NEW YORK, Dec. 5, 2014 /PRNewswire/ -- The Dreyfus Corporation (Dreyfus), a BNY Mellon company, announced today that it has launched the Dreyfus Emerging Markets Debt U.S. Dollar Fund, an actively managed mutual fund. The fund's objective is to seek to maximize total return by investing in emerging market bonds and other debt instruments denominated in U.S. dollars including debt issued from government, government-related and corporate issuers.
"The expanding prominence of emerging economies caused by powerful demographic trends and fundamental improvements has attracted increasing global interest as investors seek enhanced income, growth and diversification opportunities," said Kim Mustin, BNY Mellon Investment Management's Head of North American Distribution. "Advancements in the asset class have created distinct investment opportunities for U.S. dollar and locally-denominated debt. We are pleased to add the new U.S. dollar-denominated fund to our existing emerging market debt products, such as the Emerging Market Local Currency Debt Fund and Opportunistic Emerging Markets Debt Fund."
The Fund is sub-advised by Standish Mellon Asset Management Company LLC, and is managed by Alexander Kozhemiakin, head of the emerging market debt team and senior portfolio manager at Standish and Cathy Elmore, emerging market debt portfolio manager at Standish.
The Fund's portfolio managers are supported by a dedicated team of traders and research analysts with an average of more than 14 years of industry experience and responsibility for managing approximately $12 billion in dedicated emerging markets assets. The Fund's managers employ an active investment process that uses in-depth fundamental country and credit analysis. A "top down" analysis of macroeconomic, financial and political variables guides country allocation, while a "bottom-up" analysis of the fundamental measures of an issuer's creditworthiness guides securities selection.
"We are encouraged by long-term growth prospects and moderate indebtedness of many emerging market countries as well as by business prospects of their companies," said Kozhemiakin. "In general, we believe the asset class offers attractive risk/return opportunities. However, careful selection of sovereign and corporate opportunities is key, as different emerging market issuers have different credit trajectories."
"We believe that the Fund will be attractive to investors who are looking for a diversified way to seek to take advantage of quality sovereign and corporate opportunities in emerging markets, without subjecting themselves to the heightened volatility generally associated with local-currency exposures," Kozhemiakin concluded.
Notes to Editors:
Bond funds are subject generally to interest rate, credit, liquidity and market risks, to varying degrees, all of which are more fully described in the fund's prospectus. Generally, all other factors being equal, bond prices are inversely related to interest-rate changes, and rate increases can produce price declines.
The use of derivative instruments, such as currency forwards and local interest-rate swaps, 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.
Foreign bonds are subject to special risks including exposure to currency fluctuations, changing political and economic conditions, and potentially less liquidity. The fixed income securities of issuers located in emerging markets can be more volatile and less liquid than those of issuers in more mature economies.
A decline in the value of foreign currencies relative to the U.S. dollar will reduce the value of securities held by the fund and denominated in those currencies. Foreign currencies are also subject to risks caused by inflation, interest rates, budget deficits, low savings rates, political factors and government control.
Asset allocation and diversification cannot ensure a profit or protect against loss of principal.
Cathy Elmore provides portfolio management services to the Fund for Standish through Standish Mellon Asset Management (UK) Limited, under Standish (UK)'s supervision, pursuant to an associated person's relationship.
Investors should consider the investment objectives, risks, charges and expenses of a mutual fund carefully before investing. Investors should contact their financial representative, or visit Dreyfus.com, to obtain a prospectus, or a summary prospectus, if available, that contains this and other information about a fund. Read the prospectus carefully before investing.
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 approximately $285 billion in mutual funds and other cash management vehicles. © 2014 MBSC Securities Corporation, Distributor
Standish Mellon Asset Management Company LLC, with approximately $163.8 billion of assets under management, provides investment management services across a broad spectrum of fixed income asset classes. These include corporate credit, emerging markets debt (dollar-denominated and local currency), core / core plus, tax–sensitive, short duration, stable value and opportunistic (U.S. and global) strategies. Standish also offers full service capabilities in insurance client strategies and liability driven investing. The firm includes assets managed by Standish personnel acting as dual officers of The Dreyfus Corporation and The Bank of New York Mellon and Alcentra NY, LLC personnel acting as dual officers of Standish. Standish, Dreyfus and The Bank of New York Mellon are affiliated subsidiaries of BNY Mellon.
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 Sept. 30, 2014, BNY Mellon had $28.3 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.
All information source BNY Mellon as of September 30, 2014. 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.
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SOURCE BNY Mellon