Mellon Capital Management Corp. of San Francisco, a unit of Bank of New York Mellon Corp., has launched a fund called Mellon Capital High Quality Long Corporate Bond Strategy with $100 million of assets from three clients.
The fixed-income product, developed to help pension funds protect assets against market volatility, primarily invests in high-quality, longer-term corporate bonds “that are rated at least single A and have a maturity of more than 20 years,” it said Tuesday.
The fund aims to insulate sponsors. Such “liability driven investment strategies,” Mellon Capital said, “tend to move in tandem with typical pension plan liabilities. Typically, these liabilities rise when yields on bonds decline and decrease when bond yields increase.”
Susan Kobayashi, Mellon Capital’s director of fixed income, runs the team managing the product. Mellon Capital specializes in global quantitative investment strategies. It had $152 billion of assets under management as of Dec. 31.