A THEME-DRIVEN GLOBAL EQUITY PORTFOLIO THAT AIMS TO ACHIEVE LONG-TERM CAPITAL GROWTH BY PRIMARILY GAINING EXPOSURE TO COMPANIES LOCATED WORLDWIDE THAT ARE FOCUSED ON INNOVATION IN TRANSPORTATION AND RELATED TECHNOLOGIES.
WHY MOBILITY INNOVATION
Driverless delivery methods are more cost-efficient, and smart transport logistics mean the movement of goods becomes cheaper and faster
Vital areas, such as healthcare services, the hospitality industry, and service delivery, will all benefit from innovation
On-demand transportation removes the need to own a vehicle and reduces pollution
Source: Visual Capitalist, Intel and Strategy Analytics, published February 2018. Values represent projected global revenue from commercial services, new-uses and consumer development services by 2050, respectively. Newton Investment Management North America has reviewed the above research and believes the findings are still valid even without the inclusion of more recent data.
Today’s vehicles are increasingly connected to the world around them and are increasing resembling smartphones on wheels. Due to rising software content and more sensors per car, today’s vehicles are transforming into new cyber platforms that generate huge amounts of data. This data is analyzed to provide higher efficiency and improved safety
Autonomous, or self-driving cars, are still very much in our future. Before we reach this future, we will continue to see the industry introduce more smart features and infrastructure that will adapt to us and our existing vehicles.
Sharing will evolve from ridesharing services like Uber and Lyft to consumers moving away from owning vehicles to subscription models. This will also lead to broader data sharing relationships. As privacy laws take hold around the world, companies and consumers will begin to redefine how data is shared, stored and monetized. Consumers may begin to opt-in to new services and they will control how their personal data is used. This new relationship can expand trust with companies and fuel higher value added services.
The mobility industry has invested billions of dollars to bring electric powertrains to market. Electric power trains offer the potential of reducing transportation emissions that account for over 25% of the world’s total emissions. Thanks to this investment, electric power is nearing the inflection point of replacing combustion engines that been in use for over a century. Today, we see not only an opportunity to invest in electric cars, but in other types of businesses including commercial trucks, buses, bikes and in the future, aircraft.
SSources: Bottom left: McKinsey Center for Future Mobility as at September 2017. Bottom right: Bloomberg New Energy Finance as at 21 May 2018.
Newton Investment Management North America has reviewed the above research and believes the findings are still valid even without the inclusion of more recent data.
Mobility Innovation is not limited to electrification, but looks to all forms of power for mobility. Compared to battery electric vehicles (BEVs), a compelling feature possible for fuel cell electric vehicles (FCVs) powered by hydrogen is enjoying faster refuelling times resulting in less disruption to driver routes. Perhaps not for widespread individual use at first, we do foresee the most likely application to start with the commercial/truck segment of the market – primarily for long haul, heavy duty trucks. There is much still to be solved for and develop but, as we drive towards the next horizons of greener energy solutions, we are positive on hydrogen as an alternative fuel source playing a role in the future energy mix.
*BEV –Battery Electric Vehicles, FCV –Fuel Cell Vehicles. Source: Green Car Reports and NIMNA
WHY THIS FUND
The Fund seeks to deliver capital growth by investing in businesses that are likely to benefit from a massive shift in how we use, power, and control all means of mobility.
The portfolio has a wide enough interpretation of Mobility to create a well diversified, broad product both in terms of sectors and stock selection. The strict screening and ranking of stocks however, ensures there is no drift and that all holdings are highly integrated into the theme or in the process of changing their businesses to be so.
Within the proprietary universe of companies materially exposed to the theme, the portfolio leadership team manages an investment process built around fundamental security selection. Bottoms-up fundamental research analysts collaborate with specialist researchers focused on private markets, investigative, forensic, geopolitical, responsible investing and quantitative techniques to uncover as much of the full mosaic in order to generate the best ideas for the portfolio. The portfolio leadership team will explore up and down value chains or across industries relevant to the theme to try to capture the best long-run risk-for-reward opportunities and construct a well-diversified risk-managed portfolio.
The team behind the fund has been providing dedicated thematic solutions to investors since 2011. The Fund is managed by a highly experienced team with an average of 25 years industry experience and a strong track record in fundamental analysis.
