BNY Mellon Introduces New Sustainable EM Fund
The Bank of New York Mellon Corporation
European investors will now have access to the BNY Mellon Sustainable Global Emerging Markets fund, which was previously only available in the UK.
Newton Investment Management, a thematic subsidiary of the US company with $109 billion (€113 billion) in assets under management as of June 2022, will oversee the Article 9 strategy.
Newton managers Ian Smith and Paul Birchenough will handle the new US-dollar fund, which was launched in December 2021, as well as the £8.9 million (€10 million) pound equivalent.
In the past quarter to August 2022, the UK-domiciled BNY Mellon Sustainable Global Emerging Markets fund has lost 2.1% in US dollar terms, compared with an Equity - Global Emerging Markets sector average loss of 6.8%.
The management team's strategy for capitalising on the market's "significant" opportunity will target companies that are proactive in managing social and environmental aspects to achieve sustainable returns.
"It is thought that roughly two-thirds of the $5 trillion to $7 trillion annual investment required to meet the UN Sustainable Development Goals by 2030 will need to be deployed in the developing world. Yet emerging markets represent little more than 10% of global equity indices,’ the managers said in a note.
"We believe this offers fertile ground for patient and sustainably deployed capital to have a positive effect on people’s lives, while also tapping into potentially large addressable market opportunities."