Announcing the Proposed Launch of the Newton Emerging Income Fund
LONDON, 23 July 2012 — 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."
The value of investments and the income from them is not guaranteed and can fall as well as rise due to stock market and currency movements. When you sell your investment you may get back less than you originally invested.
The 'Newton Emerging Income Fund' is a proposed product. No assurance is given that the Fund will be launched nor that it will achieve its investment objectives. Should the fund be launched it may be materially different to the terms outlined herein.
Newton* is a London-based global asset management subsidiary of The Bank of New York Mellon Corporation and part of BNY Mellon. With assets under management of more than £47.5 billion, including assets managed by Newton Investment Management Limited as dual officers of Newton Capital Management Limited and The Bank of New York Mellon, Newton's group of affiliated companies provides a broad range of award-winning investment products and services to individuals, pension funds, charities and corporations. News and other information about Newton is available at www.newton.co.uk or follow us on Twitter @NewtonIM.
BNY Mellon Investment Management is one of the world's leading investment management organizations and one of the top U.S. wealth managers, with $1.3 trillion in assets under management. It encompasses BNY Mellon's affiliated investment management firms, wealth management services and global distribution companies. More information can be found at www.bnymellon.com.
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 $27.1 trillion in assets under custody and administration and $1.3 trillion in assets under management, services $11.5 trillion in outstanding debt and processes global payments averaging $1.4 trillion per day. BNY Mellon is the corporate brand of The Bank of New York Mellon Corporation. Additional information is available on www.bnymellon.com or follow us on Twitter @BNYMellon.
Unless otherwise stated, all other information source BNY Mellon Asset Management Limited as at 30 June 2012. 'Newton' refers to the following group of affiliated companies: Newton Investment Management Limited, Newton Capital Management Limited, Newton Capital Management LLC, Newton International Investment Management Limited and Newton Fund Managers (C.I.) Limited. NCM LLC personnel are supervised persons of NCM Ltd and NCM LLC does not provide investment advice, all of which is conducted by NCM Ltd. Except for Newton Capital Management LLC and Newton Capital Management Limited, none of the other Newton companies offer services in the U.S. In addition, AUM for Newton may include assets managed by the firm's officers as dual officers or employees of The Bank of New York Mellon and assets of wrap fee account(s) and high net worth client model(s) for which Newton Capital Management Limited provides advice in the form of non-discretionary model portfolios. All information relating to Newton and the proposed 'Newton Emerging Income Fund 'has been prepared by Newton for presentation by BNY Mellon Asset Management International Limited (BNYMAMI). Any views and opinions contained in this document are those of Newton at the time of going to print and are not intended to be construed as investment advice. BNYMAMI and its affiliates are not responsible for any subsequent investment advice given based on the information supplied. The 'Newton Emerging Income Fund' is a proposed product. No assurance is given that the proposed Fund will be launched nor that it will achieve its investment objectives. Should the proposed Fund be launched it may be materially different to the terms outlined herein. The proposed Fund may not be registered for sale in all markets. There is no guarantee that the proposed Newton Emerging Income Fund will achieve its objective. This Fund, if launched, will invest in international markets which means it will be exposed to changes in currency rates which could affect the value of the Fund. A fall in the Asia Pacific markets may have a significant impact on the value of the Fund because it will primarily invest in these markets. The Fund may use derivatives to reduce costs and/or the overall risk of the Fund (i.e. Efficient Portfolio Management (EPM)). Derivatives involve a level of risk, however, for EPM, they should not increase the overall riskiness of the Fund. The proposed Fund will invest in emerging markets. These markets have additional risks due to less developed market practices. A fall in the value of a single investment may have a significant impact on the value of the Fund because it typically invests in a limited number of investments. It is intended that the proposed Fund takes its charges from the capital of the Fund. Investors should be aware that there is potential for capital erosion if insufficient capital growth is achieved by the Fund to cover the charges. Capital erosion may have the effect of reducing the level of income generated. The proposed Newton Emerging Income Fund is a proposed sub-fund of BNY Mellon Investment Funds, an investment company with variable capital (ICVC) incorporated in England and Wales under registered number IC27 and authorised by the Financial Services Authority. BNY Mellon Fund Managers Limited (BNY MFM) is the Authorised Corporate Director. BNY Mellon Fund Managers Limited, 160 Queen Victoria Street, London EC4V 4LA. Registered in England No. 1998251. Authorised and regulated by the Financial Services Authority. The investment adviser of the Newton sub-funds is Newton Investment Management Limited. A more detailed list of all risks applicable to the proposed Fund will be set out in the proposed Fund's Prospectus.
This press release is qualified for issuance in the UK 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 authorised. This press release is issued by BNY Mellon Asset Management International Limited (ex-US/Canada) to members of the financial press and media and the information contained herein should not be construed as investment advice. Registered office of BNY Mellon Asset Management International Limited: BNY Mellon Centre, 160 Queen Victoria Street, London, EC4V 4LA. Registered in England no. 1118580. Authorised and regulated by the Financial Services Authority. A BNY Mellon CompanySM