BNY Mellon Investment Management, one of the world’s largest asset managers with more than US$1.9 trillion in assets under management, today announced the launch of the BNY Mellon Sustainable Global Dynamic Bond Fund (the Fund), managed by its investment firm Newton Investment Management. It is the fifth UK-domiciled sustainable fund launched as part of Newton’s sustainable suite of products, which aim to invest in sustainable sovereign bonds, and attractive companies with sustainable business practices and no material unresolvable ESG issues.
The Fund is a sustainable version of Newton’s existing Global Dynamic Bond strategy and is the Sterling version of the Euro currency BNY Mellon Sustainable Global Dynamic Bond Fund in the Dublin-domiciled BNY Mellon Global Funds, plc range. It is an absolute-return strategy, following an unconstrained, dynamic asset-allocation approach. It also has the flexibility to use stabilising assets and hedging positions to provide downside protection.
Following Newton’s global thematic approach in seeking to identify areas of potential opportunity and risk, the Fund invests in sustainable government bonds, and bonds of companies that positively manage the material impacts of an issuer’s operation and products on the environment and society. It avoids bonds with material unresolvable ESG risks which are likely to negatively affect future performance, and does not invest in the bonds of any company that derives more than 10% of its turnover from the production and sale of tobacco.
It will be managed by Paul Brain, Trevor Holder, Carl Shepherd, Scott Freedman and Martin Chambers and will measure its performance against cash (1-month LIBOR) + 2% per annum over five years before fees. In doing so, it seeks to achieve a positive return on a rolling three-year basis.1
This fund follows the launches, of the BNY Mellon Sustainable Global Equity, Sustainable Real Return, Sustainable Sterling Bond and Sustainable Global Equity Income funds. Newton runs seven sustainable strategies in total across both the UK BNY Mellon Investment Funds domiciled range and the Dublin-domiciled BNY Mellon Global Funds, plc range.
Andrew Parry, Head of sustainable investing at Newton Investment Management said:
Responsible investing has played a crucial role in Newton’s investment processes since we were founded 42 years ago. As active owners of our clients’ investments, we aim to encourage companies to engage in long-term sustainable behaviour which can lead to better outcomes – both for clients in terms of shareholder and bondholder value and for society as a whole.
With the growing global focus on environmental, social & governance issues and their impact on investments, we know that investors are actively seeking sustainable funds across all asset classes which yield good returns.
Managed by our highly experienced fixed-income team, the BNY Mellon Sustainable Global Dynamic Bond Fund strategy builds on the existing Global Dynamic Bond franchise which has over £2bn in the UK. It is another important milestone as we expand our suite of sustainable strategies.Andrew Parry, Head of sustainable investing at Newton Investment Management
Paul Brain, Head of Fixed Income at Newton Investment Management commented:
Sustainability has been on the rise in the fixed income space over the past five years – we believe sustainable bonds can provide investors with the opportunity to direct their fixed-income investments towards a range of positive impacts. ESG factors have already been proven to have a material benefit on a company’s financial profile and we believe in-depth analysis of ESG factors, alongside issuer engagement where appropriate, can help to enhance long-term investment opportunities in this growing sector.Paul Brain, Head of Fixed Income at Newton Investment Management
The BNY Mellon Sustainable Global Dynamic Bond Fund offers investors broad access to bonds that meet Newton IM’s sustainability criteria for fixed-income investment. The assessment of ESG factors within credit analysis enhances risk mitigation, which is particularly important given the asymmetric nature of bond returns.
The BNY Mellon Sustainable Global Dynamic Bond Fund (MIF) is registered for distribution in the UK, and is available to retail, intermediary and institutional investors.
Newton Investment Management manages £4.7bn on a sustainable and ethical basis and has been a PRI (UN Principles of Responsible Investment) signatory since 2007, consistently receiving top rankings of the signatory annual assessment report, including the A+ across all equity and fixed-income categories in 2019.
Notes to editors:
About Newton Investment Management
Newton Investment Management Limited (Newton) is a London-based global investment management subsidiary of The Bank of New York Mellon Corporation. Newton’, ‘Newton Investment Management’ and/or ‘Newton IM’ brand refers to Newton Investment Management Limited. Newton is authorised and regulated by the Financial Conduct Authority, 12 Endeavour Square, London, E20 1JN and is also registered with the US Securities and Exchange Commission. Registered address, BNY Mellon Centre, 160 Queen Victoria Street, London, EC4V 4LA. Registered in England No. 01371973. With assets under management of £49.8 billion (as at 31 December 2019). Newton IM provides investment products and services to a wide range of clients, including pension funds, charities, corporations and (via BNY Mellon) individuals. News and other information about Newton is available at www.newtonim.com and via Twitter: @NewtonIM.
About BNY Mellon Investment Management
BNY Mellon Investment Management is one of the world’s largest investment managers, and one of the top U.S. wealth managers, with US$1.9 trillion in assets under management as of December 31, 2019. The firm is built around delivering to investors a “best of both worlds” approach: the expertise and world-class capability of our individual investment managers, wedded to a global geographic footprint, and guided by an unshakable commitment to financial stewardship. BNY Mellon Investment Management encompasses BNY Mellon’s affiliated investment management firms, wealth management services and global distribution companies.
About BNY Mellon
BNY Mellon is a global investments company dedicated to helping its clients manage and service their financial assets throughout the investment lifecycle. Whether providing financial services for institutions, corporations or individual investors, BNY Mellon delivers informed investment management and investment services in 35 countries. As of Dec. 31, 2019, BNY Mellon had $37.1 trillion in assets under custody and/or administration, and $1.9 trillion in assets under management. BNY Mellon can act as a single point of contact for clients looking to create, trade, hold, manage, service, distribute or restructure investments. BNY Mellon is the corporate brand of The Bank of New York Mellon Corporation (NYSE: BK). Additional information is available on www.bnymellon.com. Follow us on Twitter @BNYMellon or visit our newsroom at www.bnymellon.com/newsroom for the latest company news.
Unless otherwise specified herein, all information sourced by BNY Mellon as of 03 February 2020. This press release is qualified for issuance in the UK and is for information purposes only. It does not constitute an offer or solicitation of securities or investment services or an endorsement thereof in any jurisdiction or in any circumstance in which such offer or solicitation is unlawful or not authorized. This press release is issued by BNY Mellon Investment Management EMEA Limited (BNYMIM EMEA) to members of the financial press and media and the information contained herein should not be construed as investment advice. Registered office of BNYMIM EMEA: BNY Mellon Centre, 160 Queen Victoria Street, London, EC4V 4LA. Registered in England no. 1118580. Authorized and regulated by the Financial Conduct Authority. A BNY Mellon Company.
1 A positive return is not guaranteed and a capital loss may occur.