Paul Brain to run offshore fund for BNY Mellon

Newton’s Paul Brain is to run a new offshore global bond fund for BNY Mellon Asset Management based on his flagship onshore fixed income product.

The new Dublin-domiciled BNY Mellon Global Dynamic Bond fund is based on the flagship Newton Global Dynamic Bond fund Brain helped launch at Newton after he joined the group in 2004.

The £321m portfolio returned 36.4% since launching in April 2006.

It made 4.7% in the three months to 20 September, over double the IMA Global Bond sector's 2% average; 14.4% over one year against 10.8% from its sector peers; and 34.5% over three years versus 41.8% from rival products in the sector.

Brain, Newton's team leader for fixed income, and his team will aim to profit by investing in global sovereign debt, emerging market sovereign debt and corporate bonds.

The fund can use derivatives to take negative duration bets on government debt during periods when bond yields rise.

Newton says the allocation between various parts of bond markets will provide "most of the capital protection and potential gains".