Global asset manager BNY Mellon Investment Management has launched a second thematic fund in Europe.
The $1.8trn (€1.55trn) asset manager said it has set up BNY Mellon Global Infrastructure Income Fund. Earlier this month, the manager also launched The Boston Company Global Infrastructure Income Fund for investors in the UK.
BNY Mellon Global Infrastructure Income Fund will be available to investors in Denmark, Germany, France, Italy, Spain, Switzerland, Netherlands and the UK, amongst others.
The fund is being managed by Jim Lydotes and Brock Campbell at The Boston Company, a brand of BNY Mellon Asset Management North America.
BNY Mellon said the fund will mirror the investment team’s $1.5bn global infrastructure dividend focus equity strategy available in the US.
The fund aims to maximize total returns from income and capital growth by investing in a concentrated portfolio of 20 to 40 traditional and non-traditional listed infrastructure companies globally, the manager said.
It seeks to gain exposure to a wide universe of infrastructure opportunities which the investment manager believes are poised to benefit from economic, social and environmental demands.
This includes traditional infrastructure sectors such as transport, energy and utilities as well as non-traditional communication and social sectors such as satellites, hospitals and senior care homes, the manager said.
Olivier Cassin, head of institutional distribution for Europe at BNY Mellon Investment Management, said: “The launch of the BNY Mellon Global Infrastructure Income Fund marks the second thematic fund launch in our offshore range this year.
Cassin said the lingering low-interest-rate environment is creating the need for viable, income-generating solutions to take the place of more traditional asset classes.
”This fund is a concentrated, high-conviction global equity portfolio that aims to deliver a high yield with significantly less volatility and lower drawdown.”
Lydotes, a senior portfolio manager at The Boston Company, said: “The opportunities to gain exposure to infrastructure are extensive and, we believe, will only continue to grow. There is an increasing need to update aged infrastructure, invest in emerging energy technologies and support both rising and maturing populations across the world.
”This is a research-driven, risk-aware strategy that balances the need for top-tier dividend and capital appreciation, providing a unique blend of high yield and growth. We believe successful global investing is achieved through rigorous research, security selection and sustainability – all characteristics that this Fund encompasses.”