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BNY Mellon Global Income Inclusive - Income (GBP)

Sell:203.36p Buy:203.36p Change: 0.02p (0.01%)
Prices as at 26 October 2020
Change: 0.02p (0.01%)
You can buy or sell holdings in this fund through a Stocks and Shares ISA, Lifetime ISA, SIPP or Fund and Share Account
Prices as at 26 October 2020
Change: 0.02p (0.01%)
Prices as at 26 October 2020
You can buy or sell holdings in this fund through a Stocks and Shares ISA, Lifetime ISA, SIPP or Fund and Share Account
The selling price currently displayed is higher than the buying price. This can occur temporarily for a variety of reasons; shortly before the market opens, after the market closes or because of extraordinary price volatility during the trading day.

Our view on this Fund

This fund does not feature on the Wealth Shortlist of funds our analysts believe have the potential to outperform their peers over the long term. This is not a recommendation to sell; however, if you are thinking of adding to your investments, we believe the Wealth Shortlist is a good place to start. View funds on the Wealth Shortlist »

Nick Clay invests in companies from around the world rather than sticking to the UK like many other equity income managers. He invests in companies he thinks will keep going through thick and thin. That's often because their products or services are in demand whatever the economic scene.

Clay manages the fund fairly conservatively. That means the fund can miss out when markets are rising quickly, but could do relatively well when they're falling. We think his disciplined approach and focus on companies with healthy finances and high dividends will serve the fund well over the long-term.

Our view on the sector

Equity income funds are popular with investors. Most try to generate a rising income, and increase the value of your original investment, over the long term. The income can be paid out, or reinvested to boost long-term growth. Equity income funds have traditionally focused on the UK, and there's still a strong case for UK equity income. But there's a growing case for investing globally for income too. The number of companies outside the UK offering high and rising dividends has increased rapidly. And exposure to foreign currencies will boost returns if sterling weakens, like it did after the UK voted to leave the European Union in 2016, but the reverse is true if sterling strengthens.

Performance Analysis

The track record opposite shows the performance of the BNY Mellon Global Equity Income fund from September 2012 (when Nick Clay took over) and then the performance of Newton Global Income from December 2015.

Markets have been rising for many years. A lot of this has been driven by the giant US tech companies like Amazon, Facebook and Apple, many of which pay little or no dividends. As an equity income manager, Clay hasn't been able to invest in these companies. That's a big part of why the fund's fallen behind the market in recent years. He's performed well when global markets have been dull, such as mid-2015 to mid-2016 when China's growth stalled.

We've seen much more volatility in the markets recently. That could give the fund the opportunity to perform better. What happens in the markets, and how the fund performs in the future though, isn't guaranteed.

Investment Philosophy

The manager tries to identify what will drive future global growth and then invests in companies that can take advantage of those themes. Staying disciplined is also very important to him. He believes in taking the emotion out of investing, to help him avoid investment fads and bad companies.

Process and Portfolio Construction

Clay uses a well-honed approach when it comes to selecting companies. He'll only consider ones with a dividend yield at least 25% more than the market average. He then looks for ones in sound financial health. That makes him confident a company can keep paying and growing dividends in the future.

He also places a lot of importance on the value of a company's shares. He won't invest in companies he thinks are too expensive, even if consensus says it's worth it for the growth potential. This makes the fund quite conservative compared to many others.

Clay's supported by a large and experienced team of portfolio managers and analysts. He normally invests in large companies from developed countries like the US, UK and Switzerland. But he can also invest in higher-risk smaller companies and those from emerging markets, which also adds risk.

question mark Manager Track Record Based on HL Quantitative Research

  • BNY Mellon Global Equity Income...
  • BNY Mellon Global Income...
  • FTSE All World TR GBP

Fund Track Record

26/10/15 to 26/10/16 26/10/16 to 26/10/17 26/10/17 to 26/10/18 26/10/18 to 26/10/19 26/10/19 to 26/10/20
Annual return 32.52% 7.49% 3.01% 12.05% -3.99%

Please remember past performance is not a guide to future returns. Where no data is shown, figures are not available. This information is provided to help you choose your own investments, remember they can fall as well as rise in value so you may not get back the original amount invested.

Fund Management Group Comment

Newton is the London-based global investment management subsidiary of The Bank of New York Mellon Corporation. As a leading fund management company, Newton has full investment autonomy and is wholly focused on investment management. Its investment approach is directed by identifying global themes to help them establish the risks and opportunities in the market. These themes represent Newton's convictions about the likely forces of change in the world, based upon observable and structural trends rather than speculative or short-lived ideas. This thematic framework is applied across Newton's range of funds.

Information about the fund

Fund manager biography

manager photo
Manager Name: Nick Clay
Manager start date: 1 January 2015
Manager located in: TBC


Data policy - All information should be used for indicative purposes only. You should independently check data before making any investment decision. HL cannot guarantee that the data is accurate or complete, and accepts no responsibility for how it may be used. Benchmark data provided subject to this disclaimer.
You can buy or sell holdings in this fund through a Stocks and Shares ISA, Lifetime ISA, SIPP or Fund and Share Account