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    BNY Mellon Investment Management

    Fund Manager Page

    IN BRIEF

    We are the investment management arm of BNY Mellon, one of the world’s largest financial services groups. With a presence around the world, we look to connect investors with opportunities across every major asset class. We have built our business around investors’ needs, offering eight expert investment firms, each with their own distinct culture, investment philosophy and process.

    Insight is a London-based asset manager specialising in investment solutions across liability-driven investment, absolute return, fixed income, cash management, multi-asset and specialist equity strategies.

    Mellon is a global multi-specialist investment manager dedicated to serving its clients with a full spectrum of research-driven solutions. With roots dating back to 1933, Mellon has been innovating across asset classes for generations and has the combined scale and capabilities to offer clients a broad range of single and multi-asset strategies.

    Newton is renowned for its distinctive approach to global thematic investing. Based in London and with over 30 years’ experience, Newton’s thematic approach is applied consistently across all strategies.

    Established in 1983 and based in Edinburgh, Walter Scott offers global equity portfolio management to institutional investors around the world.

    FACTS & FIGURES

    Total AUM (USD) 2.2tr (BNY Mellon)
    64.3bn (Newton)
    0.9tr (Insights)
    102bn (Walter Scott)
    Total AUM (USD)
    AUM SRI Strategies (USD)
    % screened
    % ESG integrated
    SRI/ESG Team N experts

    MEMBER / SIGNATORY

    PRI BNY Mellon (2006)
    Newton (2007)
    Insight (2006)
    Walter Scott (2017)
    UN Global Compact BNY Mellon (2021)
    CDP Insight
    Walter Scott
    Climate Action 100+ Insight (2017)
    Walter Scott (2018)
    FAIRR Newton
    IIGCC Newton
    Insight
    Net Zero Asset Manager Initiative Newton (2021)
    SASB Newton
    TCFD Newton (2018)
    Insight (2018)
    Nordic SIF Swesif (BNY Mellon)
    Other SIF UK SIF (Insight)

    Other memberships & initiatives
    Insights:

    • International Capital Market Association (ICMA)

    Walter Scott:

    • International Corporate Governance Network (ICGN)

    Featured

    Investing In Change

    Stockholm (NordSIP) – For many, responsible investing is about avoiding certain companies, be it for ethical reasons, reputation management or risk mitigation. With the...

    News

    Research

    PUBLIC COMMITMENT

    Commitment Statement

    Creating prosperity for our clients while supporting companies we believe offer a sustainable future is a shared objective across BNY Mellon Investment Management. Using ESG data alongside conventional financial factors, our specialist investment firms analyse multiple perspectives to identify the opportunities they believe can deliver long-term value.

    As one of the largest asset managers in the world we are a significant part of the financial system. We strive to respond to the most pressing global issues – social as well as financial. We are invested in the well-being of the world. To do so we engage with companies to create more effective risk management, responsible capital allocation and more sustainable business practices to generate greater benefits for our societies, economies and the environment. Because we believe in being responsible. Because it is investing as it should be.

    Click here to find out more

    Newton
    As purposeful and active owners, guided by our clients’ objectives, we see it as our responsibility to fully understand each asset we invest in. The assessment of environmental, social and governance (ESG) considerations is an important part of our investment philosophy.Responsible investment Therefore, where appropriate and as applicable, in addition to financial measures we evaluate factors such as environmental impacts, social standards, and the effectiveness of people in charge of an issuer. We believe this approach allows us to better manage risk and make more informed investment decisions.
    Insight
    We believe integrating environmental, social and governance (ESG) issues into our investment processes, and in our dialogue
    with issuers and other stakeholders, supports better investment decisions and can have the potential to help our clients achieve their desired outcomes.
    We aim to deliver on our commitments and our beliefs by:
    1. Putting responsibility at the heart of how we do business
    2. Integrating ESG issues into our investment processes
    3. Acting as effective stewards of companies and other
    entities
    4. Supporting efforts that seek to improve the operation,
    resilience and stability of financial markets
    5. Collaborating with others on ESG issues
    6. Exercising transparency and disclosing our activities
    Walter Scott
    At Walter Scott, responsible investing is central to what we do and what we believe. We understand that Environmental, Social and Governance factors, as much as financial metrics, determine the long-term success of an investment.

