BNY Mellon Said To Shutter Absolute Return Fund Following Large Redemption

Nov 3 2017 | 10:15pm ET

Financial services giant BNY Mellon is reportedly closing the liquid alternative version of its BNY Mellon Absolute Insight fund following a significant redemption from a large shareholder. 

The fund will close on December 1, according to an article in Citywire. It sought the gross return of the 1-month EURIBOR benchmark rate plus 4-6% on a rolling annualized 5-year basis, the article said. It pursued this via a number of strategies, including equity, credit, currency and global macro positions.

“Following the redemption of a large shareholder, the size of the fund now prevents it from achieving the economies of scale in ongoing operating costs and hinders it from accessing certain opportunities relevant to its investment strategy,” A BNY Mellon spokesperson was quoted as saying.

The Dublin-domiciled fund launched with €90 million in August 2014 as an UCITS-compliant vehicle and was passported for sale in most European and Scandinavian nations. 

According to a fact sheet dated September, the fund had €53 million in AUM remaining, and the redemption reportedly took assets down to €22 million. 

BNY Mellon has told investors of its plan to close the fund and will clients of the closure and will bear the related costs, the article added. 

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