Change to performance benchmark, investment objective and policy – BNY Mellon Multi-Asset Diversified Return
BNY Fund Managers Limited ("BNY") has announced a change to the performance benchmark, investment objective and policy of its BNY Mellon Multi-Asset Diversified Return Fund (the "Fund") which will take effect 1 October 2021.
Available in our open-architecture products
The Fund features in our open-architecture products and will be subject to changes detailed in the BNY notification document opposite.
Available in our defined fund range products
The Fund can be found in our defined fund range products Oracle, Paragon, Quantum, RSP (including Malaysia variants), LifePlan and Protected Lifestyle. A summary of the changes to the performance benchmark, investment objective and policy are detailed in the tables below. You can view a copy of the BNY notification document opposite for a detailed breakdown of all the changes.
| Current performance benchmark | New performance benchmark |
|---|---|
| 1 month GBP LIBOR | SONIA (30 day compounded)
|
| Current investment objective and policy | Revised investment objective and policy |
|---|---|
ObjectiveThe objective of the Fund is to achieve long-term capital growth over a period of at least 5 years from a portfolio diversified across a range of assets. The Fund is managed to seek a return in excess of cash (1 Month GBP LIBOR) +3% per annum over five years before fees. In doing so, it aims to achieve a positive return on a rolling three year basis (meaning a period of three years, no matter which day you start on). However, a positive return is not guaranteed and a capital loss may occur. PolicyThe Fund uses sterling cash (1 month GBP LIBOR) +3% per annum over five years before fees as a target set for the Fund’s performance to match or exceed.
The ACD considers 1 month GBP LIBOR +3% per annum over five years before fees to be an appropriate target because 1 month GBP LIBOR is representative of cash and the Fund’s investment objective is to seek a return in excess of sterling cash +3% per annum.
| ObjectiveThe objective of the Fund is to achieve long-term capital growth over a period of at least 5 years from a portfolio diversified across a range of assets. The Fund is managed to seek a return in excess of cash (SONIA 30 (day compounded)) +3% per annum over five years before fees. In doing so, it aims to achieve a positive return on a rolling three year basis (meaning a period of three years, no matter which day you start on). However, a positive return is not guaranteed and a capital loss may occur. PolicyThe Fund uses sterling cash (SONIA (30 day compounded)) +3% per annum over five years before fees as a target set for the Fund’s performance to match or exceed.
The ACD considers SONIA (30 day compounded) +3% per annum over five years before fees to be an appropriate target because SONIA (30 day compounded) is representative of cash and the Fund’s investment objective is to seek a return in excess of sterling cash +3% per annum.
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