Dreyfus has launched the Dreyfus Total Emerging Markets Fund, which will invest in equities, bonds and currencies. The fund will be managed by investment boutiques of Dreyfus parent company BNY Mellon Asset Management, with Standish Mellon Asset Management running the fixed income and currencies portion of the portfolio and The Boston Company Asset Management running the equities portion.
Rather than deciding on the overall asset allocation split and then managing the equity and fixed income portions separately, the two asset managers will work together to assess individual emerging markets nations and what asset allocation to make in each.
“This strategy is unique,” said Jon Baum, chairman and chief executive officer 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.”
Baum added: “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.”