BNY Mellon's Alcentra to launch floating rate income fund

BNY Mellon subsidiary Alcentra is set to launch the Alcentra European Floating Rate Income fund early next year.

The manager will look for opportunities in senior secured loans and floating rate senior secured bonds issued by European corporates. The fund is targeting a quarterly dividend of 5.5% per annum in its first year. Alcentra aims to raise £150m for the fund, which will invest in 60 stocks across 15 industries, with a 5% maximum investment in any one security. The fund will be available in both sterling and euro currency share classes. "We believe market conditions offer an extraordinary opportunity for investors," said David Forbes-Nixon, chairman and chief executive of Alcentra. ...