BNY Mellon subsidiary limits inflows on two funds

Water tap stopInsight Investment, which is owned by BNY Mellon, says it is putting a temporary cap on subscriptions to two absolute return funds that have seen rapid inflows.

The firm says it is monitoring assets under management of the funds, which was a combined £2.6 billion (€3.1 billion) on March 26, and will take further steps to limit inflows if their capacities are reached.

The Absolute Insight Equity Market Neutral Fund is an Ireland-domiciled Ucits fund that began life as a Cayman Islands fund in May 2005. In January 2011, Insight added the BNY Mellon Absolute Return Equity Fund, managed by the same team.

“Insight has experienced strong demand for its absolute return strategies as investors seek to minimise downside risk and generate returns which show low correlation to mainstream asset classes,” says a statement by Insight and BNY Mellon.

“These two factors combined have meant that over recent months, Insight’s specialist equity investment team has experienced a significant increase in total assets under management."

The funds are managed by the specialist equity team at Insight, led by Andy Cawker.

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