BNY Mellon Dynamic Value Fund Highlights
DAGVX - A Shares
Morningstar
Overall Rating
As of 3/31/20231
Fund Assets
$2.7bn
As of 3/31/2023
Fund Holdings
65-100
When the Fed goes high,
investors should consider
going low
With the US Federal Reserve pushing interest rates higher to combat inflation, investors should consider looking "low" for companies that can potentially mitigate some of the effects of higher rates. "Low" refers to companies identified as having low leverage (debt to capital).
We believe companies with current earnings, reasonable valuations and low leverage (less impacted by higher borrowing costs), will be better suited to manage through this period of rising rates. On a sector level, Basic Materials, Energy, Financials, and Healthcare sectors share these qualities and are relatively "lower" than the broader market. These same sectors are currently favored by the BNY Mellon Dynamic Value Fund (DAGVX - A shares).
When the Fed goes high, investors should consider going low
"Low" refers to companies identified as having low leverage (debt to capital).
Source: Bloomberg and Morningstar Direct, as of 12/31/2022.
Broad Market based on S&P 500 TR USD and others based on iShares US ETFs.
There can be no guarantee that the funds investment approach will be successful or that any particular level of return will be achieved for the fund.
Where we find value
Rooting out this value is the focus of our Dynamic Value Fund. Our active approach seeks out companies with strong fundamentals, where catalysts for business improvement indicate long-term value, and where investor skepticism has led to attractive valuations. There, we believe, lies the sweet spot for alpha opportunities.
What differentiates the BNY Mellon
Dynamic Value Fund
DAGVX - A shares
Active approach
Many funds screen for value – but some value stocks are affordable for good reason. The active management of our experienced team offers clients more than mere exposure to the market: it can open up opportunity to achieve alpha returns.
Strategic vision
We seek companies and sectors that offer a catalyst for business improvement. They are businesses we believe are poised to capitalize on economic cycles or their own innovations: changes that we believe will put them on a stronger growth trajectory in years to come.
Consistent focus
We remain rigorously focused on value among the top US large cap value companies. This style consistency has helped us achieve steady relative outperformance against the fund's benchmark, the Russell 1000 Value Index.
Past performance is no guarantee of future results.
Portfolio composition and allocation is as of Dec 31, 2022 and is subject to change at any time. The holdings listed should not be considered recommendations to buy or sell a security. Large concentrations can increase share price volatility. Totals may not be exact due to rounding. Negative exposures may represent short positions through derivatives.
BNY Mellon Dynamic Value Fund
Overall Morningstar Rating
(1139 funds rated)1
Class A DAGVX
The fund seeks capital appreciation. To pursue this goal, the fund normally invests at least 80% of its net assets in stocks. The fund's stock investments may include common stocks, preferred stocks and convertible securities, including those purchased in initial public offerings. The fund may invest up to 30% of its assets in foreign securities.
Morningstar Category:
Large Value
A uniquely dynamic approach
A global presence and clear, independent thinking inform our approach to money management and investment strategies.
We deploy quantitative and proprietary screens to identify stocks with attractive valuation, strong fundamentals and business improvement potential.
Our fundamental research analysts carry out bottom-up research. Uniquely, they sit alongside investigative journalists, private equity analysts, thematic researchers and geopolitical experts. Their combined insights provide depth of vision.
We use their recommendations to build a portfolio with attractive risk-adjusted return potential. Institutional risk management process is governed by oversight from the portfolio management team with an emphasis on adherence to style purity.
The Team
Brian Ferguson
Portfolio Manager
Newton Investment Management North America, LLC
John Bailer
Deputy Head of Equity Income
Portfolio Manager
Newton Investment Management North America, LLC
Keith Howell
Portfolio Manager
Newton Investment Management North America, LLC
David Intoppa
Research Analyst
Newton Investment Management
Insights
Finding Value in Value
The case for value
Meet the Manager: Brian Ferguson
Large cap value outlook 2023: Strength in the “old economy”?
