February 26, 2019 / Product launch

BNY Mellon launches sustainable bond fund

By Joe McGrath, ESG Clarity

Newton Investment Management now manages four sustainable investment funds

BNY Mellon launches sustainable bond fund

BNY Mellon Investment Management has launched a bond fund investing in holdings that meet sustainability rules set by its Newton IM brand.

The actively-managed BNY Mellon Sustainable Global Dynamic Fund measures its performance against one-month Euribor plus 2% per annum, over five years, before fees.

It will be managed by BNY subsidiary Newton Investment Management, by the brand’s team of portfolio managers, namely Paul Brain, Scott Freedman, Martin Chambers, Trevor Holder and Carl Shepherd. The Fund is available to both retail intermediaries and institutional investors.

“Our investment specialist Newton Investment Management has had responsible investing at the heart of its approach since its foundation in 1978,” BNY Mellon’s  head of European intermediary Hilary Lopez (pictured, above), said in a statement.

“By encouraging companies to engage in long-term sustainable behaviour, we believe these efforts over time result in better management, which can lead to better outcomes – both for clients in terms of value and for society as a whole.”

In the launch announcement, Lopez said that the assessment of ESG factors can enhance risk mitigation.

Newton Investment Management now manages four sustainable funds. Recent launches include the Newton Sustainable Global Equity Fund, the Newton Sustainable Real Return Fund and the Newton Sustainable Sterling Bond Fund. All were launched under the UK-domiciled BNY Mellon Investment Funds umbrella.

Newton IM managed some £2.6 billion in assets on either a sustainable or ethical basis, as at the end of December 2018, according to statistics from the company.

More information on Newton IM’s sustainable investment criteria, is available here.