BNY Mellon Asset Management introduces a global equity 130/30 UCITS III Fund with daily pricing and liquidity

LONDON, April 10, 2008 — BNY Mellon Asset Management has expanded the choice of funds within its Dublin-domiciled Mellon Global Funds (MGF) range with the launch of its first global 130/30 strategy. The Mellon Global Extended Alpha Fund is managed by Mellon Capital Management — one of BNY Mellon Asset Management's specialist active asset managers focused on fundamentally based global quantitative strategies.

The Mellon Global Extended Alpha Fund seeks to return 3% above the MSCI World Index by targeting 130% long and 30% short exposure* to the global equity markets through the use of equity derivatives and offers a standard overall market risk (or beta) of one. A portfolio of between 350-400 stocks will be diversified across a wide range of countries, sectors and currencies, using Mellon Capital's valuation-based quantitative approach, which ranks stocks from the most to the least attractive. Underpinning this innovative approach to stock selection is a robust risk management framework, which is a fully integrated part of the overall portfolio construction process. Initially available in the UK and Ireland, the Fund will be available to European investors following registration in local markets.

Warren Chiang, managing director, Active Equity Strategies, at Mellon Capital explained: "We are very pleased to be offering our first 130/30 portfolio within a global equity framework. The ability to effectively short individual stocks results in more efficient alpha generation. At Mellon Capital we attempt to harness alpha in a slightly different way than other quantitative managers by placing emphasis on fundamentals and economic intuition, rather than depending on more empirical methods. We believe our forward looking approach allows us to perform strongly in different market environments."

Commenting on the new launch, Alan Mearns, chief executive of BNY Mellon Asset Management Limited, said: "With a track record of managing active equity since 1991 and long/short equity strategies since 2002, Mellon Capital stands out as one of the few managers in this field with proven experience. The team's ability to add value through skilled stock picking and their rigorous risk management system make them the perfect choice of manager for this strategy."

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 $11 trillion in outstanding debt. Additional information is available at bnymellon.com.

Mellon Capital was founded in 1983 by innovators in the investment management field and specialises in global quantitative investment strategies. As of December 31, 2007, the firm has $211.6 billion in assets under management, including assets managed in overlay strategies ($29.5 billion) and including assets managed as dual officers of Mellon Bank, N.A., The Dreyfus Corporation, and The Bank of New York. Additional information about Mellon Capital is available at www.mcm.com.

* Exposure to the global equity markets will be achieved via direct investments in equity securities as well as through the use of equity derivatives.
All information source BNY Mellon Asset Management International Limited as at 31 December 2007 unless otherwise stated. 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. Not available or offered to U.S. investors. 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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