BNY Mellon Global Short-Dated High Yield Bond Fund

Investment rationale

The fund is a global short-dated high yield bond strategy with an objective to deliver positive returns greater than SOFR (90-day compounded) on a rolling 3-year basis, although positive returns are not guaranteed and capital loss may occur. It is intended for investors who plan to stay invested for at least 3 years and are prepared to take on a low level of risk of loss to original capital in order to seek a higher potential return. The PRIIPs Summary Risk Indicator for the USD A (Acc.) share class is 2 out of 7, and the fund is designed to form part of a portfolio of investments. Its distinct exposure comes from investing mainly in short-dated, high yielding global bonds, including sub-investment grade and unrated securities, with the ability to use long and short positions and derivatives.

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How the strategy works

The objective is to deliver positive returns greater than the Cash Benchmark, SOFR (90-day compounded), on a 3 year rolling basis. The fund invests the majority of its NAV in a portfolio of short-dated high yielding bonds that mature, or are expected to mature, within approximately 3 years, with no geographical, industry or sector focus; it may invest in debt and debt-related securities that are investment grade, sub-investment grade or unrated. It may invest more than 20% of NAV in emerging markets, up to 10% in other collective investment schemes, up to 10% in unsecuritised loan participations and/or loan assignments, and up to 10% in aggregate in transferable securities or money market instruments not admitted to or dealt in on an Eligible Market; it may also hold a majority of NAV in cash, liquid or near cash assets to protect value. The fund can invest on a long and short basis and uses derivatives both to help achieve the investment objective and for risk or cost reduction or to generate additional capital or income. The benchmark is used as a target to measure performance on a rolling annualised 3-year basis before fees, the fund is actively managed, net income is retained in the accumulation share class, and the recommended holding period is 3 years.

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Investment philosophy

• The portfolio is built mainly from high yielding short-dated bonds, defined as bonds that mature or are expected to mature within approximately 3 years, and it can also invest in other debt and debt-related securities.

• The investment universe is global and has no stated geographical, industry or sector focus; securities may be investment grade, sub-investment grade or unrated, and the fund may invest more than 20% of NAV in emerging markets.

• The fund is actively managed, can invest on both a long and short basis, and uses derivatives both to pursue the investment objective and for risk or cost reduction or to generate additional capital or income.

• ESG features are built into the process through Article 8 classification, a requirement to invest at least 5% of NAV in issuers meeting the SFDR definition of sustainable investment, exclusion of issuers involved in activities deemed environmentally or socially harmful, and a requirement that corporate issuers follow good governance practices.

• As at 31 May 2026, sector exposure was led by TMT at 16.7%, Building & Construction at 11.2%, Commercial services at 10.7%, and Energy - Oil & Gas at 9.2%; the largest issuer positions are Ithaca Energy North, Veon Midco Bv, Axalta Coat/Dutch Hld Bv, Grifols Sa and Albion Financing 3 Sarl, each at about 1.7% to 1.8% of NAV.

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Management team

The named fund managers are Catherine Braganza, Ulrich Gerhard and Lorraine Specketer.

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Distinctive features

The fund combines a short-dated maturity profile with a high yield bond remit, and it has broad flexibility across geographies, sectors and credit qualities. Its toolkit includes long and short positioning, derivatives, emerging market exposure, and the ability to move a majority of NAV into cash, liquid or near cash assets to protect value. The strategy also incorporates explicit ESG features through Article 8 classification, issuer exclusions and a minimum allocation to SFDR-defined sustainable investments. For the USD A (Acc.) share class, there is no entry or exit fee charged by the product itself, daily dealing is available on Irish business days, and the minimum initial investment is USD 5,000.

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Risks

the value of investments can fall and investors may not get back the amount invested, while income from investments may vary and is not guaranteed. The PRIIPs Summary Risk Indicator for the USD A (Acc.) share class is 2 out of 7. The fund is exposed to currency risk because it invests in international markets and returns may be affected by exchange-rate movements. Portfolio risks include geographic concentration risk, derivatives risk, changes in interest rates and inflation risk, credit ratings and unrated securities risk, credit risk, emerging markets risk and counterparty risk. The ESG investment approach may affect performance because restrictions on exposure to certain sectors or investments may affect performance, and the approach depends on third-party data that may be incomplete, inaccurate or inconsistent.

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Asset manager

The fund is a sub-fund of BNY Mellon Global Funds, plc, and the product is managed by BNY Mellon Fund Management (Luxembourg) S.A. The investment manager is Insight. BNY Mellon Fund Management (Luxembourg) S.A. is regulated by the Commission de Surveillance du Secteur Financier in Luxembourg. BNY is the corporate brand of The Bank of New York Mellon Corporation and its subsidiaries.

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