BNY Mellon
Sustainable Balanced Fund

BNY Mellon Sustainable Balanced Fund generally holds a mix of approximately 60% stocks and 40% bonds. This combination is often called a “traditional balanced” fund and is designed for people saving for the long term, such as for their retirement. The fund’s collection of different investments seeks to grow your money by investing in the stocks and bonds of global companies with sustainable business models. We believe that the way companies treat the environment, employees, customers, and neighbors is important, and these values may be important to you as well. Explore how the fund may match your money with your values.

 

Why invest?

In order to save enough money to retire comfortably, simply putting aside your extra cash is unlikely to be enough. Investing gives you an opportunity to achieve higher returns than you may receive by keeping cash in a bank account. Investing in stocks and bonds can potentially offer greater returns, but it does come with additional risk.
By investing for a long time, however, you give your money more time to grow. Every extra year you invest has the potential to make your savings worth more when you eventually retire. The earlier you start, the better.

What does sustainability mean to us?

To us, sustainability means investing responsibly, with a particular emphasis on positive social and environmental outcomes. In managing BNY Mellon Sustainable Balanced Fund, we seek to avoid companies which, even if we think they might be profitable in the near term, we believe present certain risks to the planet and society that could suggest poor performance in the future. We exclude some companies and sectors automatically, such as:
  • tobacco companies, and
  • businesses that negatively affect the world’s climate, for example, through oil drilling or other fossil fuel-related processes.
We also place high value on meeting the managers of companies and encourage conducting business in a socially conscious way.

Why BNY Mellon Sustainable Balanced Fund?

BNY Mellon Sustainable Balanced Fund generally holds a mix of approximately 60% stocks and 40% bonds. Stock prices can be quite unpredictable, while bond prices tend to move around less. This combination is often called a “traditional balanced” fund, and is often used by people who are saving for the long term, such as for their retirement.
Our collection of different investments is designed to grow your money by investing in the stocks and bonds of global companies with sustainable business models. We believe that the way companies treat the environment, employees, customers, and neighbors is important, and these values may be important to you as well.
This fund excludes tobacco companies, along with companies that may harm the environment by engaging in activities such as deforestation or burning fossil fuels. We look to invest in companies that have strong social principles so they will stand against political bribery and corruption, for example, and strive to improve labor standards. Our portfolio companies will also practice good governance by addressing topics like board diversity and shareholder rights. We believe your retirement savings can reflect what matters to you.

 

Who might invest in this fund?*

 

A beach-loving waitress

Maria is a waitress who is hoping to eventually retire and spend more time with her partner Jeff and their golden retriever Milo. Maria and Jeff love spending weekends on the beach, enjoying the sea air and swimming in the ocean. However, she has recently seen some news explaining how air pollution is increasing. Maria is concerned for her health and the health of the place where she and Jeff intend to spend the rest of their lives. As air pollution is an environmental issue, companies that contribute toward worsening air quality would be excluded from this fund. By investing with BNY Mellon Sustainable Balanced Fund, Maria can save for her retirement, and feel comfortable that her investment matches her values.

A facilities manager thinking about her daughter's future

Lindsay works as a building facilities manager in San Francisco and is hoping to have a comfortable retirement in the future. When she’s not working, she tries to spend as much time as possible with her teenage daughter, who has big dreams for her future career. Lindsay doesn’t want her daughter to ever be held back by her gender, especially at work. She knows that investors can have a lot of power when discussing issues with the companies in which they invest, and wants some of her values, including gender equality, to be reflected in those activities. BNY Mellon Sustainable Balanced Fund receives input from the members of Newton’s responsible investment team, who consider how many women are on a company’s board when evaluating portfolio investments. Acceptable gender splits vary between countries and sectors, but in cases where there are very few women, Newton aims to work with these companies to help see improvement in gender diversity over time. By investing her money in this fund, Lindsay can save for her retirement and know that her dollars are seeking to support a fairer world for all.

A couple who want to save for retirement and
protect the planet for their kids at the same time

Riley and Mark have two kids, and have recently been discussing the environment, including the recent wildfires, at the dinner table, with their children asking tough questions about the future of the planet. Not only do the couple want their children to be happy and healthy in the future, they also want to be around to see it and to play a part in their children’s lives without worrying about money. The couple want to save for retirement but will feel conflicted if they also have to invest in companies that are polluting the environment they love. They would like to save for retirement without supporting fossil-fuel companies and the oil and gas sector in the process. BNY Mellon Sustainable Balanced Fund automatically excludes firms that contribute to environmental problems, along with avoiding any bond investments in oil and gas companies and the metals and mining sector, making it a potential option for anyone looking to save money without adding to some of the environmental risks facing future generations.
Of course, these are just examples, but hopefully these profiles give you an idea of how BNY Mellon Sustainable Balanced Fund can help you save for retirement in a sustainable way.

*Examples shown are for illustrative purposes only, and do not represent actual investors in the fund. Please see important risk disclosures regarding investing in the fund and ESG investing in the Risks section below.

Here are some examples of how the fund applies sustainable business practices:

The fund managers review how many women are on a company’s board when considering portfolio investments. While gender diversity varies by country and sector, in cases where there are very few women, the management team aims to work with companies to help see improvement in gender diversity over time.
As air pollution is an environmental issue, companies that contribute toward worsening air quality would be excluded from this fund.
The burning of fossil fuels, like oil and gas, generates carbon emissions which are harmful to the environment. BNY Mellon Sustainable Balanced Fund automatically excludes firms that contribute to environmental problems, along with avoiding any bond investments in oil and gas companies and the metals and mining sector.

