Dreyfus, part of BNY Mellon Asset Management, has introduced two fund of funds.
The first fund, Dreyfus Satellite Alpha Fund, seeks long-term capital appreciation by allocating its assets to Dreyfus-advised mutual funds that invest in non-traditional asset classes, including commodities, currencies and real estate.
"Many individual investors are seeking a professionally managed solution that enables them to invest in non-traditional asset classes that have low correlations to traditional asset classes, especially in the wake of the recent financial crisis," says Phil Maisano (pictured), vice chairman and chief investment officer for Dreyfus and chief investment strategist for BNY Mellon Asset Management. "Dreyfus Satellite Alpha has been constructed within a 1940-Act platform to provide exposure to non-traditional asset classes such as commodities, currencies and real estate in addition to inflation-protected securities and global stocks and bonds."
The fund’s portfolio managers seek to deliver "alpha" by investing in satellite asset categories and investment strategies which generally have a lower correlation with the broad US stock and bond markets. The underlying funds are selected by the Dreyfus investment committee based on their investment objectives and management policies, portfolio holdings, risk/reward profiles, historical performance, and other factors, including the correlation and covariance among the underlying funds.
Underlying funds and BNY Mellon Asset Management multi-boutique managers include: Dreyfus Global Absolute Return managed by Mellon Capital Management; Dreyfus Inflation Adjusted Securities managed by Standish investment professionals; Dreyfus International Bond managed by Standish investment professionals; Dreyfus Global Real Estate Securities managed by Urdang Securities Management; Dreyfus Natural Resources managed by The Boston Company Asset Management investment professionals; Dreyfus Emerging Markets Debt Local Currency managed by Standish investment professionals; and Emerging Markets Opportunity managed by Blackfriars Asset Management.
The second fund, Dreyfus Diversified Global Fund, seeks long-term capital appreciation by allocating its assets to Dreyfus-advised mutual funds that invest primarily in equities issued by US and foreign companies.
"Dreyfus Diversified Global fund is distinctive among global funds; the underlying funds are managed by an array of BNY Mellon Asset Management affiliates with different points of view and investment philosophies which differentiate this fund from other global funds that only deliver a single viewpoint," Maisano says.
The fund is designed to provide diversification by investing the majority of its assets in underlying funds that provide exposure to multiple global strategies. The underlying funds are selected by the Dreyfus investment committee based on their investment objectives and management policies, portfolio holdings, risk/reward profiles, historical performance, and other factors, including the correlation and covariance among the underlying funds.
Dreyfus seeks to diversify the fund’s investments by including underlying funds that have global portfolios that focus on, but are not limited to, growth, equity income, core, real estate, sustainability and tactical asset allocation. The Dreyfus investment committee determines the underlying funds and sets the target allocations.
Underlying funds and BNY Mellon Asset Management multi-boutique managers include: Dreyfus Global Equity Income managed by Newton Capital Management; Global Alpha managed by Mellon Capital Management; Global Stock managed by Walter Scott & Partners; Dreyfus Global Sustainability managed by Mellon Capital Management; and Dreyfus Global Real Estate Securities managed by Urdang Securities Management. Another underlying fund, Dreyfus Worldwide Growth, is managed by Fayez Sarofim.
