Replicating the strategy in one of Mellon's institutional portfolios, the fund invests in wide number of geographies and asset classes, including derivatives, futures, swaps, options and structured notes, and also employs short selling and leveraging. Most of the portfolio will be invested in developed nations, but the fund has the option to put as much as 20% of assets in emerging markets. Sixty percent of the fund will go to stocks and the remaining 40% to fixed income.
With Baby Boomers set to retire, they will need help managing their money to last throughout their retirement, Ron O'Hanley, chief executive office of Mellon Asset Management, said at a press conference introducing the new fund. The Global Alpha Fund, primarily designed for the mass high-net-worth, is one solution that can take care of asset allocation for them, O'Hanley said.
