BNY Mellon Investment Management today announced in a press release the launch of three actively managed sustainable exchange traded funds: the BNY Mellon Sustainable US Equity ETF (BKUS), the BNY Mellon Sustainable International Equity ETF (BKIS), and the BNY Mellon Sustainable Global Emerging Markets ETF (BKES). All three funds are sub-advised by Newton Investment Management Limited.1
These funds join two others as part of BNY Mellon’s active ETF product suite: the BNY Mellon Concentrated International ETF (BKCI), which launched earlier this month, and the BNY Mellon Ultra Short Income ETF (BKUI), which launched back in August.
All of the ETFs in this new suite are designed to deliver a range of solutions to investors seeking long-term growth potential, with options for exposure to U.S. domestic portfolios as well as international and emerging markets.
- BNY Mellon Sustainable US Equity ETF (BKUS): The fund aims to invest at least 80% of its net assets in equity securities of U.S. companies that demonstrate attractive investment attributes and sustainable business practices.2 Charles French and Yuko Takano are the fund’s primary portfolio managers.
- BNY Mellon Sustainable International Equity ETF (BKIS): The fund typically invests at least 80% of its net assets in equity securities of foreign companies that demonstrate attractive investment attributes and sustainable business practices. Paul Markham and Yuko Takano are the fund’s primary portfolio managers.
- BNY Mellon Sustainable Global Emerging Markets ETF (BKES): The fund looks to invest at least 80% of its net assets in equity securities of companies listed on exchanges located in, organized in, having their principal place of business in, or having a majority of assets or business in, emerging market countries and that demonstrate attractive investment attributes and sustainable business practices. Paul Birchenough and Ian Smith are the fund’s primary portfolio managers.
“As investors and advisors continue to seek out innovative ways to invest for long term growth while also driving meaningful change across a variety of ESG-related initiatives, the demand for fully transparent, actively managed investment strategies has grown, specifically within ETFs and sustainable solutions,” commented Andy Provencher, head of North America distribution, BNY Mellon Investment Management. “Always focusing on client-orientated outcomes, the launch of this new suite of ETFs demonstrates our commitment to responding to client demand for sustainable solutions and leveraging the specialist capabilities of our investment firms.”
“Newton has deep expertise across the sustainable investing space and believes that active management plays a critical role in effectively identifying and measuring sustainable investments over time,” commented Curt Custard, interim head of sustainable investment and global head of client investment solutions, Newton. “As such, we are delighted to add BNY Mellon Sustainable US Equity ETF, BNY Mellon Sustainable International Equity ETF and BNY Mellon Sustainable Global Emerging Markets ETF to our range of active product offerings, which will offer clients access to an investment area that we as a firm are well versed in and continue to prioritize.”
The company has a long track record of developing responsible investing and ESG solutions. Newton Investment Management Ltd has been proxy voting since the 1970s and employed responsible investment analysts since the 1990s — long before it became mainstream to do so. It has been a signatory of the UN Principles of Responsible Investment since 2007 and joined the Net Zero Asset Managers initiative in March 2021, demonstrating its commitment to working with clients to help fulfill net-zero ambitions and to navigate portfolios through complex energy transitions.3 Newton currently manages $5.2 billion globally in sustainable investments across equity, fixed income, equity opportunities, equity income, multi asset, and real return strategies.4
To learn more about BNY Mellon’s ETF range, including the prospectus documents, please visit www.im.bnymellon.com/etf.
For more news, information, and strategy, visit ETF Trends.
BNY Mellon Investment Management is one of the world’s largest asset managers, with $2.3 trillion in assets under management as of Sept. 30, 2021. Through an investor-first approach, BNY Mellon Investment Management brings to clients the best of both worlds: specialist expertise from eight investment firms offering solutions across every major asset class, backed by the strength, stability, and global presence of BNY Mellon. Additional information on BNY Mellon Investment Management is available on www.im.bnymellon.com.
BNY Mellon Investment Management is a division of BNY Mellon, which has $45.3 trillion in assets under custody and/or administration as of Sept. 30, 2021. BNY Mellon can act as a single point of contact for clients looking to create, trade, hold, manage, service, distribute or restructure investments. BNY Mellon is the corporate brand of The Bank of New York Mellon Corporation (NYSE: BK). Additional information is available on www.bnymellon.com. Follow us on Twitter @BNYMellon or visit our newsroom at www.bnymellon.com/newsroom for the latest company news.
