The fund will be managed by Newton Investment Management, an investment firm of BNY Mellon Investment Management, and is an actively managed fund that exclusively invests in holdings that adhere to NIM’s sustainability criteria. It is managed by Nick Clay (pictured), leader of equity income, and Rob Stewart, head of responsible and charity investment.
It seeks income with some capital growth by investing in global companies that demonstrate attractive investment attributes and sustainable business practices, and which have no material unresolvable ESG issues. The fund will typically 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.
This is the fifth sustainable fund managed by NIM to be launched for UK investors, and follows the launch of the BNY Mellon Sustainable Global Dynamic Bond Fund earlier this year.
Hilary Lopez, head of European intermediary distribution at BNY Mellon Investment Management, said: “Responsible investing has been at the heart of NIM’s approach since its foundation in 1978, and for years it has integrated ESG criteria in portfolios. 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 NIM, 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 intermediary and institutional investors.
NIM manages £3.1 billion on a sustainable or ethical basis as of 30 June, 2019.
