risks associated with investing directly in the underlying assets. A small investment in derivatives could have a potentially large impact on the fund's performance. Equity Risk: Equities are generally subject to market, market sector, market liquidity, issuer and investment style risks, among other factors, to varying degrees. Foreign investment risk: Investing internationally involves special risks, including changes in currency exchange rates, political, economic and social instability, a lack of comprehensive company information, differing auditing and legal standards, and less market liquidity. These risks are generally greater with emerging market countries. Short position risk: Short sales may involve substantial risk and "leverage." Short sales expose the fund to the risk that it will be required to buy the security sold short at a time when the security has appreciated in value, thus resulting in a loss.
1Insight Investment is the corporate brand for the group of companies managed or administered by Insight Investment Management Limited which includes Insight Investment Management (Global) Limited, Pareto Investment Management Limited, Insight Investment Funds Management Limited, Cutwater Investor Services Corporation (CISC) and Cutwater Asset Management Corporation (CAMC). CISC and CAMC are owned by BNY Mellon and operated by Insight. The sub-adviser for this fund is Pareto Investment Management Limited, an affiliate of The Dreyfus Corporation and a subsidiary of Insight Investment Management Limited.
2 As at 30 September 2015. Assets under management (AUM) are represented by the value of cash securities and other economic exposure managed for clients. Reflects the AUM of Insight entities listed above.)
3 Insight's total assets under management in liquid alternative strategies is comprised of $6,582.6m in the Absolute Insight range, $11,027.4m in the Bonds plus range, $4,352m in Libor plus, $3,730.3m in Global Multi-Asset Growth.
4 Although the fund is newly organized and does not yet have its own performance record, the fund's portfolio managers manage certain discretionary investment management accounts, including UCITS funds established in Europe, as employees of Insight or its subsidiaries using substantially the same investment objective, policies and strategies as the fund (collectively, the "Related Accounts"). The track record is given as a composite of these 'Related Accounts'. See the Fund's prospectus for additional information.
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SOURCE BNY Mellon
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