Two BNY Mellon Asset Management Boutiques Collaborate in Emerging Markets Strategy Encompassing Equities, Bonds, Currencies
The Dreyfus Corporation (Dreyfus), part of BNY Mellon Asset Management, announced today that it has launched the Dreyfus Total Emerging Markets Fund, an actively managed mutual fund that seeks to create a portfolio comprised of the most attractive opportunities in emerging markets equities, bonds and currencies.
Dreyfus, the fund’s investment adviser, will use the combined investment strategy employed by Dreyfus portfolio managers who are dual employees of Standish Mellon Asset Management Company LLC (Standish) and The Boston Company Asset Management, LLC (TBCAM), both investment boutiques of BNY Mellon Asset Management. The fund’s portfolio managers responsible for the fund’s equity investments and those responsible for fixed income investments will share asset allocation and country selection decisions. Standish’s investment strategy will be used for purposes of making decisions related to fixed income securities and currencies. TBCAM’s investment strategy will be used for purposes of making investment decisions related to equities.
The strategy is integrated since the fund’s portfolio managers will jointly assess investment opportunities in each emerging markets country by asset class as opposed to simply deciding on the overall asset allocation split for the entire portfolio and then managing the equity and fixed income sleeves separately.
“This strategy is unique,” said Jon Baum, Chairman and CEO of Dreyfus. “Dreyfus Total Emerging Markets Fund offers something that you cannot get with a traditional fund-of-funds approach. The fund’s portfolio managers employ a country-by-country analysis to assess the risk and return expectations for equities, bonds and currencies. The fund’s assets are then allocated to the more attractive emerging market asset classes, countries and individual securities.”
“There is not a lot of overlap between the emerging markets equity and fixed income universe – only about a 50% intersection,” Baum continued. “This integrated approach offers the potential for an expanded investment universe and, therefore, an investor has the potential to diversify its country level risk – an important factor in emerging markets investing.”
To pursue its goal, Dreyfus Total Emerging Markets Fund normally invests at least 80% of its assets in the securities of emerging market issuers and other investments that are tied economically to emerging market countries. The fund’s portfolio managers have experience with investing in emerging markets equities, local currency and U.S. dollar-denominated emerging markets bonds, and currencies. For each asset class, security selection is based on an established investment process.
Sean P. Fitzgibbon, CFA, and Alexander Kozhemiakin, Ph.D., CFA, serve as the fund’s primary portfolio managers responsible for the fund’s equity and fixed income investments, respectively. Fitzgibbon is a senior managing director, portfolio manager, research analyst and head of the global core equity team at TBCAM. Kozhemiakin is the managing director of emerging market strategies and a senior portfolio manager at Standish. Fitzgibbon and Kozhemiakin also are employees of Dreyfus and manage the fund in that capacity.
For further information on Dreyfus Total Emerging Markets Fund, contact 1-800-554-4611.
-The ability of the fund to achieve its investment goal depends, in part, on the ability of the fund’s portfolio managers to allocate effectively the fund’s assets among emerging market equities, bonds and currencies. There can be no assurance that the actual allocations will be effective in achieving the fund’s investment goal.
-Equity funds are subject generally to market, market sector, liquidity, issuer, and investment style risks, among other factors, to varying degrees.
-Bond funds are subject to interest rate, credit, liquidity, call, derivative and market risks in varying degrees. Generally, bond prices move in the opposite direction of interest rate changes.
-Investing internationally involves special risks, including changes in currency exchange rates, political, economic and social instability, a lack of comprehensive company information, differing auditing and legal standards and less market liquidity. These risks are generally greater with emerging market countries than with more economically and politically established foreign countries.
-Because the fund invests primarily in emerging markets issuers, the fund’s performance is expected to be closely tied to social, political and economic conditions within those markets and to be more volatile than the performance of more geographically diversified funds.
-Investments in foreign currencies are subject to the risk that those currencies will decline in value relative to the U.S. dollar, or, in the case of hedged positions, that the U.S. dollar will decline relative to the currency being hedged. Foreign currencies are also subject to risks caused by inflation, interest rates, budget deficits and low savings rates, political factors and government interaction and control.
-The use of derivative instruments, such as options, futures and options on futures, forward contracts, swaps, options on swaps, and other credit derivatives, involves risks different from, or possibly greater than, the risks associated with investing directly in the underlying assets. A small investment in derivatives could have a potentially large impact on the fund’s performance.
For more complete information on the fund, including investment risks associated with an investment in the fund, please refer to the fund’s prospectus.
Notes to Editors:
The Dreyfus Corporation, established in 1951 and headquartered in New York City, is one of the nation’s leading asset management and distribution companies, currently managing more than $400 billion in mutual funds and separately managed accounts.
Standish Mellon Asset Management Company LLC, with $79 billion of assets under management, provides investment management services across a broad spectrum of fixed income asset classes. These include corporate credit (investment-grade and high-yield), emerging markets debt (dollar-denominated and local currency), core / core plus and opportunistic (U.S. and global) strategies. Of its total assets under management, $8.5 billion constitutes emerging market debt mandates. Standish also offers full service capabilities in Insurance and Global Workout Solutions. The firm also includes assets managed by Standish personnel acting as dual officers of The Dreyfus Corporation and The Bank of New York Mellon.
The Boston Company Asset Management, LLC, a BNY Mellon Asset Management investment boutique, manages $39 billion in assets for more than 450 clients worldwide. Of its total assets under management, $10.5 billion constitutes emerging market mandates. The firm specializes in providing a broad range of actively managed U.S., global, emerging markets and alternative products with a fundamentally based approach to security research implemented in a consistent and disciplined fashion. It provides investment management services for corporate, public, mutual funds and Taft-Hartley retirement plans, endowments and foundations. The firm also includes assets managed by The Boston Company personnel acting as dual officers of The Dreyfus Corporation and The Bank of New York Mellon.
BNY Mellon Asset Management is the umbrella organization for BNY Mellon’s affiliated investment management firms and global distribution companies.
BNY Mellon is a global financial services company focused on helping clients manage and service their financial assets, operating in 36 countries and serving more than 100 markets. BNY Mellon is a leading provider of financial services for institutions, corporations and high-net-worth individuals, offering superior investment management and investment services through a worldwide client-focused team. It has $25.0 trillion in assets under custody and administration and $1.17 trillion in assets under management, services $12.0 trillion in outstanding debt and processes global payments averaging $1.6 trillion per day. BNY Mellon is the corporate brand of The Bank of New York Mellon Corporation (NYSE: BK). Additional information is available at www.bnymellon.com.
All information source BNY Mellon Asset Management as of December 31, 2010. This press release is qualified for issuance in the US only and is for information purposes only. It does not constitute an offer or solicitation of securities or investment services or an endorsement thereof in any jurisdiction or in any circumstance in which such offer or solicitation is unlawful or not authorized. This press release is issued by BNY Mellon Asset Management to members of the financial press and media and the information contained herein should not be construed as investment advice. Past performance is not a guide to future performance.
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