BNY Mellon Multi-Asset Balanced

BNY Mellon Multi-Asset Balanced fund aims to achieve a balance between income and capital growth over a minimum of five years by investing in equities and bonds. It is part of a wider multi-asset range and uses the full power of Newton’s 130 investment professionals to invest in any geographic or economic sector in the world.

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Our Opinion
Fund Managers
Key Facts
Fund Performance
Risk
Company Description
Investment process
ESG

Our Opinion

Using the huge resource available at Newton, manager Simon Nichols has created a rock-solid global multi-asset vehicle which uses themes to target the forces driving global change in markets. He does this by investing in what he calls “future-facing business models” which have the ability to tap into megatrends in their respective industries. The fund predominantly invests in global equities, but also has an allocation to bonds. It has proven to be a very successful formula during Simon’s tenure on the fund.

Fund Managers

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Fund Managers

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Simon Nichols, Co-Manager Simon is a portfolio manager at Newton, where he handles both global equity and multi-asset portfolios. He joined Newton in 2001, focusing on global industrial sectors before managing various investment portfolios. Simon is a Chartered Accountant (ACA) and a CFA charterholder, with experience in audit and insolvency. He also holds a BA (Hons) in Industrial Economics from The University of Nottingham. Outside of work, Simon enjoys running and is actively involved in his son’s local junior sports teams.

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Bhavin Shah, Co-Manager Bhavin joined Newton in June 2011 as a portfolio manager in the multi-asset team, after spending seven years at SG Hambros managing client portfolios focused on absolute return and multi-asset strategies. He is the co-lead manager on several multi-asset accounts at Newton and is also a member of the Investment Risk Oversight Group. Additionally, Bhavin co-leads the Net Effects thematic group, which focuses on digitalization trends. He holds an MSc in Mathematics with distinction and is a CFA charterholder.

Manager photo

Paul Flood, Co-Manager Paul Flood is a portfolio manager at Newton, part of the Equity Income team since March 2020. He leads several multi-asset portfolios, including Newton’s Multi-Asset Income strategy, and plays a key role in setting risk profiles across Newton's multi-asset range. With expertise in asset allocation, derivatives, and convertible bonds, Paul has been generating ideas in alternative assets since 2008. He joined Newton in 2004 after working as a unit trust dealer at Mellon Investment Funds Europe. Paul holds a CFA charter, a CQF with distinction, and a degree in Astrophysics from the University of St Andrews. He is also an avid cyclist and marathon runner.

Simon Nichols, Co-Manager Simon is a portfolio manager at Newton, where he handles both global equity and multi-asset portfolios. He joined Newton in 2001, focusing on global industrial sectors before managing various investment portfolios. Simon is a Chartered Accountant (ACA) and a CFA charterholder, with experience in audit and insolvency. He also holds a BA (Hons) in Industrial Economics from The University of Nottingham. Outside of work, Simon enjoys running and is actively involved in his son’s local junior sports teams.

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Bhavin Shah, Co-Manager Bhavin joined Newton in June 2011 as a portfolio manager in the multi-asset team, after spending seven years at SG Hambros managing client portfolios focused on absolute return and multi-asset strategies. He is the co-lead manager on several multi-asset accounts at Newton and is also a member of the Investment Risk Oversight Group. Additionally, Bhavin co-leads the Net Effects thematic group, which focuses on digitalization trends. He holds an MSc in Mathematics with distinction and is a CFA charterholder.

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Paul Flood, Co-Manager Paul Flood is a portfolio manager at Newton, part of the Equity Income team since March 2020. He leads several multi-asset portfolios, including Newton’s Multi-Asset Income strategy, and plays a key role in setting risk profiles across Newton's multi-asset range. With expertise in asset allocation, derivatives, and convertible bonds, Paul has been generating ideas in alternative assets since 2008. He joined Newton in 2004 after working as a unit trust dealer at Mellon Investment Funds Europe. Paul holds a CFA charter, a CQF with distinction, and a degree in Astrophysics from the University of St Andrews. He is also an avid cyclist and marathon runner.

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Key Facts

Asset type Multi-Asset

Annual Income (Historic) -

Sector Mixed Investment 40-85% Shares

Gearing-

Fund Size-

Fund Manager Start Date 31 July 2020

Ongoing Charges Figure (OCF) -

Payment Date(s) Feb, Aug

Annual Management Charge (AMC) -

Fund Performance

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Risk

The main risks on this fund are focused around stock selection and asset allocation. It invests globally, meaning there are both currency fluctuations and the additional volatility of investing in emerging markets to consider. Bond holdings can also be impacted by changing interest rates. The firm does have an independent risk team that evaluates style and valuation biases that run through the fund. There is also a constant focus on asset correlation and liquidity.

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Company Description

This fund is run by Newton Investment Management but under the BNY Mellon branding. BNY (Bank of New York) Mellon operates as a ‘multi-boutique’, using its size and strength to provide support and global reach to a range of more specialist investment houses. Operating across 35 different countries, the firm has $1.8trn of assets under management.Newton itself is a UK-based investment management firm, established in 1978. It runs a variety of institutional and retail mandates spread across equity, fixed income and multi-asset strategies

Fund Performance

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Risk

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The main risks on this fund are focused around stock selection and asset allocation. It invests globally, meaning there are both currency fluctuations and the additional volatility of investing in emerging markets to consider. Bond holdings can also be impacted by changing interest rates. The firm does have an independent risk team that evaluates style and valuation biases that run through the fund. There is also a constant focus on asset correlation and liquidity.

Investment process

The BNY Mellon Multi-Asset Balanced fund typically has around 65-80 per cent invested in global equities, with the remaining allocation usually invested in high quality government bonds.

Stock selection is determined by four specific factors – global themes (such as clean energy or deglobalisation); company fundamentals (such as a company’s balance sheet/business model); a strong and improving ESG footprint; and valuations.

The team will talk to the wider research desk at Newton when evaluating potential equity and bond positions (the latter includes government, corporate, high yield and emerging market debt bonds).

Simon will typically target larger companies in industries which already have an element of growth behind them – these businesses will normally be exposed to tailwinds in markets. As a result, the fund has historically had an overweight towards sectors like healthcare and technology. BNY Mellon Multi-Asset Balanced fund is style agnostic as Simon will look at value companies, provided they are not in long-term structural decline.

The fund does have the flexibility to invest across the entire bond market, but Simon has typically preferred to offset the equities allocation by investing in high quality government bonds. Bond exposure will seldom account for more than 25 per cent of the portfolio.

Risk

The main risks on this fund are focused around stock selection and asset allocation. It invests globally, meaning there are both currency fluctuations and the additional volatility of investing in emerging markets to consider. Bond holdings can also be impacted by changing interest rates. The firm does have an independent risk team that evaluates style and valuation biases that run through the fund. There is also a constant focus on asset correlation and liquidity.

ESG

ESG - Integrated

Responsible investing has been a feature of the Newton Investment Management approach for over four decades. The team has been a proxy votes since the 1970’s, as well as being one of the first signatories for the Principles for Responsible Investment.

The most important part of the ESG focus on this fund will be governance – as the team believes strong governance means management is more likely to take care of both the environmental and social footprints of their business. However, this does not mean the fund cannot hold a company with ESG challenges. For example, the team may hold an oil & gas company if it feels the valuation is low enough to compensate for issues like carbon taxes or oil spills.

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