On 2^nd August 2019, BNY Mellon Investment Management announced that Iain Stewart will be retiring in December 2019.  Following this news, the BNY Mellon Real Return fund remains on our Recommended list.

Mr Stewart joined Newton Investment Management (one of BNY Mellon Investment Management’s specialist asset managers) in 1985 and he is the original architect of the Real Return Strategy.  He became manager of the fund in 2004 and has overseen the strategy and the team as it has flourished over the years.

BNY Mellon Investment Management has been preparing for the retirement of Mr Stewart for a number of years.  He handed over day-to-day management of the fund in June 2018 to focus on providing strategic input to the Real Return team’s macro perspective and outlook.  Following his retirement, the management of the fund will continue to be led by Suzanne Hutchins, alongside Andy Warwick, Philip Shucksmith, Matthew Brown, Aron Pataki, Lars Middleton and Brendan Mulhern, as it is at present.

They are supported by a well-resourced global research team, incorporating analysts specialising in global equity sectors, credit, strategy and responsible investments.  As well as providing macro and strategic input to the Real Return Strategy, Mr Mulhern works with the Thematic, Quant & Strategy team, helping to develop the long-term themes that form the basis of Newton’s investment framework.

As a reminder, the BNY Mellon Real Return fund is a multi-asset fund that resides in the IA Targeted Absolute Return sector.  With its absolute return-focused objective, the team seeks to grow capital, but from a conservative perspective.  They do this by structuring the fund around a return-seeking core, complemented by a series of offsetting risk positions to dampen volatility.  The team flexes the fund’s sensitivity to market direction according to their global themes, risk/return assessments and valuations, although the capital preservation mantra is always at the forefront of their minds.

We have been meeting with Mr Stewart and other members of the Real Return team for several years as part of our coverage of the fund.  The strategy’s well-established investment philosophy, the collegiate approach and the distinctive character of the BNY Mellon Real Return fund are unchanged.

We send Mr Stewart our best wishes for his upcoming retirement.