BNY Mellon Asset Management has launched Real Asset Strategy, an institutional investment strategy designed for periods of rising inflation, to achieve long-term returns of 5% above the consumer price index in the US.
The Real Asset Strategy invests in inflation-sensitive equities, inflation-linked bonds and actively managed commodities.
The strategic long-term weighting of assets in the real asset strategy is: 25% in global inflation-protected securities (Treasury Inflation-Protected Securities) and similar securities issued in other countries managed by Standish Mellon Asset Management. 35% in a commodity alpha long-bias strategy, a risk-controlled commodities strategy with a volatility target of 10%, managed by Mellon Capital Management.
Another 30% in global equities of natural resources companies managed by The Boston Company Asset Management (TBCAM); 5% in equities of companies in emerging markets also managed by TBCAM; and 5% in global real estate securities managed by Urdang Securities Management.
Currently, the Real Asset Strategy is available to certain qualified institutions who become clients of The Bank of New York Mellon. Also, the underlying asset classes are managed by employees of these BNY Mellon Asset Management firms acting in their dual capacities as officers of The Bank of New York Mellon.
Jeffrey Saef, director of multi-strategy investment solutions for BNY Mellon Asset Management, said: “As part of the real asset strategy, BNY Mellon Asset Management intends to periodically review, and adjust if warranted, the allocations among these asset classes within a controlled range to take advantage of dislocations and opportunities in the marketplace.”
BNY Mellon Asset Management is the umbrella organization for The Bank of New York Mellon’s affiliated investment management firms and global distribution companies.