A Responsible Way To
Invest In Your Future

BNY MELLON SUSTAINABLE BALANCED FUND

Investing is about making your money work harder for you.

In comparison to putting money into a savings account, our fund offers a convenient way to save long-term, with the potential for your savings to grow and may achieve a higher return.*
It means your money could be worth more when you retire.

So the earlier you start the better.

*Investing in the fund involves higher risk than investing in a savings account. Please see risk disclosures in the Important Disclosures section.
 

Who chooses a fund like this?

Take a look at the type of Californians who might invest in this fund*

Maria, waitress
Lindsay, facilities manager
Mark, personal trainer

*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 Important Disclosures section below.

Maria is hoping to eventually retire and spend more time with her partner Jeff and their golden retriever Milo. They love spending weekends on the beach, enjoying the sea air and swimming in the ocean. Maria has seen a news story about how air pollution is increasing, and she has concerns.

How the BNY Mellon Sustainable Balanced Fund helps
As air pollution is an environmental issue, companies that contribute toward worsening air quality would be excluded from the BNY Mellon Sustainable Balanced Fund.

The result
By choosing this fund, Maria can save for her retirement, and be more assured that her investment matches her values.

Lindsay is hoping to have a comfortable retirement in the future. 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 wield power by selecting funds who invest in companies that meet certain social values. She wants her values, including gender equality, to be reflected in her investments.

How the BNY Mellon Sustainable Balanced Fund helps
The 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. In companies where there are very few women, we work with them to help see improvement in gender diversity over time.

The result
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.

Riley and Mark have two kids, and they’ve all been recently discussing the environment. The couple wants 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.

How the BNY Mellon Sustainable Balanced Fund helps
The fund seeks to exclude firms that contribute to environmental problems, along with avoiding any bond investments in oil and gas companies and the metals and mining sector.

The result
By choosing this fund, Riley and Mark can save money without adding to some of the environmental risks facing future generations.

The Fund Explained

What is sustainability 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 select only companies that have a positive social and environmental impact.

What this fund won’t do?

If we believe a company presents certain risks to the planet and society, we avoid it – even if it might be profitable in the near term. The kind of companies we’re talking about are those which create harmful products or affect the world’s climate, such as tobacco, fossil fuel (such as coal, oil and natural gas) and oil drilling.

Please see important risk disclosures about investing in the fund and ESG investing in the Importat Disclosure section below.

What else does sustainability mean for us at BNY Mellon?

Tackling
Carbon Emissions

The carbon emissions of the fund are
51%
less than the benchmark1, 2

as of December 2, 2019

Improving
Gender Diversity

48% of the fund has at least
30%
female representation on the boards
of companies vs. 41% representation in the benchmark1, 2

as of December 2, 2019

Improving Water
Reduction Targets

35%
of the fund has a
water reduction target vs
28% in the benchmark1, 2

as of December 2, 2019

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 balance returns and risk at a  
suitable level for retirement savings. We help our clients retire well into a healthy and vibrant world.

 

1 The relative benchmark is the MSCI ACWI, a broad-based index that represents global stocks. 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 securities or stocks across developed market countries and emerging market countries. Investors cannot invest directly in any index.

2 This is estimated based on $100 million Assets Under Management (AUM). Based on equity portion of fund only.

 

Want to find out more?

Take a look at the education center. This is where to find out more about this fund: how it works,
what the various terms mean and how you can invest.

About us

We’re BNY Mellon. 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 INVESTMENT CORPORATION.

 

The Bank of New York Mellon Corporation, doing business as BNY Mellon, is the parent company.

It’s a worldwide banking and financial services holding company headquartered in New York City.

Newton Investment Management is a global investment management firm owned by BNY Mellon.

We work with our clients to deliver their desired investment outcomes using our responsible, theme-based approach, fundamental research and deep industry experience.

This is our global investment management firm.

It specialises in institutional and high-net-worth individual asset management, business banking and shareholder and investor services.

Important Disclosures

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.

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.

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