Focusing on fundamentals helped these two BNY Mellon funds outperform in 2022
Investment Management
BNY Mellon Investment Management is one of the world’s leading investment management organizations, encompassing BNY Mellon’s affiliated investment management firms 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.
About Newton
With offices in London, New York, Boston and San Francisco, Newton manages $109.0 billion of assets. Newton focuses on delivering outcomes for clients across equity opportunities, income, absolute return (including fixed income), multi-asset solutions, thematic and sustainable strategies. These capabilities are driven by its global investment platform that harnesses both fundamental and quantitative research, alongside a thematic framework.
Contact Us
Our commitment to fully servicing the need of our investment partners is our highest priority. BNY Mellon Pinpoint looks deep into the specific holdings of your portfolios to gain an insightful picture of its potential opportunities, including hypothetical portfolio behavior in varying market scenarios — bull and bear markets, high growth/low growth, high volatility/low volatility, and rising and falling rate environments. Contact your regional consultant today to arrange a demo.
¹ Source: Morningstar. Overall 5-star rating is based on the fund's I class in the Large Value category (1153 funds rated). The Morningstar Rating™ for funds, or “star rating,” is calculated for managed products with at least a 3-year history. It is calculated based on a Morningstar Risk-Adjusted Return measure that accounts for variation in a managed product's monthly excess performance (not including the effects of sales charges, loads and redemption fees if applicable), placing more emphasis on downward variations and rewarding consistent performance. Managed products, including open-end mutual funds, closed-end funds and exchange-traded funds, are considered a single population for comparative purposes. The top 10% of products in each product category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars, and the bottom 10% receive 1 star. The Overall Morningstar Rating for a managed product is derived from a weighted average of the performance figures associated with its 3-, 5-, and 10-year (if applicable) Morningstar Rating metrics. ©2022 Morningstar, Inc. All rights reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete, or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance is no guarantee of future results. The fund represents a single portfolio with multiple share classes that have different expense structures. Other share classes may have achieved different results. The Morningstar Extended Performance Rating is calculated by adjusting the performance of the fund's oldest share class to reflect the fee structure of the younger share class, and then compounding the adjusted plus actual monthly returns into the extended performance Risk-Adjusted Return for the 3-, 5- and 10-year time periods.
Investors should consider the investment objectives, risks, charges, and expenses of the fund carefully before investing. Download a prospectus, or summary prospectus, if available, that contains this and other information about the fund, and read it carefully before investing. There is no guarantee that any investment strategy or approach will be successful or achieve any particular level of results.
All investment products involve risk of principal loss.
The information on this website is for informational purposes only and should not be construed as investment advice or a recommendation of any particular investment product, strategy, investment manager or account arrangement, and should not serve as a primary basis for investment decisions. Nothing in this website shall be considered a solicitation to buy or an offer to sell a security, or any other product or service, to any person in any jurisdiction where such offer, solicitation, purchase or sale would be unlawful under the laws of such jurisdiction.
The fund's investment adviser is BNY Mellon Investment Adviser, Inc. (BNYM Investment Adviser). BNYM Investment Adviser has engaged its affiliate, Newton Investment Management North America, LLC (Newton), to serve as the fund's sub-adviser.
“Newton” and/or the “Newton Investment Management” refers to Newton Investment Management North America LLC. Newton is registered with the U.S. Securities and Exchange Commission (SEC)
Alpha measures the difference between a fund's actual and expected returns, and is generally used as a measure of a manager's added value over a passive strategy.
S&P 500 Index - The Standard & Poor's 500 (S&P 500) Composite Stock Price Index is a widely accepted, unmanaged index of U.S. stock market performance.
Risks
Equities are subject to market, market sector, market liquidity, issuer, and investment style risks, among other factors, to varying degrees. 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. 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.
Value investing involves risk, and the market may not favor value-style investing.
Past performance is no guarantee of future results.
MARK-306747-2022-10-06
