BNY Mellon Investment Management Expands Thematic Offering through Launch of “Future” Range
BNY Mellon Investment Management has unveiled its theme-focused ‘Future’ investment range with the launch of three strategies – Future Earth, Future Food and Future Life.
These strategies are actively managed global portfolios focused on investing in equities that are set to benefit from tailwinds associated with climate change, the revolution in food production and increased consumer demand from ageing populations, BNY Mellon Investment Management said in a press release.
The strategies will be available to accredited investors and professional investors in Singapore and Hong Kong respectively, says the firm.
The strategies are managed by Newton Investment Management, an investment firm part of BNY Mellon Investment Management, which has had a global thematic investment approach since its foundation in 1978. This approach uses a framework of investment themes to identify major areas of disruption and structural change in the world, which provides context to investment analysis and security selection, and helps to identify areas of potential investment opportunity and risk.
The ‘Future’ product range uses selected segments of this framework to define the universe for each of the strategies, allowing exposure to specific opportunities across traditional sectors and geographic regions:
- BNY Mellon Future Earth strategy invests in companies that proactively contribute to an overall shift towards helping protect the Earth’s environment and natural resources. The strategy draws ideas from Newton’s ‘Earth Matters’ theme, and considers a wide range of environmental concerns, including natural resource exhaustion, and its impact on government policy, company strategies and consumption behaviour. Four sub-themes of focus include efficient infrastructure, resource management & recycling, clean energy, and electric vehicles.
- BNY Mellon Future Food strategy invests in companies that are set to benefit from the myriad of opportunities associated with the demand for new food and technological innovations across the global food supply chain. Aspects for consideration include population growth, reduction in crop yields and demand for healthier foods. The strategy looks across three sub-themes of agriculture & production, food processing & innovation, and retail & consumption.
- BNY Mellon Future Life strategy invests in companies worldwide that are set to benefit from opportunities associated with an ageing global population and the changes this will drive in consumer demand for products and services. Changing population dynamics and growth in health-related industries are key drivers of the investment backdrop. The strategy focuses on four sub-themes: care & support, financial security, health innovation, and ‘living better’. Opportunities are explored across healthcare, leisure, financial services, housing and travel.
Nicolas Kopitsis, Head of Intermediary Asia Pacific ex Japan, BNY Mellon Investment Management, said: “Thematic investing has always been core to Newton’s investment philosophy since its inception over 40 years ago. Disruptive change is happening at a record pace across all elements of our lives. We believe that by identifying those changes early and investing in them over the long-term we can capitalise on these structural drivers of growth for our clients.”
“This gives our clients the chance to gain direct exposure to investment themes that we believe will deliver some of the most successful investment outcomes in the coming years. It also allows them to allocate to specific themes where they have most conviction in the long-term trends and will be of interest to investors seeking long-term thematic exposure,” Kopitsis continued.