Wealth Manager - the site for professional investment managers

Register to get unlimited access to all of Citywire’s Fund Manager database. Registration is free and only takes a minute.

BNY Mellon launches euro credit fund in UK

BNY Mellon launches euro credit fund in UK

BNY Mellon is launching its WestLB Mellon Euro Credit Short Duration fund in the UK with a new sterling share class.

The fund is part of the firm’s WestLB Mellon Compass Fund range and invests in corporate bonds denominated in euros with a rating of at least B3 or B-, with a residual maturity of 3.5 years.

The Luxembourg-domiciled fund, managed by Alexis Renault, has a 4% yield target with a volatility of less than 4%, and actively allocates between investment grade and high yield.

A minimum of 20% of the assets will be invested in sub-investment grade bonds, and issuers are principally from countries with investment grade rating.

The fund was originally launched in August 2011 and has assets under management of €384 million.

is one of the firms to seed the new GBP share class of the high yield fund.

Peter Sleep, senior portfolio manager at the firm, said: ‘The fund is attractive as it gives exposure the European junk bond market, which had a torrid time in 2012. 

‘The fund manager has a great track record due to its research driven process. It is attractive to us as it produces good income, but the short duration of the fund may help reduce the impact of any back up in interest rates.’

BNY completed its acquisition of WestLB Mellon last October, buying the remaining 50% stake from joint venture partner Portigon. BNY Mellon and Portigon created WestLB in 2006, each holding a 50% stake.

 

 

 

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.
Citywire TV
Play Sam Vecht: the best opportunities in frontier markets

Sam Vecht: the best opportunities in frontier markets

Blackrock's Vecht evaluates frontier markets and explains where he sees the opportunities

Play Where A-rated Pattullo is finding the best bond opportunities

Where A-rated Pattullo is finding the best bond opportunities

Henderson Global Investors head of retail fixed income explains how he is managing his fund against the surprise current monetary policy divergence.

1 Comment Play Taxicab Tenner: Allianz Global Investors' AA-rated Simon Gergel

Taxicab Tenner: Allianz Global Investors' AA-rated Simon Gergel

Our much anticpated new series is here! We hand a black cab driver a tenner and grill the manager of the 125-year Merchants trust until the meter runs out.    

Your Business: Cover Star Club

Profile: meet the duo at the heart of Hargreave Hale's succession plan

Profile: meet the duo at the heart of Hargreave Hale's succession plan

For the first time in the company's history a non-Hargreave is now at the head of the north west broker and asset manager

Wealth Manager on Twitter