BNY Investments Newton, the specialist multi-asset and equity management arm of BNY Mellon, has launched the BNY Adaptive Risk Overlay Fund – a tail-hedging investment vehicle designed to protect portfolios from rare but severe market events. Aimed at institutional and advised intermediary investors in Denmark, Sweden, and other European markets, the fund serves as a portfolio overlay intended to mitigate the impact of extreme market drawdowns.

According to the firm, the strategy is intended to complement investors’ core holdings by mitigating risk exposure during turbulent conditions. The fund will be managed by Portfolio Manager Lars Middleton, who will draw on Newton’s expertise in both tactical and systematic hedging solutions. 

“We are increasingly hearing demand for a liquid tail-hedging solution that helps to better manage portfolio risk during times of increased uncertainty.”

“We are increasingly hearing demand for a liquid tail-hedging solution that helps to better manage portfolio risk during times of increased uncertainty,” says Gerald Rehn, Head of EMEA Distribution at BNY Investments. “With this Fund, clients can access daily liquidity and will benefit from Newton’s longstanding track record of over two decades in managing absolute return funds through volatile market periods.”

The fund launch also builds on Newton’s collaboration with Bank of America through the creation of the Newton Adaptive Risk Overlay Index (NIMARO), unveiled in late 2024. Managed by Newton’s multi-asset team and administered by Bank of America, the index is designed to offer a flexible and transparent tail-risk hedging solution. It combines Newton’s proprietary hedging framework with Bank of America’s quantitative investment strategies and execution infrastructure.