Discover the BNY Mellon Global Equity Income Fund

The BNY Mellon Global Equity Income Fund aims to generate annual distributions and to achieve long-term capital growth by investing predominantly in equity and equity-related global securities.

The Fund will measure its performance against the FTSE World TR Index (the “Benchmark”). The Fund is actively managed, which means the Investment Manager has absolute discretion to invest outside the Benchmark subject to the investment objective and policies disclosed in the Prospectus. While the Fund’s holdings may include constituents of the Benchmark, the selection of investments and their weightings in the portfolio are not influenced by the Benchmark. The investment strategy does not restrict the extent to which the Investment Manager may deviate from the Benchmark.

The value of investments can fall. Investors may not get back the amount invested. Income from investments may vary and is not guaranteed.

$12+ billion in

100+ clients worldwide

100+ clients worldwide

100+ clients worldwide

100+ clients worldwide

Why invest?

  • The case for equity income: The defensive nature of dividend-paying companies can create an asymmetric return profile. This, combined with the significant benefits of compounding income over time, can generate strong, long-term returns and we believe this is an attractive strategy against a backdrop of lower growth and increased volatility.
  • Disciplined and sustainable approach: The Fund follows a clearly defined philosophy and process, which combines the use of Newton’s global investment themes with buy and sell yield criteria to create a disciplined and sustainable approach.
  • Concentrated portfolio pursuing a premium income level: The Fund adopts a highly committed, active approach focused on generating sustainable returns and a premium level of income. The discipline creates a differentiated portfolio and the number of stocks held in the portfolio will typically range from 40 to 70.

Process: enhancing the power of dividends

1. Strict buy & sell criteria

  • Imposes valuation discipline
  • Compound a higher yield
  • Protects against bias

2. Dividend sustainability

  • Thematic support
  • Bottom-up fundamental analysis
  • Positive capital allocation (ESG)

3. Valuation Margin of safety

  • Asymmetric risk/return profile
  • Detailed scenario analysis
circles

Controversy required

Troubled compounding machines

  • High returns on capital, good cash conversion
  • Temporary problems mistaken for permanent
  • Power of compounding underappreciated

ex-growth cash generators

  • High returns on capital, good cash conversion
  • Growth disappeared
  • Longevity of returns on capital underappreciated

capital intensity

  • More modest returns on capital
  • Ability to consistenly deploy capital at a return in excess of cost of capital

profitability transformation

  • Cyclical, inconsistent returns on capital
  • Underearning
  • Not priced for a return to normal

Framework for decision making

Bucket of controversy

TROUBLED COMPOUNDING MACHINES

EX-GROWTH CASH GENERATORS

CAPITAL INTENSITY

PROFITABILITY TRANSFORMATION

Process insights

BUYING THE CONTROVERSY

downside

Liquidity

Position size

Resources

Back to the future

After a knock-out 12 months for equity income, the higher inflation, higher interest-rate environment heralds a return of more ‘normal’ market conditions; a focus on fundamentals is back in vogue, explains Jon Bell, portfolio manager in Newton Investment Management’s global equity income team.

Equity Income,Fundamentals,Global Equity,Inflation,Interest Rates

Resilient sectors in a volatile economy

BNY Mellon US income manager John Bailer outlines some of the sectors he thinks are less prone to the whims of the ever-changing global economy.

Economy,Global,Volatile

Challenge and Opportunities in Global Equity Income Investing

Jim Lydotes, the deputy CIO of Equities and the head of the income team at Newton Investment management assesses the outlook for equity income investing globally.

Income,Newton
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$12+ billion in

100+ clients worldwide

100+ clients worldwide

100+ clients worldwide

100+ clients worldwide

Contact us

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