The BNY Mellon Responsible Horizons Corporate Bond ETF
Utilizes Insight's Proprietary ESG Ratings; Prime
NEW YORK, March 22, 2022 /PRNewswire/ -- BNY Mellon
Investment Management, one of the world's largest asset managers
with $2.4 trillion in assets under
management1, today announced the launch of the BNY
Mellon Responsible Horizons Corporate Bond ETF (TICKER: RHCB). The
ETF, which is listed on NYSE Arca, is sub-advised by Insight North
America LLC, a subsidiary of Insight Investment (Insight), a BNY
Mellon investment firm, with $1.2
trillion under management2 and expertise in fixed
income and risk management.
The new active ETF seeks a total return consisting of capital
appreciation and income while focusing on corporate debt securities
issued by companies that demonstrate attractive investment
attributes and business practices, based on Insight's proprietary
ESG rating methodology, Prime. The fund is managed by Erin Spalsbury and Jonathan Earle, who are both members of
Insight's $316.3bn Fixed Income Group
. The ETF seeks to emphasize what Insight believes to be the best,
and avoid the worst, performers on ESG issues, and to carefully
consider the approach taken to investments in environmentally
sensitive industries. Insight's philosophy is that ESG risks may
affect investment value and as such, need to be analyzed, mitigated
and appropriately priced.
BNY Mellon Responsible Horizons Corporate Bond ETF is the sixth
actively-managed and fourth dedicated sustainable solution in BNY
Mellon Investment Management's ETF range, which offers investors
the specialist capabilities of its investment firms delivered
through a suite of actively-managed and Index ETF solutions.
Andy Provencher, Head of North
American Distribution, BNY Mellon Investment Management, said:
"This is an exciting addition to our growing ETF range as investors
and advisors are increasingly looking for outcome-oriented
strategies in more versatile investment vehicles. By leveraging
Insight's fixed income and responsible investment experience, we're
able to provide our clients with a sustainable investment solution
through an actively-managed ETF vehicle. In partnering with
Insight, a manager that takes ESG issues into account as an
integral part of its credit analysis and investment process, we aim
to achieve this goal."
Svein Floden, Head of
Intermediary Distribution at Insight, said: "This is the first
time that Insight has offered US ETF investors access to its ESG
expertise. Responsible Investment is central to our philosophy and
culture. We believe that our proposition is compelling and should
stand out in a market where few products approach responsible
investment via fixed income. We look forward to developing this
product set for US investors."
Insight has more than $20.5bn in
ESG assets under management3, is A+ rated by the
UN-supported Principles for Responsible Investment4 and
is a signatory to the Financial Reporting Council's UK Stewardship
Code5. Its corporate ESG ratings are applied to 95% of
global investment grade corporate bonds6 and cover 33
key ESG issues and its climate risk ratings are applied to a
universe of more than 1,700 issuers using 200+ data inputs and
covering 14 key climate-related concerns. Insight regularly engages
directly with fixed income issuers regarding their ESG-related
risks and, if necessary, it will actively encourage them to improve
their practices.
About BNY Mellon Investment Management
BNY Mellon Investment Management is one of the world's largest
asset managers, with $2.4 trillion in
assets under management as of December 31,
2021. Through an investor-first approach, BNY Mellon
Investment Management brings to clients the best of both worlds:
specialist expertise from eight investment firms offering solutions
across every major asset class, backed by the strength, stability,
and global presence of BNY Mellon. Additional information on BNY
Mellon Investment Management is available on
www.im.bnymellon.com.
BNY Mellon Investment Management is a division of BNY Mellon,
which has $45.3 trillion in assets
under custody and/or administration as of Sept. 30, 2021. BNY Mellon can act as a single
point of contact for clients looking to create, trade, hold,
manage, service, distribute or restructure investments. BNY Mellon
is the corporate brand of The Bank of New York Mellon Corporation
(NYSE: BK). Additional information is available on
www.bnymellon.com. Follow us on Twitter @BNYMellon or visit our
newsroom at www.bnymellon.com/newsroom for the latest company
news.
