BNY Mellon Investment Management has announced in a press release the launch of its newest fund, the BNY Mellon Concentrated International ETF (BKCI). The fund is sub-advised by Walter Scott & Partners Limited, a subsidiary of BNY Mellon and a specialist in global equity.
The fund is actively managed and fully transparent and offers high concentration into international growth stocks by investing in 25–30 companies that exhibit the potential for long-term, sustainable growth. It relies on the high-conviction, disciplined approach to investing that Walter Scott is known for while investing in an area of the market that BNY Mellon believes has alpha potential.
“By delivering this strategy in an actively managed ETF, we’re able to offer a tax-efficient path for investors seeking exposure to the international equity markets,” said Andy Provencher, head of North America distribution for BNY Mellon Investment Management.
Market and investor trends have changed over the course of the pandemic, and these changes have presented a unique opportunity for investors looking for exposure internationally.
“The current environment demands a critically discerning stock-picking approach to effectively identify quality growth companies. Complex market dynamics have been challenged by policies stemming from the global pandemic, which in some cases, have obscured underlying fragilities across the global corporate sector,” said Roy Leckie, director of Walter Scott, in the press release. “The BNY Mellon Concentrated International ETF is a natural extension of our existing suite of global funds, and we’re pleased to bring Walter Scott to market in the ETF arena.”
The fund seeks long-term total return by investing primarily in equity securities of companies within developed markets — as defined by the Morgan Stanley Capital International (MSCI) Europe, Australasia, and Far East (EAFE) Index and Canada — excluding the U.S. The fund can also invest up to 20% in emerging market securities.
BKCI invests in any market cap and may sometimes invest more than 20% of total assets in companies within specific sectors or within particular countries or regions. At launch, the fund anticipates investing heavily in the information technology, healthcare, and industrials sectors.
The fund utilizes bottom-up, fundamental research to identify companies that have the potential for sustainable growth and focuses on individual selection of securities.
BKCI carries an expense ratio of 0.80%.
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