Please ensure Javascript is enabled for purposes of website accessibility Assessment of Value Report: October 2023 - UK - BNY Mellon

Assessment of Value Report:

October 2023


How to read this report

If you have..





Focus on the results of your specific fund. Read your fund page (listed below) where you can performance stats and an overall rating summary.




For more context you might want to refresh yourself on the 2022 results and the actions taken. This can be found on pages 8-11 of the report.




To understand our assessment methodology, find an in-depth explanation on this and the seven criteria we use to rate our funds in ‘our methodology’. This can be found on page 12 of the report.




Alongside reading about our methodology, and your fund’s 2022 and 2023 results, this report can provide you with an in-depth analysis of our overall findings. This can be found on pages 16-18 of the report.




  • BNY Mellon 50/50 Global Equity Fund page 29
  • BNY Mellon Asian Income Fund page 30
  • BNY Mellon Asian Opportunities Fund page 31
  • BNY Mellon Emerging Income Fund page 32
  • BNY Mellon Equity Income Booster Fund page 33
  • BNY Mellon Equity Income Fund page 34
  • BNY Mellon FutureLegacy 3, 4, 5, 6 & 7 Fund page 35
  • BNY Mellon Global Absolute Return Fund page 36
  • BNY Mellon Global Dynamic Bond Fund page 37
  • BNY Mellon Global Dynamic Bond Income Fund page 38
  • BNY Mellon Global Emerging Markets Opportunities Fund page 39
  • BNY Mellon Global Equity Fund page 40
  • BNY Mellon Global High Yield Bond Fund page 41
  • BNY Mellon Global Income Fund page 42
  • BNY Mellon Global Infrastructure Income Fund page 43
  • BNY Mellon Global Multi-Strategy Fund page 44
  • BNY Mellon Global Opportunities Fund page 45
  • BNY Mellon Index Linked Gilt Fund page 46
  • BNY Mellon Inflation-Linked Corporate Bond Fund page 47
  • BNY Mellon International Bond Fund page 48
  • BNY Mellon Long Gilt Fund page 49
  • BNY Mellon Long-Term Global Equity Fund page 50
  • BNY Mellon Multi-Asset Balanced Fund page 51
  • BNY Mellon Multi-Asset Diversified Return Fund page 52
  • BNY Mellon Multi-Asset Global Balanced Fund page 53
  • BNY Mellon Multi-Asset Growth Fund page 54
  • BNY Mellon Multi-Asset Income Fund page 55
  • BNY Mellon Real Return Fund page 56
  • BNY Mellon Sustainable European Opportunities Fund page 57
  • BNY Mellon Sustainable Global Dynamic Bond Fund page 58
  • BNY Mellon Sustainable Global Emerging Markets Fund page 59
  • BNY Mellon Sustainable Global Equity Fund page 60
  • BNY Mellon Sustainable Global Equity Income Fund page 61
  • BNY Mellon Sustainable Real Return Fund page 62
  • BNY Mellon Sustainable Sterling Bond Fund page 63
  • BNY Mellon Sustainable UK Opportunities Fund page 64
  • BNY Mellon UK Equity Fund page 65
  • BNY Mellon UK Income Fund page 66
  • BNY Mellon US Equity Income Fund page 67
  • BNY Mellon US Opportunities Fund page 68
  • Responsible Horizons Strategic Bond Fund page 69
  • Responsible Horizons UK Corporate Bond Fund page 70








Meet the Board: and how in the context of this assessment they define value

Carole Judd

Carole Judd

Independent Board Chair

Carole has over 30 years’ experience in asset management and investment consulting.


“Value can be subjective. This is why communication and feedback from investors is so important. We view it as ongoing conversation and assessment – not just a single output or result at a set period in time.”



Sarah Cox

Sarah Cox

Executive Director

Sarah is head of UK fund governance, operations and client services at BNY Mellon Investment Management EMEA and is chief executive officer for the board.


“Being a trusted partner for our investors, providing good outcomes by delivering returns along with a great customer experience.”



Marc Saluzzi

Marc Saluzzi

Independent Director

Marc, retired from PwC Luxembourg since 2015, has extensive experience in asset management across both the US and Luxembourg.


“The cumulation of many factors that results in an investment solution that meets the needs of an investor, in terms of net performance, risk and quality of service.”



Kira Nickerson

Kira Nickerson

Executive Director

Kira is the consulting managing editor at BNY Mellon, with more than 22 years’ experience writing for professional and retail investors.


“Providing our clients with what they need, when they need it and in a way that is clearly understandable.”



Gerald Rehn

Gerald Rehn

Group Non-Executive Director

Gerald is the head of Investment Management EMEA and oversees the group’s distribution functions.


“Value is the total client experience and financial outcome received in exchange for the total fees paid.”

Caylie Stallard

Caylie Stallard

Executive Director

Caylie, who has worked in financial services for over 16 years, is head of product development & management EMEA for BNY Mellon Investment Management.


“This report is our way of informing you of how we have been meeting the expectations we set. We recognise each investor is unique and may place more importance on one aspect or outcome over another.”

Sandeep Sumal

Sandeep Sumal

Group Non-Executive Director

Sandeep is the director of governance at BNY Mellon Investment Management with over 20 years’ experience in the financial services industry


“Ensuring the products we provide meet the criteria that you should expect when you invest with us.”



Our AOV review process

A complex review process using multiple sets of data, across seven criteria analysed on a fund-by-fund basis, the board of BNY Mellon Fund Managers Ltd has honed its methodology since the Assessment of Value was introduced in 2020. Here is a simplified flow chart outlining our process.



Among the internal sources: 
Client complaints log
Investment Management Oversight Committee summary
Prospectus for trustee fees
Transaction charges
Audit benchmarking
Financial reports for the funds
Client holding and fee database

Among the external sources and consultants we used were:
Performance: Lipper IM
FITZ Partners Board Reporting & Investment Advisory Fee
Benchmarking Report
MJ Hudson Amaces CMS Fund Accounting Report & CMS Custody and Treasury Report
NatWest Trustee and Depository Services, Custody Benchmarking
Report, Custodian Oversight Pack & Quarterly Report


2023 Methodology

In this Assessment of Value report, we examined 46 funds with accounting end dates up to and including 30 June 2023.

Our assessment follows the seven-factor criteria outlined by the UK regulator, the Financial Conduct Authority (FCA). We used a variety of internal data to examine the individual funds within each of these areas. This data included that provided by external, independent consultants. 

Further details on the seven criteria:


FCA definition

Our assessment


The performance of the scheme,1after deduction of all payments out of scheme property2 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 charge, the cost of providing the service to which the charge relates, and when money is paid directly to associates or external parties, the cost is the amount paid to that person.

We assessed the individual costs for services provided in the fund. These included the payment to the trustee, depositaryand 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.





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