BNY Mellon Investment Management has bolstered its debt range with the launch of a new infrastructure-focused fund, Citywire can reveal.
The BNY Mellon US Municipal Infrastructure Debt fund will seek to offer investors favorable yield while holding investment grade credit risk rating.
The Dublin-domiciled Ucits fund will be sub-advised by Standish Mellon Asset Management and will be led by Christine Todd, president and managing director of US municipal debt and insurance strategies at Standish.
The fund will aim to capture excess yield through investing predominately in taxable and US tax-exempt municipal bonds, issued to finance infrastructure sectors and projects in the US.
Commenting on the launch, Todd said: ‘There is currently a significant opportunity in US municipal debt, especially at a time when US infrastructure is expecting to receive a boost under President Trump’s administration.’
The firm has said the fund is ‘the first fund of its kind available in a Ucits structure’.
‘Many investors believe possible spending on US infrastructure will offer them an opportunity to invest in an asset class which can include high-income potential, low institutional investor penetration, strong diversification and attractive preservation of capital benefits.’