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
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
- -Extent of valuation asymmetry
- - Extent of downside scenario
- - Sensitivity of downside scenario
- - Risk of dividend cut
Liquidity
- - Days to trade
- - House ownership
- - % of free float
-
- Frictional costs
(normal & urgent trading)
Position size
- Compelling combination (3-5%)
- Attractive combination (1-3%)
Visit the fund centre
Meet the team
Robert Hay
Jon Bell
Resources
Back to the future
Resilient sectors in a volatile economy
Challenge and Opportunities in Global Equity Income Investing
$12+ billion in
100+ clients worldwide
100+ clients worldwide
100+ clients worldwide
100+ clients worldwide
Contact us
945450
