A compelling alternative opportunity for property investing

LONDON, April 28, 2008 — BNY Mellon Asset Management has diversified its Dublin-domiciled Mellon Global Funds (MGF) range with the addition of the Mellon Global Property Securities Fund. Launched on 23 April, the Fund is managed by a subsidiary of Philadelphia-based Urdang Capital Management (Urdang) - one of BNY Mellon Asset Management's specialist investment boutiques specialising in global real estate and real estate securities products*.

The Mellon Global Property Securities Fund aims to outperform its benchmark by 2-3% per annum, with minimum levels of excess volatility and tracking error, by taking long-only positions and identifying growth and value opportunities in exchange-listed global property securities**. A portfolio of 50-75 holdings will include publicly traded companies whose principal business is the ownership, management and/or development of income producing and for-sale real estate properties with returns deriving from top-down country allocations and bottom-up security selection. Thanks to its UCITS III structure the Fund provides daily pricing and liquidity, in stark contrast to funds holding their investments directly in physical property and offering less favourable liquidity terms.

With global property markets dominated by local factors, the Fund offers significant diversification benefits due to its low correlation to other asset classes and between regions. The Fund's strategy will have meaningful allocations to markets with above average GDP growth and population trends that foster strong real estate fundamentals, such as Hong Kong, Singapore and Western Canada. As the chart below illustrates, real estate opportunities have grown significantly in recent years, particularly outside the US market***.

Urdang have focused exclusively on property investment since 1987 and adopt an established, disciplined and proven investment process. Their unique structure combines centralised portfolio and risk management with decentralised property research provided by extensive worldwide market intelligence through a proprietary relationship with NAI Global.

Commenting on the new Fund, Todd Briddell, Chief Executive Officer of Urdang, commented: "Contrary to common market sentiment this is an ideal time to launch a global real estate securities fund. Firstly, recent market turbulence has created an attractive entry point for previously over-valued markets. In the US and UK however, low interest rates and attractive valuations should provide a solid boost for real estate over the next 12-24 months. Secondly, high levels of economic prosperity in Asia Pacific, Latin America and commodity-rich regions are creating unprecedented real estate investment opportunities. These value and growth stories combined with investors' heightened demand for transparency and liquidity provide a solid case for the launch of this Fund."

Alan Mearns, Chief Executive Officer of BNY Mellon Asset Management International, added: "This is the first Fund in the MGF range to offer access to the rapidly expanding global property market in a UCITS III structure. Global real estate securities offer significant diversification benefits and should form a part of any diversified investment portfolio."

The Bank of New York Mellon Corporation is a global financial services company focused on helping clients manage and service their financial assets, operating in 34 countries and serving more than 100 markets. The company is a leading provider of financial services for institutions, corporations and high-net-worth individuals, providing superior asset management and wealth management, asset servicing, issuer services, clearing services and treasury services through a worldwide client-focused team. It has more than $23 trillion in assets under custody and administration, more than $1.1 trillion in assets under management and services $12 trillion in outstanding debt. Additional information is available at bnymellon.com.

*The Fund is managed by Urdang Securities Management, a subsidiary of Urdang Capital Management.
**Benchmarked against FTSE EPRA NAREIT Global Real Estate Index
***EPRA

All information source BNY Mellon Asset Management International Limited as at 31 March 2008 unless otherwise stated. Not available or offered to US investors. This press release is issued by BNY Mellon Asset Management International Limited to members of the financial press and media and the information contained herein should not be construed as investment advice. Past performance is not a guide to future performance. Registered office: The Bank of New York Mellon Centre, 160 Queen Victoria Street, London, EC4V 4LA. Registered in England no. 1118580.
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