BNY Mellon merges bond funds

Two of BNY Mellon's bond funds have been merged into those run by its affiliate Insight Investment.

BNY Mellon merges bond funds


The £42.9m BNY Mellon Global Strategic Bond, managed by subsidiary Standish, will merge into the £11.3m Insight Strategic Bond fund on 15 February.
There will be no cost implication for clients in the funds.
A BNY spokesman said the move was part of its “ongoing RDR efforts” which involved “a review of our fund range”. The funds have similar aims and investment strategies, added the spokesman. 
“While the decision is subject to shareholder and regulatory approvals, the decision has been made in order to simplify and consolidate our range of fixed income strategies,” the company said.
“Both funds share a similar investment objective to provide a total return by investing in a wide range of bonds and similar debt investments issued by companies, governments and other public entities throughout the world.”
Darius McDermott, managing director of Chelsea Financial Services, said more often than not if a move like this benefits the group it will also benefit investors.
“It depends on the reason for merging them, but if one set of funds are very small it helps investors with regard to fixed costs. The interests of the group and its investors are likely to be aligned.”
The merger is subject to shareholder approval and the EGM took place on 30 January 2013, with the effective date being 15 February.



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