BNY Mellon is set to debut its Meriten Investment Management boutique in the UK with the launch of a new European equity fund.
Meriten is a German-based investment management company that has been a wholly owned subsidiary of BNY since it bought out the remaining 50 per cent of its 50/50 joint venture with Portigon in 2012.
BNY is now gearing up to launch the Meriten Dynamics Europe ex-UK Equity fund in the UK later this year.
The fund will be run by lead portfolio managers Stefan Braun and Karsten Seier, who will be supported by a team of more than 45 research analysts.
The vehicle will be domiciled in the UK and based on the Europe-focused strategy that Meriten has been running in its home market for the past eight years.
The firm said the strategy had delivered annualised outperformance of its benchmark of 1.9 per cent since its launch in November 2005.
BNY said the fund’s strategy should result in a “risk-controlled portfolio with a tracking error around 2 per cent to 3 per cent and a beta to the market of 0.95”.
Given the quantitative nature of the process, BNY will look to price the fund somewhere between the typical costs associated with active and passive equity funds.
BNY has brought several of its subsidiaries to the retail market. Newton Investment Management and Insight Investments are already well established in this country, with funds from the likes of The Boston Company and Walter Scott & Partners also domiciled in the UK.