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BNY Mellon Global Income Class U - Income (GBP)

Sell:209.23p Buy:209.23p Change: 2.94p (1.43%)
Prices as at 22 November 2024
Sell:209.23p
Buy:209.23p
Change: 2.94p (1.43%)
You can buy or sell holdings in this fund through a Stocks and Shares ISA, Lifetime ISA, SIPP or Fund and Share Account
Invest now
Prices as at 22 November 2024
Sell:209.23p
Buy:209.23p
Change: 2.94p (1.43%)
Prices as at 22 November 2024
You can buy or sell holdings in this fund through a Stocks and Shares ISA, Lifetime ISA, SIPP or Fund and Share Account
Invest now
The selling price currently displayed is higher than the buying price. This can occur temporarily for a variety of reasons; shortly before the market opens, after the market closes or because of extraordinary price volatility during the trading day.

Our view on this Fund

This fund does not feature on the Wealth Shortlist of funds our analysts believe have the potential to outperform their peers over the long term. This is not a recommendation to sell; however, if you are thinking of adding to your investments, we believe the Wealth Shortlist is a good place to start. View funds on the Wealth Shortlist »

The BNY Mellon Global Income fund aims to grow income and capital over the longer term by investing in companies from around the world. The team look to identify the driving forces behind future growth opportunities such as digitalisation and then invest in companies they believe can benefit from these dynamics. Typically, they invest more in 'value' stocks which means it could work well alongside 'growth' orientated funds and provide global diversification to an income-focused portfolio.

We like that the fund managers are incentivised in a way that aligns their interests with those of long-term investors. That said, there have been some significant fund manager departures in recent years, and we hope the current team will provide some stability for investors.

Our view on the sector

Equity income funds are popular with investors. Most try to generate a rising income, and increase the value of your original investment, over the long term. The income can be paid out, or reinvested to boost long-term growth. Equity income funds have traditionally focused on the UK, and there's still a strong case for UK equity income. But there's a growing case for investing globally for income too. The number of companies outside the UK offering high and rising dividends has increased rapidly. And exposure to foreign currencies will boost returns if sterling weakens, like it did after the UK voted to leave the European Union in 2016, but the reverse is true if sterling strengthens.

Performance Analysis

The fund has performed well since launch versus the IA Global Equity Income sector average. However, more recently it hasn't kept up with the broader stock market which has been largely driven by the giant US tech companies, many of which pay little or no dividends. While the process has largely remained the same, much of this performance is attributed to the fund's previous managers.

Investment Philosophy

The managers believe that the best way to achieve long-term growth is through the compounding (reinvesting) of dividends over time. To harness this philosophy, they have a strict buy and sell discipline to ensure that the companies they own compound at a higher rate than the market. For a stock to be considered for the portfolio it needs to yield at least 25% more than their benchmark - the FTSE World. In contrast, should the stock's yield fall below the benchmark it must be sold.

Process and Portfolio Construction

Investing in companies with unsustainable yields can be detrimental to long-term returns and is a risk they actively manage. Their bottom-up approach helps them to avoid these by investing in quality companies which have a dominant market position, sensible balance sheet and can easily generate cash. Understanding how companies will benefit or struggle to adapt to an ever-evolving society is another key aspect of their process. The managers will also assess if these businesses are supported by thematic tailwinds like consumer power and state intervention. They model a wide range of possible scenarios and try to invest where they believe there is attractive potential returns on offer which outweigh the risks.

This whittles a universe of around 2,600 companies down to a concentrated portfolio of between 40-70 names. Currently they own around 50 which means each holding can have a significant impact on performance, which adds risk. Developed markets are a key focus with around 40% of the fund invested across North America and Europe. They also invest in higher-risk emerging markets but exposure here is mainly through the revenues of countries listed elsewhere. The fund has not had any exposure to higher-risk smaller companies in recent years, but does have the flexibility to invest in them which, if used, would add risk.

question mark Manager Track Record Based on HL Quantitative Research

  • BNY Mellon Global Equity Income...
  • BNY Mellon Global Income GBP Inc
  • IA Global Equity Income
FROM: TO:


Source: Refinitiv Lipper

Fund Track Record

22/11/19 to 22/11/20 22/11/20 to 22/11/21 22/11/21 to 22/11/22 22/11/22 to 22/11/23 22/11/23 to 22/11/24
Annual return 1.89% 15.52% 10.91% 0.73% 15.64%

Please remember past performance is not a guide to future returns. Where no data is shown, figures are not available. This information is provided to help you choose your own investments, remember they can fall as well as rise in value so you may not get back the original amount invested.

Information about the fund

Fund manager biography

Manager Name: Jim Lydotes
Manager start date: 10 February 2023
Manager located in: TBC

TBC

manager photo
Manager Name: Robert Hay
Manager start date: 1 January 2015
Manager located in: London

Robert has been an investment manager on the equity opportunities team, and lead manager of the Newton Concentrated Global Equity strategy. In late March 2020 it was announced Rob would move into the Newton equity income team during Q2 2020 to work with the team on Newton global equity income strategies. Robert began his career in the private client investment division at Newton in 2000 and has managed a variety of global equity mandates. Robert has an MA from Edinburgh University, a Master's in European Business from the EAP European School of Management in Paris and is a CFA1 charterholder. Outside of work, Robert enjoys spending time outdoors with his young family and is looking forward to travelling with them as they get older.

manager photo
Manager Name: Jon Bell
Manager start date: 1 January 2015
Manager located in: London

Through his tenure at Newton, Jon has led both the global equity and multi-asset teams and been responsible for a number of multi-asset and global equity portfolios. As well as his extensive investment roles at the firm, he has also spent time as a member of the commercial team involved in discussing client portfolios and tailoring strategies to meet client requirements. He sits on Newton's investment risk oversight groups. Jon joined the Newton equity income team in March 2020, and is responsible for both core and sustainable global equity income strategies. Jon joined Newton in 1995 and has a degree in natural sciences from Cambridge University.

Data policy - All information should be used for indicative purposes only. You should independently check data before making any investment decision. HL cannot guarantee that the data is accurate or complete, and accepts no responsibility for how it may be used. Benchmark data provided subject to this disclaimer.
You can buy or sell holdings in this fund through a Stocks and Shares ISA, Lifetime ISA, SIPP or Fund and Share Account
Invest now