Previously, we explored why resilience matters more than ever in fixed income investing and how active management can help investors navigate a more uncertain market environment. The next step is implementation. For advisers seeking practical portfolio solutions, we believe the BNY Strategic Bond Fund and Responsible Horizons UK Corporate Bond Fund demonstrate how these principles of resilience can be put into action.
BNY Strategic Bond Fund
The BNY Strategic Bond Fund is designed for investors who want broad exposure across global fixed income markets without being constrained by a traditional benchmark. Managed by Insight Investment's specialist fixed income team, the Fund can invest across government bonds, investment-grade and high-yield credit, emerging-market debt and asset-backed securities. This flexibility allows the portfolio managers to respond to changing market conditions, adjusting asset allocation, interest-rate exposure and credit risk as opportunities emerge.
Rather than relying on a single source of return, the Fund combines top-down macroeconomic and government bond views with detailed bottom-up credit research. The team can actively allocate between different sectors, regions and risk factors, using a diversified range of return drivers. This unconstrained approach aims to help investors benefit from opportunities across the global bond universe while maintaining a disciplined focus on risk management. In today's environment of increasing geopolitical tensions, sticky inflation and persistent volatility, that adaptability can be a valuable source of portfolio resilience.
Responsible Horizons UK Corporate Bond Fund
For advisers looking for a more focused exposure, the Responsible Horizons UK Corporate Bond Fund offers a targeted solution within the sterling credit market. While benchmark-aware, the Fund is actively managed and driven primarily by credit selection rather than simply following index weights. This is an important distinction. Bond indices typically allocate more heavily to the largest borrowers, not necessarily the strongest or most attractively valued issuers. Insight's investment team seeks to identify companies with attractive risk-adjusted return potential while avoiding those where credit risks may be increasing and unrewarded in the market.
A key feature of the strategy is its rigorous research process. Dedicated credit analysts assess issuers from multiple perspectives, supported by proprietary tools such as Insight's "landmine checklist", which is designed to identify risks that could lead to a deterioration in credit quality before they become apparent to the wider market. Combined with active sector allocation and disciplined portfolio construction, this approach seeks to generate consistent excess returns while managing default and downgrade risks. The Fund also benefits from selective flexibility to invest beyond the core sterling investment-grade universe where attractive opportunities arise.
Insight’s platform
Although the two funds have different objectives, they share important foundations. Both draw on Insight Investment's extensive fixed income platform, which includes specialist teams covering global investment-grade and high-yield credit, rates, emerging markets, structured credit, currencies and responsible investment. This breadth of expertise supports a comprehensive research process and a multi-layered risk management framework designed to help portfolios adapt as market conditions evolve.
Ultimately, resilience is not simply about avoiding risk. It is about building portfolios that can respond to the changing market environment, identify opportunities and remain focused on long-term outcomes. Whether through the broad flexibility of the BNY Strategic Bond Fund or the targeted credit expertise of the Responsible Horizons UK Corporate Bond Fund, advisers have access to solutions designed to help clients navigate a more complex investment landscape.
To learn more, contact your BNY Investments representative or visit our fund centre to access the latest fact sheets, portfolio information and performance data.
The value of investments and the income received can fall as well as rise and investors may not get back the original amount invested.
Responsible Horizons UK Corporate Bond Fund
Investment objective
To generate a return through a combination of income and capital returns, whilst taking environmental, social and governance ("ESG") factors into account. The Fund targets the outperformance of the S&P iBoxx GBP Collateralized & Corporate Index after fees over any rolling three-year period (meaning a period of three years, no matter which day you start on). However, performance is not guaranteed and a capital loss may occur.
Performance Benchmark
The Fund will measure its performance against the S&P iBoxx GBP Collateralized & Corporate Index (the "Benchmark") after fees over any rolling three-year period (meaning a period of three years, no matter which day you start on). The Fund will use S&P iBoxx GBP Collateralized & Corporate Index as a target for the purposes of monitoring the risk taken in the Fund and the UK Investment Association's Sterling Corporate Bond NR Sector average as an appropriate comparator because it includes a broad representation of similar Sterling denominated funds that invest in corporate bonds. The Fund is actively managed, which means the Investment Manager has discretion to invest outside the Benchmarks, subject to the investment objective and policy as disclosed in the Prospectus.
On 1 April 2021, the Fund's name was changed from the BNY Mellon Corporate Bond Fund to the Responsible Horizons UK Corporate Bond Fund. The Fund's investment objective, investment policy and benchmark also changed at the same time. The past performance shown prior to this date was achieved under circumstances that no longer apply and is not comparable to performance achieved after this date.
Key Risks associated with this Fund
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.
Geographic Concentration Risk: Where the Fund invests significantly in a single market, this may have a material impact on 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.
Changes in Interest Rates & Inflation Risk: Investments in bonds/money market securities are affected by interest rates and inflation trends which may negatively affect the value of the Fund.
Credit Ratings and Unrated Securities Risk: Bonds with a low credit rating or unrated bonds have a greater risk of default. These investments may negatively affect the value of the Fund.
Credit Risk: The issuer of a security held by the Fund may not pay income or repay capital to the Fund when due.
CoCo's Risk: Contingent Convertible Securities (CoCo's) convert from debt to equity when the issuer's capital drops below a pre-defined level. This may result in the security converting into equities at a discounted share price, the value of the security being written down, temporarily or permanently, and/or coupon payments ceasing or being deferred.
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.
BNY Strategic Bond Fund
Investment Objective
To generate a return through a combination of income and capital returns, whilst taking environmental, social and governance ("ESG") factors into account.
Performance Benchmark
The Fund will measure its performance against the Investment Association Sterling Strategic Bond Sector as a comparator benchmark (the "Benchmark"). The Fund will use the Benchmark as an appropriate comparator because it represents a broad range of similar Sterling denominated bond funds that invest in corporate bonds. The Fund is actively managed, which means the Investment Manager has discretion over the selection of investments, subject to the investment objective and policies as disclosed in the Prospectus.
Key Risks associated with this Fund
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.
Geographic Concentration Risk: Where the Fund invests significantly in a single market, this may have a material impact on 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.
Changes in Interest Rates & Inflation Risk: Investments in bonds/money market securities are affected by interest rates and inflation trends which may negatively affect the value of the Fund.
Credit Ratings and Unrated Securities Risk: Bonds with a low credit rating or unrated bonds have a greater risk of default. These investments may negatively affect the value of the Fund.
Credit Risk: The issuer of a security held by the Fund may not pay income or repay capital to the Fund when due.
Emerging Markets Risk: Emerging Markets have additional risks due to less-developed market practices.
CoCo's Risk: Contingent Convertible Securities (CoCo's) convert from debt to equity when the issuer's capital drops below a pre-defined level. This may result in the security converting into equities at a discounted share price, the value of the security being written down, temporarily or permanently, and/or coupon payments ceasing or being deferred.
Responsible Investing Risk: The investment policy for this Fund places restrictions on its exposure to certain sectors or types of investments to reflect its responsible investing approach. The Fund's performance may be negatively impacted due to these restrictions in comparison to funds which do not have these restrictions. The Fund will not engage in securities lending activities and, therefore, may forego any additional returns that may be produced through such activities.
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.
2228332 Exp 31 March 2027