    SRI Awards & Recognitions

    • CDP Climate A-List (2020)
    • Dow Jones Sustainability™ Indices (DJSI) inclusion (2020)
    Insight Investments
    • ESG Fixed Income Manager of the Year (Sustainable Investment Awards 2021)
    • ESG Manager of the Year (Professional Pensions UK Pensions Awards 2020)

    INTEGRATION & INTERNAL RESOURCES

    Integration

    At BNY Mellon Investment Management, each expert investment firm has designed an integration process that suits its unique capabilities and investment style.

    Newton
    Prior to investing, ESG considerations are an important input into the fundamental research on equity securities undertaken by Newton’s global industry analysts. All investment staff have at their disposal two primary techonology-based tools developed by our responsible investment team that map a company’s approach and performance in relation to ESG matters: our ESG Dashboard and ESG consensus Score.
    Insight
    For Insight, investing responsibly means taking material risks into account, including a comprehensive analysis of ESG factors, when making investment decisions. Integration is then tailored to each specific asset class.
    Walter Scott
    We believe that integrating ESG factors into our investment process benefits our clients’ risk-adjusted returns in the following main ways:

    —It allows us to identify companies with superior prospects, which stem, at least partially, from strong ESG credentials. This allows us to uncover and potentially invest in companies with better near-term and terminal growth prospects, if the price is right.

    —It can help us avoid companies at risk from inferior ESG credentials. By owning a concentrated portfolio of ESG ‘leaders’ as opposed to a long list of names that includes ‘laggards’ we reduce exposure to fundamental risk.

    —Companies with superior and improving ESG credentials (and therefore better fundamental opportunities and reduced risks) will, naturally, be afforded a lower cost of capital. This provides a supportive tailwind to shareholders’ returns through rising multiples/falling discount rates. Given societal trends in consumption and investing, we consider this more likely to happen for companies with a strong ESG focus.

    Mellon
    Mellon has established formal ESG leadership to ensure ESG integration throughout its investment processes. The firm has deliberately structured an approach to provide direction and oversight as well as operational efficacy.

    Proprietary methodology / models

    To supplement the integration process, Newton has developed an ESG Dashboard and ESG Scorecard and each equity security the global industry analysts wish to recommend require an ESG quality review to be performed by the responsible investment team. For each quality review, separate ESG issues are analysed and two ESG scores between 1 and 10 are established for each company: the current ESG score and the expected ESG score. More information on the scoring methodology can be found here.

    Meanwhile, Insight has developed Prime®, the proprietary ESG ratings. The use and impact of these ESG ratings in specific investment strategies will vary, potentially significantly, depending on the nature of the asset class and the structure of the investment mandate involved.
    The ratings methodology is described in details in this document.

    At Walter Scott, research is proprietary and combined with supplementary information and analysis from external sources, including third-party research providers, academics and subject matter experts. For research in any company, regardless of geography or sector, the firm applies the same analytical framework, which involves analysis of historical financial records alongside consideration of seven key areas of investigation:
    • Business activities and physical footprint
    • Integrity, sustainability and governance
    • Market characteristics
    • Control of destiny
    • Financial profile
    • Management and board
    • Valuation and trading

    In the analysis of integrity, sustainability and governance practices, the firm assesses and monitors companies on relevant and material factors across four key areas:
    • Environmental considerations
    • Carbon risk & climate change
    • Human & social capital
    • Governance
    Detailed information about Walter Scott's proprietary ESG analysis can be found in the firm's Sustainability Risk Policy .

    Team & Committees

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    ENGAGEMENT & STEWARDSHIP

    Engagement Resources

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    Proxy Voting

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    Disclaimer

    For Professional Clients only. Any views and opinions are those of the investment manager unless otherwise noted and is not investment advice. This is not investment research or a research recommendation for regulatory purposes.

    The value of investments can fall. Investors may not get back the amount invested. Income from investments may vary and is not guaranteed. Investment Managers are appointed by BNY Mellon Investment Management EMEA Limited (BNYMIM EMEA), BNY Mellon Fund Managers Limited (BNYMFM), BNY Mellon Fund Management (Luxembourg) S.A. (BNY MFML) or affiliated fund operating companies to undertake portfolio management activities in relation to contracts for products and services entered into by clients with BNYMIM EMEA, BNY MFML or the BNY Mellon funds.

    For further information visit the BNY Mellon Investment Management website. http://www.bnymellonim.com

    SUSTAINABLE PRODUCTS & STRATEGIES

    Core / Impact

    Active SRI