About Insight Investment
Insight Investment is a leading asset manager focused on
designing investment solutions to meet its clients' needs. Founded
in 2002, Insight's collaborative approach has delivered both
investment performance and growth in assets under management.
Insight managed $1.2trn of assets as
at December 31, 2021 across
core full-spectrum fixed income, liability-driven investment, risk
management and currency capabilities2. Insight
Investment is owned by BNY Mellon, a global leader in investment
management and investment services with $2.4
trillion in assets under management1. Insight has
a clear mission and purpose to offer investors a different approach
to achieving their investment goals; one that prioritizes the
certainty of meeting their chosen objectives in contrast to the
traditional focus on maximizing return and minimizing
volatility.
Insight takes responsible investment seriously. In our view, it
is as an essential part of managing risk and deciding whether an
investment is fair value. We were a founding signatory to the
UN-supported Principles for Responsible Investment (PRI) in 2006
and have been improving the integration of environmental, social
and governance (ESG) issues in our research processes for more than
a decade. Where we identify material ESG risks, we also seek to
engage to better understand the issues. In 2020, Insight was
awarded A+ ratings by the PRI for strategy and governance, and for
the integration of responsible investment-related issues for
categories relevant to Insight4.
More information about Insight Investment can be found at:
www.insightinvestment.com
Investors should consider the investment objectives, risks,
charges and expenses of a fund carefully before investing. To
obtain a prospectus, or a summary prospectus, if available, that
contains this and other information about a fund, contact your
financial professional or visit im.bnymellon.com/etf. Please read
the prospectus carefully before investing.
ETF shares are listed on an exchange, and shares are generally
purchased and sold in the secondary market at market price. At
times, the market price may be at a premium or discount to the ETFs
per share NAV. In addition, ETFs are subject to the risk that an
active trading market for an ETF's shares may not develop or be
maintained. Buying or selling ETF shares on an exchange may require
the payment of brokerage commissions.
ETFs trade like stocks, are subject to investment risk,
including possible loss of principal. The risks of investing in
ETFs typically reflect the risks associated with the types of
instruments in which the ETF invests. Diversification cannot assure
a profit or protect against loss.
The ETF will issue (or redeem) fund shares to certain
institutional investors known as "Authorized Participants"
(typically market makers or other broker-dealers) only in large
blocks of fund shares known as "Creation Units." BNY Mellon
Securities Corporation ("BNYMSC"), a subsidiary of BNY Mellon,
serves as a distributor of the fund. BNYMSC does not distribute
fund shares in less than Creation Units, nor does it maintain a
secondary market in fund shares. BNYMSC may enter into selected
agreements with Authorized Participants for the sale of Creation
Units of fund shares.
Bonds are subject to interest rate, credit,
liquidity, call and market risks, to varying degrees. Generally,
all other factors being equal, bond prices are inversely related to
interest-rate changes and rate increases can cause price declines.
High yield bonds involve increased credit and liquidity risk
than higher rated bonds and are considered speculative in terms of
the issuer's ability to pay interest and repay principal on a
timely basis.
The fund's incorporation of ESG considerations into its
investment approach may cause it to make different investments than
funds that invest principally in equity securities of companies
that do not incorporate ESG considerations when selecting
investments. Under certain economic conditions, this could cause
the fund to underperform funds that do not incorporate ESG
considerations. For example, the incorporation of ESG
considerations may result in the fund forgoing opportunities to buy
certain securities when it might otherwise be advantageous to do so
or selling securities when it might otherwise be disadvantageous
for the fund to do so. The incorporation of ESG considerations may
also affect the fund's exposure to certain sectors and/or types of
investments, and may adversely impact the fund's performance
depending on whether such sectors or investments are in or out of
favor in the market.