ABOUT THE FUND
Minimum initial investment
USD10,000
ISIN
IE00BZ199S13
Benchmark
MSCI AC World NR Index
Launch date
1 August 2018
Minimum initial investment
EUR10,000
ISIN
IE00BZ1HLQ76
Benchmark
MSCI AC World NR Index
Launch date
11 November 2018
*Please note that each SFC-authorized sub-fund of BNY Mellon Global Funds, plc is not aiming to incorporate ESG factors as its key investment focus and, as such, does not constitute an ESG fund pursuant to the Circular to management companies of SFC- authorized unit trusts and mutual funds - ESG funds issued by the SFC on 29 June 2021. Other funds which are not authorized for offering to retail investors may or may not constitute ESG funds (where defined in the relevant local jurisdiction).
The Fund transitioned investment manager from BNY Investments Mellon, LLC to BNY Investments Newton North America LLC on 1st September 2021.
Past performance is not indicative of future performance. The value of investments and the income from them is not guaranteed and can fall as well as rise due to stock market and currency movements. When you sell your investment you may get back less than you originally invested.
Key investment risks
Objective/Performance Risk:There is no guarantee that the Fund will achieve its objectives.
Currency Risk: This Fund invests in international markets which means it is exposed to changes in currency rates which could affect the value of the Fund.
Derivatives Risk: Derivatives are highly sensitive to changes in the value of the asset from which their value is derived. A small movement in the value of the underlying asset can cause a large movement in the value of the derivative. This can increase the sizes of losses and gains, causing the value of your investment to fluctuate. When using derivatives, the Fund can lose significantly more than the amount it has invested in derivatives.
Emerging Markets Risk: Emerging Markets have additional risks due to less-developed market practices.
Market Capitalisation Risk: Investments in the securities of small to mediumsized companies (by market capitalisation) may be riskier and less liquid (i.e. harder to sell) than large companies. This means that their share prices may have greater fluctuations. Counterparty Risk: The insolvency of any institutions providing services such as custody of assets or acting as a counterparty to derivatives or other contractual arrangements, may expose the Fund to financial loss.
Mobility Innovation Companies Risk: The value of investments in Mobility Innovation Companies may be negatively impacted by changes in regulation and are dependent upon consumer and business acceptance of new technologies. The Fund’s value may be more subject to market fluctuations than if it invested in a broader range of economic sectors.
Share Class Hedging Risk: The hedging strategy is used to reduce the impact of exchange rate movements between the share class currency and the base currency. It may not completely achieve this due to factors such as interest rate differentials.
Share Class Currency Risk: Share classes may be denominated in a different currency from the base currency of the Fund. Changes in the exchange rate between the share class currency and the base currency may affect the value of your investment.
WARNING
This document is not intended as investment advice. This material is for retail investors and is not intended as investment advice. Investment involves risk. Past performance is not a guide to future performance. The offering document of the fund(s) and the Key Facts Statements (KFS) should be read for further details including the risk factors, in particular (where relevant) those associated with investments in emerging markets or using financial derivative instruments for investment purposes. Past performance information presented is not indicative of future performance. Investment returns may be exposed to exchange rate fluctuations. The value of investments may go down or up. This document has not been reviewed by the Securities and Futures Commission. You should not rely on this document alone to make investment decisions. If you are in any doubt about any of the contents of this document, you should obtain independent professional advice. This document may not be used for the purpose of an offer or solicitation in any jurisdiction or in any circumstances in which such offer or solicitation is unlawful or not authorised. This material should not be published or distributed without due authorization from issuer. No warranty is given as to the completeness of this information and no liability is accepted for omissions in such information. The Fund is a sub-fund of BNY Mellon Global Funds, plc (BNY MGF), an open-ended investment company with variable capital (ICVC) with segregated liability between sub-funds. Incorporated with limited liability under the laws of Ireland and authorised by the Central Bank of Ireland as a UCITS fund. The Fund may not be registered for sale in some markets. In Hong Kong, the issuer of this document is BNY Mellon Investment Management Hong Kong Limited, which is registered with the Securities and Futures Commission (Central Entity Number: AQI762). This document has not been reviewed by the Securities and Futures Commission. Information in this document is subject to change without notice. To the extent permitted by applicable laws, rules, codes and guidelines, BNY Mellon Investment Management Hong Kong Limited accepts no liability whatsoever whether direct or indirect that may arise from the use of or reliance on the information contained in this document. The information has been provided without taking into account the investment objective, financial situation or needs of any particular person. To the extent permitted by applicable laws, rules, codes and guidelines, BNY Mellon Investment Management Hong Kong Limited and its affiliates are not responsible for any subsequent investment advice given based on the information supplied. BNY Mellon Investment Management Hong Kong Limited and any other BNY Mellon entity mentioned are ultimately owned by The Bank of New York Mellon Corporation.
MC605-30-07-2025 (12M)
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