Dreyfus Fund to Use TOBAM's Patented Process to Offer Investors An Optimally Diversified Alternative to Traditional Beta Investing
NEW YORK, April 3, 2014 /PRNewswire/ -- The Dreyfus Corporation (Dreyfus), a BNY Mellon company, announced today that it has launched the Dreyfus TOBAM Emerging Markets Fund, an actively-managed emerging markets equity mutual fund. TOBAM's patented investment process, which aims to provide an optimal diversification of risk contribution, is designed to enhance an investor's risk/return profile versus traditional capitalization-weighted strategies.
"Investors who are indexing the core of their portfolio have significant unmanaged risk," said Curtis Arledge, Chief Executive Officer of BNY Mellon Investment Management. "We believe a strategy that actively manages risk, by optimally diversifying risk contribution, is a more intelligent way to build core exposure for client portfolios. By using an optimal diversification approach, TOBAM seeks to avoid benchmark biases and neutrally allocate risks, in order to produce a portfolio with less risk and greater return potential over time."
"Dreyfus TOBAM Emerging Markets Fund is the first of what is soon to be a suite of innovative offerings that provide investors with different options to traditional beta investing," Arledge concluded.
"Diversification is a powerful tool which combines a set of non-fully correlated assets, seeking results in a portfolio whose risk is lower than the weighted average of the single assets' risks," said Yves Choueifaty, President and Chief Investment Officer of TOBAM. "Unlike benchmarks, TOBAM's unique Diversification Ratio aims to eliminate bias toward high or low volatility stocks. It is long only, with no leverage, and is fully invested. We believe that TOBAM provides the 'Most Diversified Portfolio' via full diversification and neutral risk allocation."
Globally recognized for its innovative investment approach, Paris-based TOBAM, the fund's subadviser, seeks to maximize the fund's portfolio diversification in terms of various risk metrics by applying a systematic investment approach. The process tries to identify securities that have the lowest possible correlation to each other for inclusion in the fund's portfolio. The TOBAM patented Anti-Benchmark® Maximum Diversification® model attempts to construct a portfolio of securities that TOBAM believes offers the most diversification potential and avoids the concentration risk that exists in traditional market capitalization-weighted indices. The fund's portfolio managers focus on stock selection as opposed to making proactive decisions as to country, industry or sector exposure.
Asset allocation and diversification cannot ensure a profit or protect against loss of principal.
Equity funds are subject generally to market, market sector, market liquidity, issuer, and investment style risks, among other factors, to varying degrees.
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.
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.
Investors should consider the investment objectives, risks, charges and expenses of the fund carefully before investing. To obtain a prospectus, or a summary prospectus, if available, that contains this and other information about the fund, investors should contact their financial advisors or visit Dreyfus.com. Investors should read the prospectus carefully before investing.
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 $290 billion in mutual funds and other cash management vehicles.
BNY Mellon Investment Management is one of the world's leading investment management organizations and one of the top U.S. wealth managers, with $1.6 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 investments company dedicated to helping its clients manage and service their financial assets throughout the investment lifecycle. Whether providing financial services for institutions, corporations or individual investors, BNY Mellon delivers informed investment management and investment services in 35 countries and more than 100 markets. As of December 31, 2013, BNY Mellon had $27.6 trillion in assets under custody and/or administration, and $1.6 trillion in assets under management. BNY Mellon can act as a single point of contact for clients looking to create, trade, hold, manage, service, distribute or restructure investments. BNY Mellon is the corporate brand of The Bank of New York Mellon Corporation (NYSE: BK). Additional information is available on www.bnymellon.com, or follow us on Twitter @BNYMellon.
Unless otherwise noted, all information source BNY Mellon as of Dec. 31, 2013. 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 Investment 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. A BNY Mellon Company.
TOBAM is an asset management company offering innovative investment capabilities whose aim is to maximize diversification. TOBAM's flagship Anti-Benchmark strategies, supported by original research and a mathematical definition of diversification, provide clients with diversified core equity exposure, both globally and in domestic markets. The company manages over $5.5 billion via its Anti-Benchmark strategies for institutional clients worldwide. Its team includes 24 financial professionals. The Anti Benchmark method is patented in the USA and patented or patent pending in various other countries.
"TOBAM" and "Anti–Benchmark" are registered trademarks. "Diversification Ratio" is a registered trademark in France.
Patrice M. Kozlowski
+1 212 922 6030
SOURCE Dreyfus; BNY Mellon; TOBAM