Various changes - BNY Mellon Funds

BNY Mellon will be applying changes to two funds that feature in our defined fund ranges that will take effect on 7 November 2022.

We have been notified by the Directors of BNY Mellon Global Funds plc (“BNY Mellon”) that they will be making certain clarifications to the investment policy and investment strategy of the following funds that featured in our defined fund ranges.

BNY Mellon Long-Term Global Equity Fund - features in Regular Savings Plan and Quantum (including Malaysia), Oracle, Paragon, LifePlan and Protected Lifestyle
BNY Mellon Asian Equity Fund - features in Preference (including Hong Kong)

BNY Mellon will also be amending the name of the BNY Mellon Asian Equity Fund to better reflect the way it is managed.

The above amendments will be effective 7 November 2022 (the “Effective Date”). The updated supplements for the funds will be published on or after the Effective Date to reflect the changes.

Changes applicable to BNY Mellon Long-Term Global Equity Fund

The investment policy and strategy detailed in the fund's supplement will be updated to clarify and elaborate on how the Investment Manager’s (Walter Scott & Partners Limited) environmental, social and governance (ESG) criteria will be applied to investments. Following these updates, the fund will be classified as an Article 8 fund under the EU’s Sustainable Finance Disclosure Regulation (SFDR).

Currently, BNY Mellon do not consider securities lending to be compatible with an ESG investment approach therefore, with effect from 7 November 2022, the Fund will no longer engage in these activities and will forego any income which could be gained from doing so.

In following an ESG investment approach, the Investment Manager will consider factors other than financial performance as part of its investment process. This carries the risk that the fund’s performance will differ from similar funds that do not feature an ESG investment approach.

In addition, from 7 November 2022, the fund will no longer have the ability to invest up to one-quarter of its Net Asset Value in bonds which may be fixed or floating rate, government or corporate convertible debt securities and money market instruments (including, but not limited to, commercial paper, government bonds and certificates of deposit) or as cash. For the avoidance of doubt, the fund has never invested in such instruments.

The updates set out above do not amount to a material change to the fund; there will be no change to its objective or its risk profile as a result of these updates. There will be no change to the way the fund is managed and the fund's investments are not intended or expected to change significantly.

Changes applicable to BNY Mellon Asian Equity Fund

The investment policy section set out in the supplement of the BNY Mellon Asian Equity Fund will be updated to clarify the fund’s investment thresholds based on its existing investment objective, policy and strategy to better reflect the way the fund is currently managed. An extract of the revised investment policy section is set out below, along with the change of fund name:

Current fund name and extract of the current investment policy section	New fund name and revised investment policy section with effect from 7 November 2022
BNY Mellon Asian Equity Fund	BNY Mellon Asian Opportunities Fund
The Sub-Fund will invest primarily, meaning at least two-thirds of the Sub-Fund’s Net Asset Value, in a portfolio of equity and up to one-third of the Sub-Fund’s Net Asset Value in a portfolio of equity-related securities including convertible bonds (usually unrated), convertible preference shares and warrants (subject to a 10% limit of the Net Asset Value of the Sub-Fund in the case of warrants) of companies located in Asia (excluding Japan) or deriving a preponderant part of their income from Asia (excluding Japan). Investment may be made in both developed and emerging Asian regions (excluding Japan). Up to one-third of the Sub-Fund’s Net Asset Value may also be invested in equity and equity-related securities of companies neither located in Asia (excluding Japan) nor deriving a preponderant part of their income from Asia (excluding Japan).	The Sub-Fund will invest predominantly meaning at least 75% of its Net Asset Value, in a portfolio of equity and up to one-third of the Sub-Fund’s Net Asset Value in a portfolio of equity-related securities including convertible bonds (usually unrated), convertible preference shares and warrants (subject to a 10% limit of the Net Asset Value of the Sub-Fund in the case of warrants) of companies located in Asia (excluding Japan) or deriving a preponderant part of their income from Asia (excluding Japan). Investment may be made in both developed and emerging Asian regions (excluding Japan). Up to 25% of the Sub-Fund’s Net Asset Value may also be invested in equity and equity-related securities of companies neither located in Asia (excluding Japan) nor deriving a preponderant part of their income from Asia (excluding Japan).

Current fund name and extract of the current investment policy section

New fund name and revised investment policy section with effect from 7 November 2022

BNY Mellon Asian Equity Fund

BNY Mellon Asian Opportunities Fund

The Sub-Fund will invest primarily, meaning at least two-thirds of the Sub-Fund’s Net Asset Value, in a portfolio of equity and up to one-third of the Sub-Fund’s Net Asset Value in a portfolio of equity-related securities including convertible bonds (usually unrated), convertible preference shares and warrants (subject to a 10% limit of the Net Asset Value of the Sub-Fund in the case of warrants) of companies located in Asia (excluding Japan) or deriving a preponderant part of their income from Asia (excluding Japan). Investment may be made in both developed and emerging Asian regions (excluding Japan). Up to one-third of the Sub-Fund’s Net Asset Value may also be invested in equity and equity-related securities of companies neither located in Asia (excluding Japan) nor deriving a preponderant part of their income from Asia (excluding Japan).

The Sub-Fund will invest predominantly meaning at least 75% of its Net Asset Value, in a portfolio of equity and up to one-third of the Sub-Fund’s Net Asset Value in a portfolio of equity-related securities including convertible bonds (usually unrated), convertible preference shares and warrants (subject to a 10% limit of the Net Asset Value of the Sub-Fund in the case of warrants) of companies located in Asia (excluding Japan) or deriving a preponderant part of their income from Asia (excluding Japan). Investment may be made in both developed and emerging Asian regions (excluding Japan). Up to 25% of the Sub-Fund’s Net Asset Value may also be invested in equity and equity-related securities of companies neither located in Asia (excluding Japan) nor deriving a preponderant part of their income from Asia (excluding Japan).

The investment strategy section set out in the supplement of the fund will also be updated to clarify how the Investment Manager applies a high conviction, unconstrained investment approach in constructing the opportunities portfolio.

The updates set out above do not amount to a material change to the fund and there will be no change to its portfolio or risk profile as a result of these updates.

Plan owners do not need to take any action if they are happy with the above changes on either fund. However, they can switch to an alternative fund available to their plan, free of charge, should they wish to.

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For more information about BNY Mellon Funds visit www.bnymellonim.com