Global investment firm BNY Mellon has set up an infrastructure fund for investors in the UK.
The $1.8trn (€1.55trn) asset manager BNY Mellon Investment Management has launched The Boston Company Global Infrastructure Income Fund.
The fund - which will be managed by Jim Lydotes and Brock Campbell at The Boston Company - will mirror the $1.5bn global infrastructure dividend focus equity strategy available in the US, the manager said.
The Boston Company is part of BNY Mellon Asset Management North America, a specialist multi-asset investment management firm dedicated to serving sophisticated investors globally.
BNY Mellon said 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.
“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,” it said.
Kenneth Tomlin, the head of UK institutional distribution at BNY Mellon Investment Management, said: “The launch of The Boston Company Global Infrastructure Income Fund marks the first thematic fund launch in our onshore range.
“It responds to the increasing need for liquid infrastructure exposure in the UK’s Defined Contribution market. The lingering low interest rate environment is creating the need for viable, income generating solutions to take the place of traditional asset classes.”
Lydotes, a senior portfolio manager at The Boston Company, said: “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 that successful global investing is achieved through rigorous research, security selection and sustainability – all characteristics that this Fund encompasses.”