Newton Investment Management
The Newton Investment Management Group is used to collectively describe a group of affiliated companies that provide investment advisory services under the brand name ‘Newton’ or ‘Newton Investment Management’. Investment advisory services are provided in the United Kingdom by Newton Investment Management Ltd and in the United States by Newton Investment Management North America LLC. Both firms are indirect subsidiaries of The Bank of New York Mellon Corporation (“BNY Mellon”). With assets under management of $145 billion as of Sept. 30, 2021, Newton provides discretionary and non-discretionary investment advice to institutional clients, including U.S. and global pension funds, sovereign wealth funds, central banks, endowments, foundations, insurance companies, registered mutual funds, other pooled investment vehicles and other institutions. Its office locations include London, Boston, New York and San Francisco. News and other information about Newton is available at www.newtonim.com and via Twitter: @NewtonIM.
Investors interested in the fund should consider the investment objective, risks, charges, and expenses of the fund carefully before investing. To obtain a prospectus that contains this and other information about the fund, investors should contact their financial representatives or visit im.bnymellon.com. Read the prospectus carefully before investing.
ETF shares are listed on an exchange, and shares are generally purchased and sold in the secondary market at market price. At times, the market price may be at a premium or discount to the ETFs per share NAV. In addition, ETFs are subject to the risk that an active trading market for an ETF’s shares may not develop or be maintained. Buying or selling ETF shares on an exchange may require the payment of brokerage commissions.
ETFs trade like stocks, are subject to investment risk, including possible loss of principal. The risks of investing in ETFs typically reflect the risks associated with the types of instruments in which the ETF invests. Diversification cannot assure a profit or protect against loss.
The ETF will issue (or redeem) fund shares to certain institutional investors known as “Authorized Participants” (typically market makers or other broker-dealers) only in large blocks of fund shares known as “Creation Units.” BNY Mellon Securities Corporation (“BNYMSC”), a subsidiary of BNY Mellon, serves as a distributor of the fund. BNYMSC does not distribute fund shares in less than Creation Units, nor does it maintain a secondary market in fund shares. BNYMSC may enter into selected agreements with Authorized Participants for the sale of Creation Units of fund shares.
Equities are subject to market, market sector, market liquidity, issuer, and investment style risks to varying degrees. Small and midsized company stocks tend to be more volatile and less liquid than larger company stocks as these companies are less established and have more volatile earnings histories. 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.
The fund’s incorporation of ESG considerations into its investment approach may cause it to make different investments than funds that invest principally in equity securities of companies that do not incorporate ESG considerations when selecting investments. Under certain economic conditions, this could cause the fund to underperform funds that do not incorporate ESG considerations. For example, the incorporation of ESG considerations may result in the fund forgoing opportunities to buy certain securities when it might otherwise be advantageous to do so or selling securities when it might otherwise be disadvantageous for the fund to do so. The incorporation of ESG considerations may also affect the fund’s exposure to certain sectors and/or types of investments, and may adversely impact the fund’s performance depending on whether such sectors or investments are in or out of favor in the market.
Unless otherwise specified herein, all information is sourced by BNY Mellon as of December 3, 2021. This press release is qualified for issuance in the United States and is for informational purposes only. It does not constitute an offer or solicitation of securities or investment services or an endorsement thereof in any jurisdiction or in any circumstance in which such offer or solicitation is unlawful or not authorized. This material does not take into account the particular investment objectives, restrictions, or financial, legal, or tax situation of any specific investor. Investors should consult a legal, tax, or financial professional in order to determine whether an investment product or service is appropriate for a particular situation.
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1 The Newton Investment Management Group is used to collectively describe a group of affiliated companies that provide investment advisory services under the brand name ‘Newton’ or ‘Newton Investment Management’. Investment advisory services are provided in the United Kingdom by Newton Investment Management Ltd and in the United States by Newton Investment Management North America LLC. Both firms are indirect subsidiaries of The Bank of New York Mellon Corporation (“BNY Mellon”)
2 The fund’s sub-adviser, Newton Investment Management Limited (Newton), an affiliate of the Adviser, considers a company to be engaged in “sustainable business practices” if the company engages in such practices in an economic sense (i.e., the company’s strategy, operations and finances are stable and durable), and takes appropriate measures to manage any material consequences or impact of its policies and operations in relation to environmental, social and governance (ESG) matters (e.g., the company’s environmental 7 footprint, labor standards, board structure, etc.). Companies engaged in sustainable business practices also may include companies that have committed explicitly to improving their environmental and/or social impacts that will lead to a transformation of their business models.
3 The Net Zero Asset Managers initiative is an international group of asset managers committed to supporting the goal of net zero greenhouse gas emissions by 2050 or sooner, in line with global efforts to limit warming to 1.5 degrees Celsius; and to supporting investing aligned with net zero emissions by 2050 or sooner.
4 As of 30 September 2021. This AUM figure includes some strategies and products not available to U.S. investors.
BNY Mellon Investment Management
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