BNY Mellon Launches Irish-Domiciled Property Fund

Tom Burroughes

30 April 2008

BNY Mellon Asset Management has added to its Dublin-domiciled fund range with the Mellon Global Property Securities Fund. The fund is managed by a subsidiary of Philadelphia-based Urdang Capital Management, one of BNY Mellon Asset Management's specialist investment boutiques specialising in global real estate and real estate securities products. The Mellon Global Property Securities Fund aims to outperform its benchmark by 2 to 3 per cent per annum, with minimum levels of excess volatility, by taking long-only positions and identifying growth and value opportunities in exchange-listed global property securities. A portfolio of 50-75 holdings will include publicly traded companies whose principal business is the ownership, management and/or development of income-generating and for-sale properties. "Contrary to common market sentiment this is an ideal time to launch a global real estate securities fund," said Todd Briddell, chief executive officer of Urdang. "Firstly, recent market turbulence has created an attractive entry point for previously over-valued markets. In the US and UK, however, low interest rates and attractive valuations should provide a solid boost for real estate over the next 12-24 months," he said. He continued: "Secondly, high levels of economic prosperity in Asia Pacific, Latin America and commodity-rich regions are creating unprecedented real estate investment opportunities. These value and growth stories combined with investorsï¿½ heightened demand for transparency and liquidity provide a solid case for the launch of this fund."