Performance

The performance of the scheme*, after deduction of all payments out of scheme property** as set out in the prospectus. Performance should be considered over an appropriate timescale having regard to the scheme’s investment objectives, policy and strategy.

We assessed the performance of each share class against its stated objective. Funds – and their individual share classes – may have different objectives over specified time frames. For instance, one may have a stated goal over three years, another over 12 months. For funds with an income objective we take its yield into consideration. For funds which undergo significant change over the review period – such as a change in its objective – we take this into consideration on a case-by-case basis.

Quality of Service

The range and quality of services provided to shareholders.

We assessed the quality of the service provided to holders of our funds. Our analysis considered services provided to the fund by third parties, as well as the services investors received from BNY Mellon Investment Management.

Comparable market rates 

In relation to each service, the market rate for any comparable service provided: a) by the Authorised Fund Manager (AFM); or b) to the AFM or on its behalf, including by a person to which any aspect of the scheme’s management has been delegated.

We assessed the fees paid by the investors in the funds against similar competitor products.

AFM (Authorised Fund Manager) Costs - General 

In relation to each separate charge, the AFM’s charges and those of its associates for comparable services provided to clients, including for institutional mandates of a comparable size and having similar investment objectives and policies.

We assessed the individual costs for services provided in the fund. These included the payment to the trustee, depositary, and investment manager among others. We also considered the profitability of the funds.

Comparable Services 

In relation to each separate charge, the AFM’s charges and those of its associates for comparable services provided to clients, including for institutional mandates of a comparable size and having similar investment objectives and policies.

We assessed the costs of the share classes of the fund, when compared to a negotiated fee share class, or a broadly similar mandate only available to institutional investors.

Economies of Scale 

Whether the AFM is able to achieve savings and benefits from economies of scale, relating to the direct and indirect costs of managing the scheme property and taking into account the value of the scheme property and whether it has grown or contracted in size as a result of the sale and redemption of units.

We assessed whether any savings achieved by the fund increasing in size were passed on to the underlying investors. If a fund decreased in size, we assessed whether the costs disproportionately increased.

Classes of Units/Shares 

Whether it is appropriate for unitholders to hold units in classes subject to higher charges than those applying to other classes of the same scheme with substantially similar rights.

We examined whether the investors of the fund were in the appropriate share class. If there were many share classes for one fund, it was assessed whether all of the share classes were still fit for purpose and required.