On 20 September 2022, BNY Mellon Investment Management announced that Ilga Haubelt, Head of Equity Income at Newton Investment Management (‘Newton’, a subsidiary of BNY Mellon Investment Management) has left the firm to pursue other opportunities.  She was a co-lead manager of the BNY Mellon Global Income fund, alongside Jon Bell and Robert Hay.  Following this news, we are retaining the fund on our Recommended list.

Details of team changes

Subject to due process, she will be replaced in the role of Head of Equity Income by James Lydotes.  Based in Boston, Mr Lydotes is Newton’s Deputy Chief Investment Officer – Equities, and an existing member of the equity income team, with a US equity specialism.  Having worked closely with Ms Haubelt and the other members of the team, the expectation is that Mr Lydotes will be appointed the lead portfolio manager for the Global Equity Income strategy.  At present, he is the lead manager on an infrastructure fund and also an international equity fund.

With specific reference to the BNY Mellon Global Income fund, Jon Bell and Robert Hay continue in their co-portfolio manager roles, and will work on the fund alongside Mr Lydotes upon his assumption of the role.  They have worked at Newton for 27 and 22 years respectively and both have considerable experience in the global equity arena.

Continuity of approach

The investment approach underpinning BNY Mellon Global Income has a long heritage that prioritises income as the dominant source of long-term returns.  A framework of structural themes provides a focus for the firm’s large team of fundamental research analysts, and the portfolio managers favour companies that are expected to be beneficiaries of long-term, global changes.  This process, together with the strict dividend discipline that aims to provide an income premium, are unchanged.

Given the heritage of the investment approach, the long experience of the existing co-managers and the breadth of resources available to them, we are retaining the fund on our Recommended list, but, as with any important change, we will monitor the fund’s progress closely as these team changes settle down.