Investment
BNY Mellon partners for new fund, eyes Aussie retail market

The global banking giant has partnered with multi-affiliate boutique manager Pinnacle to launch a new Australian-domiciled global infrastructure fund, as it eyes the retail and adviser market.

The Pinnacle BNY Mellon Global Infrastructure Yield Fund will aim to hit 6% in gross yield per annum, at a management fee of 1.15% per annum.

It will invest in 20 to 40 global infrastructure equities, including telcos, hospitals and senior care homes, aiming to keep cash allocations to 5%.

BNY Mellon Investment Management Australia country head Phillip Filippelis said the banking giant's Australian business has, to date, focused on superannuation funds and institutional investors.

"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," he said.

BNY Mellon will act as the investment manager, with three of its investors handling the investments while Pinnacle will act as the responsible entity.

BNY Mellon's James Lydotes will be the lead portfolio manager, Brock Campbell will act as the portfolio manager while William Adams will act as the global investment strategist.

The fund intends to apply the same approach that BNY's investment team uses to manage offshore portfolios worth $1.7 billion.

"One of our key differentiators is the way we look at the infrastructure universe more broadly than a number of competitors in the market. This enables us to invest against the herd and consistently find attractive investment opportunities across different sectors and regions," Lydotes said.

State Street is acting as the fund's administrator. BNY Mellon is expected to seed the fund initially.

Minimum initial investment size is $25,000 with subsequent investment minimum of $5000.

The partnership with BNY Mellon is the $38 billion Pinnacle's third major move so far this year. In May, two former Macquaire stock pickers set up shop at Pinnacle with a new boutique firm, Firetrail Investments.

Firetrail is running two strategies, a market return absolute return strategy and a high conviction strategy. The latter already had a highly-recommended rating when it's launch was announced.

Last month, Pinnacle splashed $50 million on acquisitions, paying $4 million for a 40% equity stake in Omega Global Investors. It also agreed to pay $46 million for a 35% interest in Metrics Credit Partners.

Read more: BNY Mellon Investment Management AustraliaBrock CampbellFiretrail InvestmentsJames LydotesMacquairePhillip FilippelisPinnacle BNY Mellon Global Infrastructure Yield FundState StreetWilliam Adams
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