As the board of BNY Mellon Fund Managers Ltd, the authorised corporate director for BNY Mellon Investment Funds (BNY MIF), we are committed to creating and maintaining investor value within our funds. We, along with BNY Mellon Investment Management, believe in providing clients with the best of both worlds: access to specialist fund managers, backed by the strength, scale and stewardship of BNY Mellon, one of the largest financial companies in the world.
In this report, we take an objective appraisal of the 40 funds in the UK-domiciled BNY MIF range over the year ending 30 June 2020. This time frame includes a difficult investment period. The past 12 months has seen global markets react strongly and with increased volatility to the Covid-19 pandemic. Brexit, trade disputes and civil unrest have added to the unsettled investment environment.
Our assessment of value has not been based solely on the criteria the UK regulator outlined for analysis. We also examined additional factors we consider to be of importance to our clients, such as areas of communication during times of market stress – like in March 2020.
Analysis was conducted using multiple individual data sets for each fund, supplemented by our own evaluation of the funds’ objectives and achievements.
Where we could, data and expertise from three different independent consultants – a London-based fund research group specialising in the calculations of fund fees and expenses, a direct-to-consumer research firm and a specialist asset servicing cost and quality of services provider – were used to substantiate our own data.
OUR RESULTS
I am pleased to say in most cases, the analysis shows we are delivering value to our clients. Value to us doesn’t just mean cost. Value is a combination of investment performance, product goals and design, transparency, charges and quality of service. And there are areas where we can do better. In such cases, we have highlighted where we believe remedial action may be required. We will seek to address these over the coming months.
We hope the publication of this report enhances transparency for our clients. On behalf of the board, I hope you find it both accessible and helpful. We welcome any comments or feedback you may have so we can improve future reports (email: clientservices@bnymellon.com).
Yours faithfully, Carole Judd Chair of BNY Mellon Fund Managers Ltd Board of Directors
As the board overseeing the funds in which you are invested, caring for our clients has always been a high priority for us. As part of our wider commitment to continuous improvement, we constantly look for new ways to improve insight and transparency with respect to your investments.
Providing world-class client experience is critically important to us, which is why we strive to continually improve and enhance services. For instance, over the course of the past 18 months, we have worked to improve the clarity of our letters to you. While more can be done, we believe we are headed in the right direction by minimising the jargon and legal language used to communicate with our clients.
We are always looking to improve upon the way (and the speed) with which we respond to any concerns raised by investors. Likewise we continually look for new, quicker ways to deliver data and information on products.
We also place continued importance on the need for context. Clients can read thoughtful articles on the latest trends and events affecting investment markets and asset classes on www.bnymellonim.com as well as in regular publications such as our bi-annual retail magazine, Money Matters.
CHALLENGING TIMES
The Covid-19 pandemic has been challenging for all of us, in many ways. It has certainly cast a long shadow over the tail-end of this assessment’s review period. It has also fundamentally changed the way we work and communicate.
Throughout the crisis we worked to ensure we offered investors a high level of communication. For instance, at the height of market falls in March 2020, BNY Mellon Investment Management (BNYM IM) turned its global outlook website into a Covid-19 hub, featuring the latest market commentaries and views. That website saw an 890% rise in traffic in March alone. It was also cited in the press as an example of a company with “accessible content” on Covid-19.1
It wasn’t the only action taken by BNYM IM or us.
In response to client queries, we offered frequent commentaries highlighting portfolio activities.
1 Ignites Europe. Prehistoric fund websites disappoint on Covid-19 content. 3 June 2020
Amid a country-wide lockdown, we held our first two virtual shareholder meetings on proposed fund mergers. Neither merger went ahead but we view enabling shareholders to have their say, a success.
We substantially increased consumer content through
In this e-magazine you will find our EXECUTIVE SUMMARY as well as a GLOSSARY of terms (all words underlined can be found in the glossary). The summary encapsulates the methodology we used to come to our assessments as well as our main findings.
A summary table highlighting the ratings given to the 40 funds in the Mellon Investment funds universe can also be found in this section.
Full details on the individual funds can be found in the PDF version of the entire report. CLICK HERE for the main report.
Carole Judd board chair (independent) Carole joined the board in 2019, first as a director and then on 1 September 2020 became chair and responsible for the oversight of the funds. She has over 30 years’ experience in asset management and investment consulting.
Greg Brisk executive director Head of governance at BNY Mellon Investment Management, Greg (who was board chair for the period covered by this report) is focused on best practices to protect shareholder interests in both fund investor and BNY Mellon-owned entities. Greg has worked in the finance industry since 1982 and at BNY Mellon since 1999.
Anne-Marie McConnon executive director Anne-Marie is the global chief marketing officer for BNY Mellon Investment Management. Her career spans more than 20 years and she has been recognised as Investment Week’s Marketer of the Year on several occasions.
Marc Saluzzi independent director In 2015 Marc retired from PwC Luxembourg where he worked since 1986 and where, between 2006 and 2010, he led the network’s Global Asset Management practice. He has over 30 years’ experience in asset management across both the US and Luxembourg.
Hilary Lopez executive director Hilary is the head of intermediary distribution in Europe for BNY Mellon Investment Management EMEA, where she is also a member of the Investment Management Global & EMEA Distribution Executive Committees.
Gerald Rehn executive director Gerald is head of international product & governance at BNY Mellon Investment Management, having joined the group in 2013. He oversees BNY Mellon Investment Management EMEA’s product strategy, development, performance oversight, client services and fund governance and operations functions.