The Dreyfus Corporation (Dreyfus), part of BNY Mellon Asset Management, has launched the Dreyfus Total Emerging Markets Fund, an actively managed mutual fund that seeks to create a portfolio comprised of the most attractive opportunities in emerging markets equities, bonds and currencies.
Dreyfus, the fund’s investment adviser, will use the combined investment strategy employed by Dreyfus portfolio managers who are dual employees of Standish Mellon Asset Management Company LLC (Standish) and The Boston Company Asset Management, LLC (TBCAM), both investment boutiques of BNY Mellon Asset Management. The fund’s portfolio managers responsible for the fund’s equity investments and those responsible for fixed income investments will share asset allocation and country selection decisions. Standish’s investment strategy will be used for purposes of making decisions related to fixed income securities and currencies. TBCAM’s investment strategy will be used for purposes of making investment decisions related to equities.
The strategy is integrated since the fund’s portfolio managers will jointly assess investment opportunities in each emerging markets country by asset class as opposed to simply deciding on the overall asset allocation split for the entire portfolio and then managing the equity and fixed income sleeves separately.
"This strategy is unique," said Jon Baum (pictured) Chairman and CEO of Dreyfus. "Dreyfus Total Emerging Markets Fund offers something that you cannot get with a traditional fund-of-funds approach. The fund’s portfolio managers employ a country-by-country analysis to assess the risk and return expectations for equities, bonds and currencies. The fund’s assets are then allocated to the more attractive emerging market asset classes, countries and individual securities.
"There is not a lot of overlap between the emerging markets equity and fixed income universe – only about a 50% intersection. This integrated approach offers the potential for an expanded investment universe and, therefore, an investor has the potential to diversify its country level risk – an important factor in emerging markets investing."
To pursue its goal, Dreyfus Total Emerging Markets Fund normally invests at least 80% of its assets in the securities of emerging market issuers and other investments that are tied economically to emerging market countries. The fund’s portfolio managers have experience with investing in emerging markets equities, local currency and US dollar-denominated emerging markets bonds, and currencies. For each asset class, security selection is based on an established investment process.
Sean P Fitzgibbon, CFA, and Alexander Kozhemiakin, PhD, CFA, serve as the fund’s primary portfolio managers responsible for the fund’s equity and fixed income investments, respectively. Fitzgibbon is a senior managing director, portfolio manager, research analyst and head of the global core equity team at TBCAM. Kozhemiakin is the managing director of emerging market strategies and a senior portfolio manager at Standish. Fitzgibbon and Kozhemiakin also are employees of Dreyfus and manage the fund in that capacity.