A turbulent year in emerging markets has not deterred Dreyfus Corporation, a subsidiary of BNY Mellon, as it launches an equity mutual fund in the notoriously-volatile regions.

A turbulent year in emerging markets has not deterred Dreyfus Corporation, a subsidiary of BNY Mellon, as it launches an equity mutual fund in the notoriously-volatile regions.

The Dreyfus Global Emerging Markets Fund will invest in emerging market countries with fellow BNY Mellon-subsidiary Newton Capital Management as the fund’s sub-advisor.

Despite the precarious nature of emerging markets at present, New York-based Dreyfus hopes that Newton’s 20-year experience in emerging markets will help the fund succeed, with a strategy based on long-term investment.

“The fund seeks to capture the growth available in emerging markets through a high-conviction actively-managed portfolio, which uses Newton's investment themes to guide its long-term approach, together with strong fundamental stock-picking skills to not only find the best companies in which to invest, but also to identify those sectors and industries that are best avoided,” Helena Morrissey, chief executive of Newton said.

Taking control of the fund will be portfolio managers Robert Marshall-Lee and Sophia Whitbread at Newton. The fund is set to invest at least 80 per cent of its net assets in common stocks and other equity securities or derivatives in emerging market countries represented in the Morgan Stanley International Emerging Markets Index.

Despite the rocky times emerging markets have battled over the past year, Dreyfus is not the first firm to launch a fund in the region. Since January, BlackRock, Alliez Global and Fundsmith all aimed for profits as they swooped in on the volatile markets.