BNY Mellon Investment Management has announced a new global equity income fund, expanding its sustainable fund range for UK-domiciled investors. The newly launched BNY Mellon Sustainable Global Equity Income Fund represents a pattern in the industry, with multiple asset managers in recent years launching sustainable funds to suit client demand.
It is the fifth sustainable fund to be launched for UK investors by BNY Mellon Investment Management and follows the launch of the BNY Mellon Sustainable Global Dynamic Bond Fund earlier this year. Additional funds in the range include the BNY Mellon Sustainable Global Equity, BNY Mellon Sustainable Real Return and BNY Mellon Sustainable Sterling Bond funds.
The fund will be managed by Newton Investment Management, and will invest in global companies that it believes demonstrate attractive investment attributes and sustainable business practices, in order to gain both income and capital growth. Its choices of investment will also have no material unresolvable ESG issues.
Typically, it will hold fewer than 70 stocks, and will exclude companies with negative ESG profiles based on Newton Investment Management’s sustainability criteria, but may include companies with lower ESG scores that can be improved through engagement.
It will also follow Newton Investment Management’s global thematic approach by aiming to identify areas of potential investment opportunity and risk.
Nick Clay, leader of equity income, and Rob Stewart, head of responsible and charity investment will manage the fund with support from the wider equity income team. This includes portfolio manager Andrew Mackirdy alongside analysts Robert Canepa-Anson and Colin Rutter.
Hilary Lopez, head of European intermediary distribution at BNY Mellon Investment Management, emphasized the importance of client demand for the new fund.
She said: “The Global Equity Income strategy has a long track record of delivering returns to our clients with its disciplined approach to fundamentals and valuation. ESG integration is already a core part of our process and we are seeing increased demand from clients for funds that are more specifically sustainable in focus. The BNY Mellon Sustainable Global Equity Income Fund has been launched to meet these client demands.”
Nick Clay, leader of equity income at Newton Investment Management, commented on the opportunities the investment climate presented actively managed funds and strategies.
He said: “The return of volatility in markets is creating opportunities for actively managed income strategies, and it is our belief that increased volatility is here to stay through the latter part of the investment cycle. In periods such as this, it can be prudent for investors to consider a more defensive, active strategy in which ESG considerations play a key role.”
The BNY Mellon Sustainable Global Equity Income Fund is registered for distribution in the UK, and is available to both intermediary and institutional investors. Newton Investment Management manages £3.1 billion on a sustainable basis.
