BNY Mellon Investment Management has launched a high yield “beta” fund, saying asset managers have struggled to deliver index performance in this area.
The BNY Mellon US High Yield Beta Fund aims to achieve returns similar to the Bloomberg Barclays US Corporate High Yield Index over a full market cycle.
Its target index is the broad high yield market index, which the firm says provides the potential for superior results by accessing the full spectrum of high yield credits versus a more liquid subset of the broad index.
Matt Oomen, head of international distribution at BNY Mellon IM, said that the fund would feature improved liquidity in an illiquid sector.
Oomen said: “Accessing the returns of the high yield market has proven to be elusive, with asset managers struggling to keep pace with the performance of the broad market index. This is particularly true on a net basis.”
The is aimed at UK and European institutional and intermediary clients, and will be managed by Mellon Capital Management Corporation.
The fund is registered for distribution in the UK, Germany, France, Italy, Spain, the Netherlands, Austria, Belgium, Denmark, Finland, Norway and Sweden. It will also be registered in Switzerland.
BNY Mellon IM has US$1.8 trillion (€1.5 trillion) in assets under management.
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