- There is no guarantee that the Fund will achieve its objectives.
- This Fund invests in international markets which means it is exposed to changes in currency rates which could affect the value of the Fund.
- Derivatives are highly sensitive to changes in the value of the asset from which their value is derived. A small movement in the value of the underlying asset can cause a large movement in the value of the derivative. This can increase the sizes of losses and gains, causing the value of your investment to fluctuate. When using derivatives, the Fund can lose significantly more than the amount it has invested in derivatives.
- Investments in bonds/money market securities are affected by interest rates and inflation trends which may negatively affect the value of the Fund.
- Bonds with a low credit rating or unrated bonds have a greater risk of default. These investments may negatively affect the value of the Fund.
- The issuer of a security held by the Fund may not pay income or repay capital to the Fund when due.
- If this share class is denominated in a different currency from the base currency of the Fund. Changes in the exchange rate between the share class currency and the base currency may affect the value of your investment.
- For hedged share classes this share class uses techniques to try to reduce the effects of changes in the exchange rate between the share class currency and the currency of the underlying investments of the Fund. These techniques may not eliminate all currency risk. The hedging range for this share class is 99-101% of the net asset value of the share class
- Emerging Markets have additional risks due to less-developed market practices.
- Contingent Convertible Securities (CoCo’s) convert from debt to equity when the issuer’s capital drops below a pre-defined level. This may result in the security converting into equities at a discounted share price, the value of the security being written down, temporarily or permanently, and/or coupon payments ceasing or being deferred.
- The insolvency of any institutions providing services such as custody of assets or acting as a counterparty to derivatives or other contractual arrangements, may expose the Fund to financial loss.
- A complete description of risk factors is set out in the Prospectus in the section entitled “Risk Factors”
Why global credit?
Credit investing will not be without risk, particularly in uncertain economic conditions in the market have changed markedly over the last year, so we believe there are many features that mean considering credit now may make sense.
The potential for income and capital gains
Amid rising yields and spreads (the difference in yield between corporate bonds and other fixedincome instruments with the same maturity dates), there is the potential to generate a meaningful income for the first time in over a decade. Should yields decline over time, it is likely that investors could also enjoy capital gains.
Greater scope to capture relative valuation opportunities
Market turbulence and volatility may distort investors’ views about the accurate pricing of individual bonds and their issuers. This provides an opportunity for our active managers to capture relative value opportunities..
Peak interest rates may be approaching
When inflation eventually moderates and the economic backdrop improves, companies may look to expand and issue new tranches of corporate bonds.
* For BNY Mellon Global Funds, plc, none of the sub-funds which are recognised schemes in Singapore constitute ESG Funds (as defined in the MAS’s Circular No. CFC 02/2022), except for BNY Mellon Future Earth Fund and BNY Mellon Sustainable Global Emerging Markets Fund. Other funds which are not registered for offering to retail investors may or may not constitute ESG funds (where defined in the relevant local jurisdiction).
Why BNY Mellon Global Credit Fund?
We have identified five broad areas that are prospective sources of added value and risk. The level of emphasis on each can vary at different points in time according to market conditions. Our fund managers combine top-down macroeconomic views with high-conviction bottom-up security selection.
Note: PR1-4 refers to our rating of performance potential. Those rated PR1-2 have higher alpha potential and may be held as an overweight position. PR3 represents those which appear to have fair fundamentals and valuations, typically held at neutral weight, expected to perform in line with the market overall. PR4 are those with lower alpha potential, typically held as underweight positions
Strengths of our fund manager
BNY Mellon Investment Management’s fixed-income team is distinguished by its specialist expertise, industry knowledge and long-term track record. Its investment philosophy focuses on precision and diversification, seeking consistent risk-adjusted returns from a globally opportunity set.
Risk is actively managed, aiming to ensure that sources of added value are diverse, and the Fund’s performance is not dominated by a single, or a few, holdings.
About the Fund
Available share classes
Past performance is not indicative of future performance. The value of investments and the income from them is not guaranteed and can fall as well as rise due to stock market and currency movements. When you sell your investment you may get back less than you originally invested.
This Fund is a sub-fund under BNY Mellon Global Funds, plc (the “Responsible Person”), which is an open-ended umbrella investment company with variable capital incorporated in Ireland with segregated liability between sub-funds and authorised by the Central Bank of Ireland. The Fund is recognised for retail distribution in Singapore under Section 287 of the Securities and Futures Act 2001. The Responsible Person has appointed BNY Mellon Investment Management Singapore Pte. Limited (“BNYM-IM-SG”) as its Singapore Representative. The prospectus in relation to the Fund is available and a copy of it may be obtained from http:// www.bnymellonimapac.com/sg/funds or at BNYM-IM-SG’s distributors. A potential investor should read the prospectus before deciding whether to subscribe or purchase units in the Fund. The value of the units in the Fund and the income accruing to the units, if any, may fall or rise. The net asset value of the Fund is likely to have a high volatility due to its investment policies or portfolio management techniques.
This document shall be used in Singapore only and shall not be used for the purpose of an offer or solicitation in any other jurisdiction or in any circumstances in which such offer or solicitation is unlawful or not authorised. All information herein is made for information purposes only and subject to change at any time without notice, and should not be construed as investment advice or recommendation.
Investors should seek relevant professional/financial advice before investing in the Fund and should read this document in conjunction with the prospectus of the Fund. The Responsible Person, BNYM -IM-SG and its affiliates are not responsible for any advice given to investors. Investments involve risks. A complete description of risk factors is set out in the Prospectus. Past performance is not a guide to future performance. The value of investments and the income from them is not guaranteed. The Fund may invest in financial derivatives. When you sell your investment you may get back less than you originally invested. This advertisement or publication has not been reviewed by the Monetary Authority of Singapore. Issued by BNYM-IM-SG (Co. Reg. No. 201230427E). AP4075-06-06-2023 (12M) Issued on 13/06/2023