BNY Mellon aims to add emerging market fund to equity income range
BNY Mellon, the global leader in investment management and investment services, announced that later this year, and subject to receiving regulatory approval, it is proposing to launch the ‘Newton Emerging Income Fund', which will be a sub-fund of the UK domiciled BNY Mellon Investment Funds range.
The Fund will be managed by Newton, one of BNY Mellon's specialist investment management boutiques. Jason Pidcock and Sophia Whitbread will be responsible for the day-to-day running of the Fund. It is intended that the proposed Fund's portfolio structure will be transparent and straightforward. The intention of the Fund will be to provide income, payable quarterly, together with long-term capital growth by investing in emerging market equities. The investment team will focus on selecting a concentrated portfolio of about 40-50 stocks that could benefit from economic growth in emerging markets, and potentially provide a sustainable high level of income. Newton's distinctive, thematic approach to investment will provide invaluable perspective. Newton's themes represent the key forces of observable change in the global economy and provide a stimulus for debate and a focus for research.
Scott Goodsir, Managing Director, Head of UK Wholesale comments: "It is exciting to be proposing the launch of a new emerging income fund which will be co-managed by Sophia and Jason. Sophia brings knowledge of the broader emerging market region and analytical expertise to the team, having spent five years as a global research analyst focussing on the financial sector, before becoming an emerging market portfolio manager. Sophia complements Jason's equity income investment skills within the Asia-Pacific region."
Jason Pidcock, Team Leader of Asia-Pacific (ex Japan) Equities at Newton comments: "We believe that there is a great opportunity for us to provide investors with access to attractive investment opportunities in emerging markets, offering exposure to a number of a high-growth economies with strong corporate earnings potential. We believe this backdrop supports a positive outlook for sustained income growth within the region: dividend payout ratios have been stable, and the number of companies paying dividends continues to grow."
Sophia Whitbread, Investment Manager on the Emerging Markets team at Newton adds: "This is an exciting time for us. We have a strong in-house investment team covering this region. Newton has invested in emerging markets for over twenty years with emerging markets growth a core focus for our global research team. The proposed emerging income fund will be highly focussed on a compelling total return opportunity: globally, emerging markets have seen the strongest economic growth in the last decade, with a significant contribution of dividends to total returns."