Press Releases
Mellon Adds Diversified Multi-Asset Product to Fund Range
LONDON, 4 December 2006 — Mellon Global Investments, the international distribution subsidiary of Mellon Financial Corporation, is pleased to announce the launch of a new multi-asset absolute return product, the Newton Phoenix Multi-Asset Fund, a new sub fund within its Mellon Investment Funds ICVC (MIF) range. A team of six specialist fund managers contributes to the new fund, which launched on 27 November under the leadership of Newton Investment Management's Philip Collins.
The Newton Phoenix Multi-Asset Fund began life as part of a successful unit trust* within Newton's Private Client business offering diversification between nine different asset classes. The new fund aims to outperform the return on cash** by 2% a year and has historically generated strong, positive returns in excess of its cash benchmark, but with levels of volatility that are only slightly higher than an investment in the UK government bond market. By virtue of becoming part of the Mellon Investment Funds ICVC, retail investors can access this portfolio from as little as £1,000 or £50 a month, and can also invest via ISAs or PEP transfers.
The new fund draws upon Newton's renowned expertise in managed funds but substantially builds upon the diversification offered by more traditional mixed asset funds. The Newton Phoenix Multi-Asset Fund invests in a broad spread of global equities, investment grade, index-linked and high yield bonds, money market instruments (as a proxy for cash), and via publicly quoted transferable securities, hedge funds, property, private equity and commodities. Although asset allocation is central to the fund's approach, it relies on the diversification possible both within and between such uncorrelated asset classes to generate consistent returns for substantially less volatility than mainstream equity funds.
The fund offers investors the benefit of Newton's proven thematic investment approach to equities and bonds while also providing access to less liquid asset classes such as private equity, hedge funds, commodities or property. Additionally, the portfolio has been in operation in its current form since April of 2003 and comes with an enviable performance record.
The Newton Phoenix Fund has consistently outperformed across market cycles
Commenting on the launch, Mark Allpress director of wholesale sales at Mellon Global Investments, explained, " We believe that without proper diversification many investors will now be in a precarious position following the equity bull markets of recent years.
"The launch of the Newton Phoenix Multi-Asset Fund is intended to help address this while also offering an ideal entry point for investors keen to increase their returns but put off by full equity market risk. There are also growing numbers in retirement who similarly can't afford to take such investment risk, but who still need to generate more than a cash return. We are confident that more seasoned IFAs have already recognised this and will warmly welcome this new launch as a result."
London-based Mellon Global Investments Limited is the international distributor of the investment skills and products of the asset management subsidiaries of Mellon Financial Corporation. Each of Mellon's asset managers is a specialist in its field. Their combined offering includes mainstream and high yield bond, cash, equity management, currency overlay, indexation and alternative investment management. Mellon Global Investments delivers these diverse skills to a wide and varied client base, providing a wealth of solutions. More information is available at www.mellonglobalinvestments.com.
Mellon Financial Corporation is a global financial services company. Headquartered in Pittsburgh, Mellon is one of the world's leading providers of financial services for institutions, corporations and high net worth individuals, providing asset management, private wealth management, asset servicing and payment solutions and investor services. Mellon has approximately $5.3 trillion in assets under management, administration or custody, including
*Newton Phoenix Fund.
**Cash being Libor