BNY Mellon Investment Management is partnering with Pinnacle Investment Management to launch a global infrastructure yield fund that targets retail investors, including SMSFs, and financial advisers.
The Pinnacle BNY Mellon Global Infrastructure Yield Fund will aim to achieve a gross yield of 6 per cent a year by investing in a broad universe of global infrastructure securities, including telecommunications, hospitals and senior care homes, as well as correctional facilities such as prisons.
Pinnacle Investment Management distribution director Matt Dell told selfmanagedsuper the gross yield is a long-term track record.
“SMSFs tend to look for yield quite often, particularly if they’re in pension mode,” Dell said.
“But SMSFs are also very overweight on the equities and cash typically. So this provides them with a diversifier in global infrastructure that’s defensive. So we think it would provide some complementary benefits to SMSFs.”
BNY Mellon Investment Management Australia country head Phillip Filippelis said: “To date our Australian business has focused on providing Australia’s largest superannuation funds and institutional investors access to our world-leading investment managers.
“Partnering with a well-respected group such as Pinnacle will enable Australian financial advisers and retail investors access to that same world-class investment expertise their larger counterparts have enjoyed.”
The fund will be sub-managed by BNY Mellon Asset Management North America Corporation, with James Lydotes as lead portfolio manager, Brock Campbell as portfolio manager and William Adams as global investment strategist.
The Australian-domiciled fund will hold about 20 to 40 securities and intends to apply the same approach as the existing offshore portfolios managed by the team currently valued at around $1.7 billion.
The fund invests across the United States, Italy, United Kingdom and other parts of Europe, Canada, and parts of the Asia-Pacific region such as China. It also invests in a telecommunications company in Israel.
BNY Mellon Investment Management has US$1.8 trillion under management.