The Fund Explained
What is sustainability to us and why does it matter?
Sustainability means investing responsibly, with a particular emphasis on positive social, governance and
environmental outcomes. In other words, it’s about working to protect our future, as well as the future generations.
What is the BNY Mellon Sustainable Balanced Fund?
The 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. With this fund we aim to primarily select companies that we believe have a positive social and environmental impact.*
Why this fund might be right for you
Not only is this fund designed for long-term investments, but it uses a mix of stocks and bonds to help balance returns and risk.
We seek to help our clients invest in their future while considering social and environmental benefits.
Frequently asked questions
A fund is simply a diverse group of investments (stocks and bonds) that are commingled together in an investment vehicle for investors to purchase.
Balanced refers to the mixture of assets in the fund. The fund is divided between fixed-income securities (investments that pay a fixed amount of interest to investors until its maturity date) and equities (shares in corporations) in seeking to achieve an attractive balance of risk and return.
By sustainable, we mean investing not simply to make a profit, but also to consider sustainable business practices. Specifically, the fund takes significant account of the environmental, social and governance practices of the businesses and other entities in which it invests.
As well as financial metrics, we also evaluate factors such as environmental impacts, relations with workers and communities (social) and the effectiveness of the people in charge (governance) of the companies we invest in.
Active engagement with investee companies, a key part of sustainable investing, aims to encourage companies to improve their environmental, social and governance (ESG) practices to provide better outcomes for investors.
Before you go any further, it’s important that you download and read the additional information below, including the fund's prospectus.
We’re BNY Mellon Investment Management. We’ve been in Investment Management for over 100 years. We’re actually eight companies
or ‘firms’ in one, each with its own area of expertise. In the case of this particular fund, the stock portion is managed by our
affiliate NEWTON and the bond and bond-related portion is managed by MELLON INVESTMENTS CORPORATION.
*The fund normally invests at least 80% of its net assets, plus any borrowings for investment purposes, in the equity securities of issuers that demonstrate attractive investment attributes and sustainable business practices and have no material unresolvable environmental, social and governance (ESG) issues and in debt securities included in the Bloomberg Barclays MSCI U.S. Aggregate ESG Select Sector Neutral Index.
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.
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.
Recent market risks include pandemic risks related to COVID-19. The effects of COVID-19 have contributed to increased volatility in global markets and will likely affect certain countries, companies, industries and market sectors more dramatically than others. To the extent the fund may overweight its investments in certain countries, companies, industries or market sectors, such positions will increase the fund's exposure to risk of loss from adverse developments affecting those countries, companies, industries or sectors.
BNY Mellon Investment Management is one of the world's leading investment management organizations and one of the top U.S. wealth managers, encompassing BNY Mellon's affiliated investment management firms, wealth management organization and global distribution companies. BNY Mellon is the corporate brand of The Bank of New York Mellon Corporation and may also be used as a generic term to reference the Corporation as a whole or its various subsidiaries generally.
This material has been distributed for informational purposes only. It is educational in nature and should not be considered as investment advice or a recommendation of any particular security, strategy or investment product. Views expressed are those of the author stated and do not reflect views of other managers or the firm overall. Views are current as of the date of this communication and subject to change. Forecasts, estimates and certain information contained herein are based upon proprietary research and are subject to change without notice. Certain information has been obtained from sources believed to be reliable, but not guaranteed. Please consult a legal, tax or financial professional 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 Limited, Mellon Investments Corporation (the fund’s sub-advisers) and BNY Mellon Securities Corporation are subsidiaries of The Bank of New York Mellon Corporation.