 

1 Comparisons are made to demonstrate correlation only and are for illustrative purposes only. The Morgan Stanley Capital International All Country World Index captures large- and mid-cap representation across developed market countries and emerging market countries. Investors cannot invest directly in any index.

2 This is estimated based on $100million AUM. Based on equity portion of fund only.

Sources: Newton, MSCI ESG Manager

Frequently Asked Questions

  • Why should I consider BNY Mellon Sustainable Balanced Fund as an investment in my retirement plan?
    You may wish to consider the fund if you have an interest in knowing that your savings are invested in a sustainable way. The fund aims to deliver returns by investing in businesses and other entities which we believe have sustainable business models. It takes into account the impact and risks these entities have on the environment and society.
  • What do you mean by sustainable?
    By sustainable, we mean investing not simply to make a profit, but also to make the world a better place. Specifically, the fund takes significant account of the environmental, social and governance practices of the businesses and other entities in which it invests.
  • What does balanced mean?
    Balanced refers to the mixture of assets in the fund. The fund is divided between fixed-income securities and equities (shares in corporations) in seeking to achieve an attractive balance of risk and return.
  • What does actively managed mean?
    Actively managed refers to an investment approach where the manager of an investment fund uses its judgment to make decisions about the composition of the fund. This compares to a "passive" approach, where a manager seeks simply to mimic the performance of a broad market index.

Who are we?

The fund’s investment adviser, BNY Mellon Investment Adviser, Inc. ("BNYM Investment Adviser"), has engaged its affiliate Newton Investment Management (“Newton”) to manage the overall asset allocation of the fund – how much is in stocks and how much is in bonds – while also managing the stock portion of the portfolio. BNYM Investment Adviser has appointed another one of its affiliates, Mellon Investments Corporation (“Mellon”), to manage the bond and bond-related portion of the fund.
BNY Mellon is a premier global investments company dedicated to helping clients manage and service their financial assets throughout the investment lifecycle. Whether providing financial services for institutions, corporations or individual investors, BNY Mellon delivers informed investment management and investment services in 35 countries across six continents, with a workforce of more than 51,000 employees. As of June 30, 2019, the firm had $1.8 trillion in assets under management and $35.5 trillion in assets under custody and/or administration.
Newton is a global investment management firm, owned by BNY Mellon. It selects securities such as stocks and bonds with the help of a series of investment “themes” to create and manage strategies that aim to help secure its clients’ futures. As of June 30, 2019, the firm had $63.8 billion in assets under management.
Mellon is a global investment manager, owned by BNY Mellon and dedicated to serving clients with a full spectrum of research-driven solutions. Backed by quality research, a robust infrastructure and integrated systems and processes, Mellon can manage a host of investment disciplines for its clients. The fund’s debt investments are managed by Mellon using an indexed approach that also applies certain environmental, social and governance (“ESG”) criteria.

Investors should consider the investment objectives, risks, charges, and expenses of a mutual fund carefully before investing. Download or visit im.bnymellon.com to obtain a prospectus, or a summary prospectus, if available, that contains this and other information about the fund, and read it carefully before investing.

All investments involve risk, including the possible loss of principal. No investment strategy or risk management technique can guarantee returns or eliminate risk in any market environment. Asset allocation and diversification cannot assure a profit or protect against loss.

Risks

Bonds are subject to interest-rate, credit, liquidity, call and market risks, to varying degrees. Generally, all other factors being equal, bond prices are inversely related to interest-rate changes and rate increases can cause price declines.

Equities are subject to market, market sector, market liquidity, issuer, and investment style risks, to varying degrees.

Currencies are subject to the risk that those currencies will decline in value relative to a local currency, or, in the case of hedged positions, that the local currency will decline relative to the currency being hedged. Each of these risks could increase the fund’s volatility.

Investing in foreign denominated and/or domiciled securities involves special risks, including changes in currency exchange rates, political, economic, and social instability, limited company information, differing auditing and legal standards, and less market liquidity. These risks generally are greater with emerging market countries.

Impact investing and/or environmental, social and governance (ESG) managers may take into consideration factors beyond traditional financial information to select securities, which could result in relative investment performance deviating from other strategies or broad market benchmarks, depending on whether such sectors or investments are in or out of favor in the market. Further, ESG strategies may rely on certain values-based criteria to eliminate exposures found in similar strategies or broad market benchmarks, which could also result in relative investment performance deviating. This material has been distributed for informational purposes only and should not be considered as investment advice or a recommendation of any particular investment, strategy, investment manager or account arrangement.

Views expressed are those of the advisor stated and do not reflect views of other managers or the firm overall. Views are current as of the date of this publication and subject to change. Information contained herein has been obtained from sources believed to be reliable, but not guaranteed. Please consult a legal, tax or investment advisor in order to determine whether an investment product or service is appropriate for a particular situation. No part of this material may be reproduced in any form, or referred to in any other publication, without express written permission. BNY Mellon Investment Adviser, Inc. (the fund’s investment adviser), Newton Investment Management (North America) Limited, Mellon Investments Corporation (the fund’s sub-advisers) and BNY Mellon Securities Corporation are subsidiaries of The Bank of New York Mellon Corporation, of which BNY Mellon is the corporate brand.

© 2019 BNY Mellon Securities Corporation, distributor, 240 Greenwich Street, 9th Floor, New York, NY 10286.

 

MARK-74819-2019-08-23