BNY Mellon Investment Firm Picked for $350 Million Mandate in Levered Asset Allocation Strategy
SAN FRANCISCO and LONDON, July 12, 2011 /— Mellon Capital Management, part of BNY Mellon Asset Management, has been selected by the Municipal Employees Retirement System (MERS) of Michigan to manage $350 million in Mellon Capital's Tangent-Added® strategy, an asset allocation strategy that seeks to outperform the Standard & Poor's 500 ® Index.
The strategy allocates among U.S. stocks, Treasury bonds and cash up to a maximum 150 percent long exposure with a risk profile designed to be comparable to an all-equities strategy. While the Tangent-Added® strategy uses leverage, its goal is to mitigate the downside risks of leverage through the use of call options for exposure above 100 percent.
"Mellon Capital's long performance history with tactical asset allocation and its value-added partnership approach is a successful match for our equity program," said Jeb Burns, chief investment officer of MERS. "We believe selecting investment managers with innovation, insight and discipline, like Mellon Capital, is much more important than fitting our investment managers into style boxes that constrain their ability to prudently react to changing market conditions."
"We are pleased that the Municipal Employees Retirement System of Michigan has selected our Tangent-Added® strategy and expect the relationship to be much broader as we become MERS' trusted advisor," said Gabriela Parcella, chief executive officer of Mellon Capital. "We managed client assets in Tangent-Added® strategies for over two decades and believe our more-transparent and liquid Tangent-Added® strategies are particularly attractive to institutional investors seeking excess returns in a low-return environment."
Mellon Capital manages approximately $29.9 billion in its asset allocation strategies, including assets managed as dual officers and overlays.
"Standard & Poor's 500®" is a trademark of McGraw-Hill, Inc and has been licensed for use by BNY Mellon (together with its affiliates and subsidiaries). The provider of this index is not affiliated with Mellon Capital Management; does not endorse, sponsor, sell or promote the investment strategy mentioned herein; and makes no representation regarding the advisability of investing in the strategy described herein.
Founded in 1983 by innovators in the investment management field, Mellon Capital Management Corporation applies a disciplined and analytical approach to global investment management strategies. The firm has $229 billion in assets under management, including assets managed by dual officers of Mellon Capital Management Corporation, The Bank of New York Mellon and The Dreyfus Corporation, and $9.7 billion in overlay strategies. Additional information about Mellon Capital is available at www.mcm.com. It is part of BNY Mellon Asset Management, one of the world's largest asset managers.
BNY Mellon Asset Management is one of the world's leading asset management organizations, encompassing BNY Mellon's affiliated investment management firms and global distribution companies. Information about BNY Mellon Asset Management can be found at www.bnymellonam.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 $25.5 trillion in assets under custody and administration and $1.2 trillion in assets under management, services $11.9 trillion in outstanding debt and processes global payments averaging $1.7 trillion per day. BNY Mellon is the corporate brand of The Bank of New York Mellon Corporation (NYSE: BK). Additional information is available at www.bnymellon.com.