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BNY Mellon brings US income fund to the UK

BNY Mellon brings US income fund to the UK

BNY Mellon Investment Management is to launch an onshore version of its US-domiciled $1.1 billion (£872 million) BNY Mellon Income Stock fund.

The BNY Mellon US Equity Income fund will be managed by John Bailer, who is the senior portfolio manager for US dividend portfolios at the firm’s subsidiary, The Boston Company.

The US-domiciled version of the fund, which launched in 2000, has returned 33% over three years to the end of October, compared to a sector average gain of 26%. Over one year it is up 4.9% versus 2.7%. 

The ongoing charges figure (OCF) of the fund will be 0.82%.

The company launched an Irish-domiciled version of the fund in January 2017 and it has built up $410 million of client assets.

The strategy targets a dividend yield of more than one and a half times the yield of the S&P 500 index, and it will only invest in US equities with market capitalisations above $2 billion.

Fergus McCarthy, head of UK and Ireland intermediary distribution at BNY Mellon Investment Management, said: ‘Two years ago, we decided to launch the BNY Mellon US Equity Income fund in response to the strong demand that we were seeing for income strategies with exposure to the world’s largest economy.

‘This demand continues to be evident among UK investors – particularly at a time when value stocks are at attractive levels after a significant period of growth outperformance – driving our decision to launch an onshore mirror fund.’

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