Mellon Global Investments, the international distribution subsidiary of Mellon Financial Corporation, has announced the addition of the Mellon Evolution Global Alpha Fund to its Dublin-domiciled Mellon Global Funds, plc (MGF) umbrella. Launched on 22 September, the Fund is managed by Mellon Capital Management Corporation, a Mellon subsidiary and a leading quantitative fund manager.
The Fund sets a new standard for UCITS funds by offering investors a derivative-based, hedge fund style investment strategy. It employs a systematic investment strategy known as Global Tactical Asset Allocation (GTAA), which takes advantage of relative valuation opportunities due to market inefficiencies, within and across global equity, bond and currency markets.
Mellon Capital uses sophisticated quantitative techniques to take long and short positions, seeking to capture alpha and manage risk. This is facilitated by utilising the wider investment powers granted under the European UCITS III Directive. The Fund has an annualised target return of 1 month EURIBOR + 4%* over a 3 to 5 year rolling period. In recognition of the strategy's strong track record, Standard and Poor's have already awarded the Fund a AA rating.
Commenting on the launch, Alan Mearns, head of global marketing and deputy chief executive officer of Mellon Global Investments, said: 'This innovative absolute return fund combines our recognised leadership in GTAA strategies with the wider investment powers granted under UCITS III. We believe this represents a ground breaking opportunity for investors.'
Charlie J Jacklin, president and chief executive officer of Mellon Capital Management Corporation, said: 'For over 30 years, groundbreaking research by our professionals has led us to apply financial economic theory to the investment management process. We have been managing global tactical asset allocation since 1990. This new fund applies our systematic, rigorous investment and risk management processes and aims to return consistent performance with low volatility. A representative portfolio for the Fund's strategy has outperformed its cash benchmark over the last five years with a bond-like risk profile.'