BNY Mellon/Insight closes two absolute return funds to new investors

26th March 2014

Fund group BNY Mellon which incorporates Insight Investment is restricting access to two funds the Absolute Insight Equity Market Neutral Fund and the BNY Mellon Absolute Return Equity Fund from 27 March 2014.

Both funds are managed by Insight’s specialist equity team, led by Andy Cawker.  The group says the decision to limit inflows and control the capacity of the funds has been taken to protect existing investors’ interests.  It says the move will allow the investment team to retain the flexibility to meet the funds’ investment objectives and performance aims.

As of 26 March 2014, the team is managing assets totalling £2.6bn. The firm says the maximum capacity of the team is continuously assessed and prior to the point where we believe we are reaching this capacity, additional steps will be considered to further limit inflows.

Insight says it has experienced strong demand for its absolute return strategies as investors seek to minimise downside risk and generate returns which show low correlation to mainstream asset classes.  These two factors combined have meant that over recent months, Insight’s specialist equity investment team has experienced a significant increase in total assets under management.

The Absolute Insight Equity Market Neutral Fund launched in 2005. The BNY Mellon Absolute Return Equity Fund was launched in January 2011.

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