BNY Mellon Global Credit Fund

Investment rationale

BNY Mellon Global Credit Fund is a global bond fund whose objective is to achieve a total return from income and capital growth. The USD W (Acc.) share class has a recommended holding period of 3 years and a Summary Risk Indicator of 2 out of 7, indicating a low risk class. It is intended for investors who plan to stay invested for at least 3 years, are prepared to take on a low level of risk of loss to original capital, and want it to form part of a portfolio of investments. Its distinct role is as an actively managed global credit allocation with ESG exclusions and broad use of debt, derivatives, and both developed and emerging market exposures, while still keeping at least 51% of holdings in or recently fallen out of the benchmark universe.

2026-08-31

How the strategy works

The fund seeks total return from income and capital growth and measures performance against the Bloomberg Global Aggregate Credit TR Index USD Hedged. It invests primarily in global credit markets with no geographical, industry or sector focus, and also in non-credit debt and debt-related securities issued by governments; the portfolio as at 31 August 2026 includes investment grade corporates, government bonds, securitised non-agency exposure, high yield corporates, emerging market corporates, emerging market sovereigns and cash. The fund may invest up to 20% of NAV in asset-backed and mortgage-backed securities, including up to 10% in aggregate in CMOs, CDOs and CLOs; up to 50% in certain subordinated debt; more than 20% in emerging markets; up to 25% in sub-investment grade debt; up to 10% in transferable securities not admitted to an eligible market, 10% in unsecuritised loan participations/assignments, 10% in CoCos, and 10% in other collective investment schemes. It may also invest in unrated debt and debt-related securities. It uses derivatives both to help achieve the investment objective and for risk or cost reduction or to generate additional capital or income, can invest on a long and short basis, and the USD W (Acc.) share class retains net income within the fund rather than distributing it.

2026-08-31

Investment philosophy

• The portfolio is built from global credit markets without a geographic, industry or sector focus, and may also hold government-issued debt and debt-related securities; the benchmark is the Bloomberg Global Aggregate Credit TR Index USD Hedged.

• The fund is actively managed, but the benchmark remains a strong anchor: at least 51% of holdings will either be benchmark constituents at the next rebalancing date or securities that were benchmark constituents when purchased and later rolled out because their maturity fell below one year.

• The manager can invest outside the benchmark and use derivatives to pursue the objective, reduce risk or cost, or generate additional capital or income; the fund can also invest on a long and short basis and applies ESG exclusions to direct corporate investments with material involvement in activities deemed environmentally or socially harmful.

• Positioning as at 31 August 2026 shows 505 holdings across 260 issuers, with 73.7% in investment grade corporates, 7.8% in government, 7.4% in securitised non-agency, 3.7% in high yield corporates, 3.3% in emerging market corporates, 2.9% in emerging market sovereigns and 1.3% in cash; the top 10 issuers represent 12.5%.

• The portfolio is diversified by region and maturity, with regional weights led by the US at 40.5%, Europe at 37.6% and Asia at 10.3%; average rating is A2, duration is 5.9 years, and the credit-quality mix is concentrated in A and BBB bonds, with smaller allocations to AAA, AA and below-investment-grade holdings.

2026-08-31

Management team

The fund managers are Adam Whiteley and Shaun Casey, with Alex Schiffeldrin as alternate.

2026-08-31

Distinctive features

A distinguishing feature is the combination of an actively managed global credit strategy with explicit benchmark discipline, since the benchmark covers a significant proportion of the investable universe and at least 51% of holdings must remain in or recently derived from it. The mandate is broad across instruments, allowing investment grade and sub-investment grade credit, government debt, securitised assets, subordinated debt, loans, CoCos, emerging markets and derivatives within stated limits. The portfolio is also diversified in practice, with 505 holdings across 260 issuers and regional exposure spread across the US, Europe, Asia and other regions. For the USD W (Acc.) share class, the annual management charge is 0.40%, and dealing is available each business day.

2026-08-31

Risks

The USD W (Acc.) share class has a Summary Risk Indicator of 2 out of 7 and a recommended holding period of 3 years. The value of investments can fall and investors may not get back the amount invested, and income from investments may vary and is not guaranteed. Specific risks include currency risk from investing in international markets, geographic concentration risk where the fund invests significantly in a single market, derivatives risk from the use of highly sensitive instruments that can magnify gains and losses, interest-rate and inflation risk for bonds and money market securities, credit risk and lower-rated or unrated bond risk, emerging markets risk, counterparty risk, and ESG investment approach risk arising from exclusions and reliance on third-party ESG data. Structural features that drive these risks include the ability to invest more than 20% in emerging markets, up to 25% in sub-investment-grade debt, up to 20% in ABS/MBS, up to 50% in certain subordinated debt, up to 10% in CoCos, use of long and short positions, and extensive derivative usage.

2026-08-31

Asset manager

The fund is a sub-fund of BNY Mellon Global Funds, plc, an Irish UCITS vehicle. The management company is BNY Mellon Fund Management (Luxembourg) S.A., regulated by the CSSF in Luxembourg. Investment managers are appointed by BNY Mellon Investment Management EMEA Limited, BNY Mellon Fund Managers Limited, BNY Mellon Fund Management (Luxembourg) S.A. or affiliated fund operating companies, and BNY Investments is the brand name for the investment management business of BNY and its investment firm affiliates worldwide.

2026-08-31