Foreword

Dear Investors,

Welcome to our second Assessment of Value report
for six of our specialist managed investment funds.

Reviewing and assessing the value our funds offer to investors – both existing and new – is an essential role and one which we as a board take seriously. This document highlights the review this small selection of funds has undergone, as well as outlining actions and efforts we have taken over the past year to improve their value where necessary.

This year’s report is published against the backdrop of the ongoing Covid-19 pandemic. While this has presented huge challenges for society and governments the world over, it has also impacted investors – from the market volatility in the opening months of lockdowns in 2020, to the

extraordinary support offered by central banks to the threat of inflation today. Through all of this over the past year the board has worked hard to maintain a sharp focus, monitoring performance and processes to ensure they maintain value and continuity. This assessment has followed the same methodology as last year and includes independent analysis and opinions alongside our own views.

While much market attention has focused on the repercussions of Covid-19, investors have become increasingly interested in responsible investment. We recognise the growing demand from investors for investments to address environmental, social and governance (ESG) factors in companies.

BNY Mellon Investment Management, as well as the board governing your funds, are strongly committed to responsible investment and continue to enhance and extend our product range in this area. This is through the creation of both new products and sustainable versions of existing funds – such as the Newton Sustainable Growth and Income Fund for Charities highlighted in this report.

Since the first value assessment in 2020, the board has taken appropriate, timely and demonstrable action to address several key areas we identified as requiring improvement. This included reducing fees on specific share classes as well as closing funds deemed unviable.

We believe the need for diligent, independent board members and enhanced transparency and scrutiny has never been more important.

As such, the board of BNY Mellon Fund Managers Ltd, which has two independent directors and is chaired by myself, continues to work with BNY Mellon Investment Management to help guide and enhance its processes and oversight as it aims to deliver excellent, timely service to its clients.

On behalf of the board, I hope you find this report both accessible and helpful. We welcome any comments or feedback you may have so we can learn from this experience in developing future reports. (email: clientservices@bnymellon.com)

Please note: As we were going to print, the UK's Financial Conduct Authority (FCA) published its feedback on the progress of the industry with respect to these assessments. We have already begun considering this and will reflect any changes in our next report.

This report represents an objective appraisal of six of our funds. These specialist funds feature varying financial year ends, up to 31 March 2021 and so have been consolidated in this report.

Included are:
• Absolute Insight Fund
• Newton Managed Targeted Return Fund
• Newton Growth and Income Fund for Charities
• Newton Sustainable Growth and Income Fund for Charities
• Newton SRI Fund for Charities
• BNY Mellon (River and Mercantile) Global Equity Fund

Yours faithfully,

Carole Judd
Chair (Independent) of
BNY Mellon Fund Managers Ltd Board of Directors

Chapter 1: Our results
Chapter 2: Absolute Insight Fund
Chapter 3: Newton Managed Targeted Return Fund
Chapter 4: Other funds

At the back please see appendix containing the glossary of terms, a simplified workflow of the report process and contact information.

The board of Directors

Anne-Marie McConnon
Executive director
Anne-Marie is the global chief marketing and client experience officer for BNY Mellon Investment Management.

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

Gerald Rehn
Executive director
Gerald oversees BNY Mellon Investment Management’s international product and operations functions.

Greg Brisk
Executive director
Greg is responsible for the oversight of the funds. At BNY Mellon Investment Management he is head of governance.

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