Mellon Financial Corp. announced Wednesday that it had started two institutional funds.
The Mellon Equity Micro Cap Fund and Boston Company Emerging Markets Core Equity Fund both employ quantitative techniques and a bottom-up investment approach that emphasizes individual stock selection, the company said.
The micro-cap equity fund is advised by Mellon Equity Associates LLP, an investment subsidiary of Mellon Financial. It aims to create long-term capital growth through stock selection and stock exposure relative to the Dow Jones Wilshire U.S. Micro-Cap Index.
The emerging markets core equity fund is advised by Boston Co. Asset Management LLC, also a Mellon unit. It seeks long-term capital growth by investing in foreign companies represented by the Morgan Stanley Capital International Emerging Market Index.
Both portfolios require a minimum investment of $100,000. The micro-cap fund charges a 1% annual management fee, and the emerging markets fund charges 1.10%. Each also charges a 2% redemption fee for shares sold within 30 days of purchase.
Mellon Equity was established in 1987 and currently manages $21.9 billion. Boston Company was founded in 1970 and manages about $64.2 billion. Mellon has $4.9 trillion of assets under management, administration, or custody, including $808 billion under management.