Past performance is no guarantee of future results.
This material has been distributed for informational purposes
only and should not be considered as investment advice or a
recommendation of any particular investment, strategy, investment
manager or account arrangement, and should not serve as a primary
basis for investment decisions. Please consult a legal, tax or
financial professional in order to determine whether an investment
product or service is appropriate for a particular situation.
Unless otherwise specified herein, all information is sourced by
BNY Mellon as of December 3, 2021.
This press release is qualified for issuance in the United States and is for informational
purposes only. It does not constitute an offer or solicitation of
securities or investment services or an endorsement thereof in any
jurisdiction or in any circumstance in which such offer or
solicitation is unlawful or not authorized. This material does not
take into account the particular investment objectives,
restrictions, or financial, legal, or tax situation of any specific
investor. Investors should consult a legal, tax, or financial
professional in order to determine whether an investment product or
service is appropriate for a particular situation.
Not FDIC-Insured | No Bank Guarantee | May Lose
Value
©2022 BNY Mellon Securities Corporation, distributor,
240 Greenwich St., New York, NY
10286.
For Press:
Courtney
Woolston
BNY Mellon Investment Management
Courtney.Woolston@bnymellon.com
1 As of December 31,
2021. (Also includes Wealth Management)
2 As at December 31,
2021. Assets under management (AUM) are represented by the
value of cash securities and other economic exposure managed for
clients. Figures shown in USD. Foreign Exchange (FX) rates as per
WM Reuters 4pm spot rates. Reflects
the AUM of Insight, the corporate brand for certain companies
operated by Insight Investment Management Limited (IIML). Insight
includes, among others, Insight Investment Management (Global)
Limited (IIMG), Insight Investment International Limited (IIIL),
Insight Investment Management (Europe) Limited (IIMEL) and Insight North
America LLC (INA), each of which provides asset management
services.
3 As at December 31,
2021. The ESG assets under management figure shown reflects
the sum of assets to which one or more of the following criteria
apply within the investment guidelines/objectives of segregated
mandates/strategies/pooled funds: exclusions, sustainability goals,
managed using an ESG benchmark, ESG enhancement, best in class,
impact or climate change related approaches. Assets under
management (AUM) are represented by the value of cash securities
and other economic exposure managed for clients. Figures shown in
USD. FX rates as per WM Reuters 4pm
spot rates. Reflects the AUM of Insight, the corporate brand for
certain companies operated by Insight Investment Management Limited
(IIML). Insight includes, among others, Insight Investment
Management (Global) Limited (IIMG), Insight Investment
International Limited (IIIL), Insight Investment Management
(Europe) Limited (IIMEL) and
Insight North America LLC (INA), each of which provides asset
management services.
4 Signatories to the PRI pay an annual fee. They are
required to report annually on their responsible investment
activities and they receive ratings based on their reported data.
Full details of PRI reporting and assessment methodology are
available at
www.unpri.org/signatories/signatory-accountability/about-pri-reporting.
More details of Insight's PRI ratings are available at
https://www.insightinvestment.com/united-states/nav/responsible-investment/pri-ratings/
5 A voluntary code for asset managers, asset owners
and service providers, managed and overseen by the Financial
Reporting Council (FRC). To become a signatory to the Code,
organizations must submit to the FRC a Stewardship Report
demonstrating how they have applied the Code's Principles in the
previous 12 months. The FRC will assess the report and if it meets
reporting expectations, the organization will be listed as a
signatory to the Code. Once listed, organizations must annually
report to remain signatories. More information is available at
https://www.frc.org.uk/investors/ukstewardship-code.
6 As of 31 December 31,
2021. Measured using the Bloomberg Global Aggregate Credit Index,
excluding non-corporate and non-debt constituents, using the total
weight of the remaining benchmark instruments. This index consists
mostly of investment grade corporate bonds.
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SOURCE BNY Mellon Investment Management