BNY Mellon IM launches global equity income fund with ESG focus
BNY Mellon Investment Management is expanding its sustainable fund range with a new global equity income launch.
The BNY Mellon Sustainable Global Equity Income Fund will be managed by Newton Investment Management, an investment firm of BNY Mellon Investment Management, and is part of its UK-domiciled fund range, BNY Mellon Investment Funds.
The fund is an actively managed fund that exclusively invests in holdings that adhere to Newton Investment Management's sustainability criteria. It is managed by Nick Clay, leader of equity income, and Rob Stewart, head of responsible and charity investment, with support from the wider equity income team, including portfolio manager Andrew Mackirdy and analysts Robert Canepa-Anson and Colin Rutter.
The Fund will follow the firm's global thematic approach in aiming to identify areas of potential investment opportunity and risk. 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.
It 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 Newton Investment Management, to be launched for UK investors, and follows the launch of the BNY Mellon Sustainable Global Dynamic Bond Fund earlier this year. Other funds in the range include the BNY Mellon Sustainable Global Equity, BNY Mellon Sustainable Real Return and BNY Mellon Sustainable Sterling Bond funds.
Hilary Lopez, head of European intermediary distribution at BNY Mellon Investment Management, said: "Responsible investing has been at the heart of Newton Investment Management's approach since its foundation in 1978, and for years it has integrated ESG criteria in portfolios. 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, added: "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.
Newton Investment Management manages £3.1bn on a sustainable or ethical basis as of 30 June, 2019.
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