BNY Mellon and Maybank have rolled out a fund that aims to take advantage of the "under-researched" and "often mis-priced" small cap sector, the firms said.

BNY Mellon Investment Management has teamed up with Maybank Asset Management Group Berhad to launch a “rising stars” fund.

The fund invests in companies that are listed on “recognised exchanges” in Asia (including Japan) and with a market capitalisation of below $5 billion.

“Asia provides an appealing investment landscape with growth in the region robust, valuations attractive, along with a commitment to economic reform in many countries,” said Doni Shamsuddin, co-head of BNY Mellon Investment Management, Asia-Pacific. “Combine this with the Asian small cap sector which is under-researched and often mis-priced, making it a fertile market in which to generate alpha.”

The fund is part of BNY Mellon’s Dublin-based Mellon Global Fund range. It will be available in Singapore and US dollar share classes to accredited investors in Singapore and Hong Kong, and to retail investors in Singapore. Subject to regulatory approval, the firms are also seeking to make the fund available to Malaysian investors.

BNY Mellon Asset Management Japan will manage the Japanese small cap equities portion, and Maybank Asset Management Singapore will manage the Asia (excluding Japan) small cap portion.