BNY Mellon Global Equity Income Fund

Investor Summary

The fund is managed by experienced portfolio managers Jonathan Bell and Robert Hay, who have been collaboratively managing the Newton Global Equity Income strategy since 2020. Robert Hay began his career at Newton Investment Management in 2000 in the private client investment division and has managed various global equity mandates over his two-decade tenure. He holds an MA from Edinburgh University, a Master's in European Business from the EAP European School of Management in Paris, and is a CFA charterholder. Jonathan Bell serves as the lead portfolio manager and manages the Newton Global Equity Income strategy with extensive experience in global equity income approaches. Both managers are supported by Newton's in-house research analysts and the firm's management of £33.0 billion in equity income and value strategies, with the team averaging 25 years of investment experience.

Fund Strategy

The BNY Mellon Global Equity Income Fund employs a disciplined global equity income strategy managed by Newton Investment Management that focuses on durable and growing dividends. The strategy requires companies to yield at least 25% more than the global market for inclusion, with automatic selling when yields fall below market levels. The approach emphasizes dividend sustainability over yield chasing, focusing on companies with safe balance sheets and low payout ratios. The team believes income stocks provide protection from inflation and that the compounding of dividends is the dominant source of long-term real returns. The strategy maintains a contrarian view on market concentration, deliberately avoiding the largest technology companies while focusing on undervalued sectors where dividend yields remain attractive relative to fundamental prospects.

ANNUALIZED SINCE INCEPTION	QUARTERLY	YTD
9.5%	2.4%	2.4%

Executive Summary

BNY Mellon Global Equity Income Fund outperformed during a volatile quarter marked by geopolitical tensions in the Middle East. Energy was the standout sector as Iranian strikes closed the Strait of Hormuz, driving oil prices higher and benefiting holdings in Phillips66, ConocoPhillips, and Diamondback Energy. The fund trimmed these positions following the price spikes. Technology stocks faced pressure from AI valuation concerns, though the fund does not hold Microsoft due to its low yield. The manager added to Universal Music Group and Publicis, viewing market concerns about AI disruption as overdone. Looking forward, the fund expects interest rates to decline gradually while remaining elevated to combat inflation. The era of free money supporting growth stocks may be over, creating opportunities for income strategies. Dividend-paying stocks trade at discounts similar to the 2000 technology bubble, while concentration risk remains high in the Magnificent Seven technology stocks. The fund's strict yield discipline positions it differently from the broader market, with potential for attractive long-term returns despite short-term volatility from market rotations.

Forward Outlook

The fund expects global interest rates to decline very gradually from current peaks, with rates remaining elevated to combat inflation. The manager believes the era of free money supporting growth stocks may be over, while income stocks remain attractively valued at discounts similar to the 2000 technology bubble. Short-term market rotations may cause volatility but the fund is positioned for attractive long-term returns.

Date	Letter	Tickers	Keywords	Pitches	Quick Takes
Apr 21 2026	2026 Q1	BARC.L, COP, FANG, MSFT, PSX, PUB.PA, SGOB.PA, UMG.AS	AI, dividends, energy, Geopolitical, income, rates, valuation	-	Income-focused fund outperformed during geopolitical volatility, benefiting from energy exposure while trimming after oil price spikes. Added to AI-unfairly penalized names like Universal Music Group. Manager sees attractive valuations in dividend stocks at 2000-bubble-level discounts to growth names, positioning for long-term outperformance as free money era ends.
Jul 20 2025	2025 Q2	1299.HK, 8035.T, BA.L, BMY, CME, CSCO, D, ITX.MC, JCI, MDT, PHG, SBUX, SIEGY, SNY	defense, global, healthcare, income, tariffs, technology, valuation	-	BNY Mellon's income fund underperformed due to technology underweight and healthcare overweight during Q2's risk-on rally. Strict yield discipline excludes mega-cap tech names that drove market gains. Income stocks trade at compelling valuations reminiscent of 2000 bubble levels. Defensive positioning in healthcare, utilities and staples should outperform during volatility. Long-term outlook remains positive despite near-term headwinds.
Mar 31 2025	2025 Q1	1299.HK, AZN, B3SA3.SA, BAE.L, CME, CSCO, DEO, DPSGY, EL, JNJ, MDT, PUB.PA, SIEGY, SNY, STLA, TAP, UMG.AS	defense, dividends, Equity, global, income, inflation, rates, value	-	BNY Mellon Global Equity Income Fund significantly outperformed in Q1 2025 by avoiding low-yielding tech giants and focusing on dividend-paying sectors. Defense spending catalysts boosted BAE Systems while tariff concerns hurt consumer names. The team expects continued rotation from growth to income stocks as sticky inflation keeps rates higher for longer, favoring their defensive positioning.
Dec 31 2024	2024 Q4	1299.HK, AAPL, AMZN, AVGO, CME, CSCO, DPW.DE, EXC, FHN, GILD, GOOGL, IP, JCI, MDT, NVDA, PEP, SBUX, SNY, SYY, TSLA	dividends, financials, global, income, rates, technology, value	-	BNY Mellon Global Equity Income Fund's strict yield discipline prevented participation in Q4's mega-cap technology rally, causing underperformance. The team expects higher-for-longer rates to benefit their defensive positioning in dividend-paying sectors. Income stocks trade at compelling valuations reminiscent of the 2000 technology bubble, offering diversification as free money era ends.
Jun 30 2024	2024 Q2	005930.KS, AAPL, AZN, B3SA3.SA, BBRI.JK, CME, CSCO, D, DEO, GOOGL, IP, MDT, NEM, NVDA, PAYX, PEP, PG, SGO.PA, SMDS.L, SNY	dividends, global, income, rates, technology, value	-	BNY Mellon Global Equity Income Fund underperformed in Q2 due to zero weightings in AI beneficiaries Nvidia, Apple, and Alphabet, which cannot be held due to insufficient yields. The team expects higher-for-longer rates to favor income stocks trading at compelling discounts while maintaining overweight positions in defensive sectors.

Date

Letter

Tickers

Keywords

Pitches

Quick Takes

Apr 21 2026

2026 Q1

BARC.L, COP, FANG, MSFT, PSX, PUB.PA, SGOB.PA, UMG.AS

AI, dividends, energy, Geopolitical, income, rates, valuation

Income-focused fund outperformed during geopolitical volatility, benefiting from energy exposure while trimming after oil price spikes. Added to AI-unfairly penalized names like Universal Music Group. Manager sees attractive valuations in dividend stocks at 2000-bubble-level discounts to growth names, positioning for long-term outperformance as free money era ends.

Jul 20 2025

2025 Q2

1299.HK, 8035.T, BA.L, BMY, CME, CSCO, D, ITX.MC, JCI, MDT, PHG, SBUX, SIEGY, SNY

defense, global, healthcare, income, tariffs, technology, valuation

BNY Mellon's income fund underperformed due to technology underweight and healthcare overweight during Q2's risk-on rally. Strict yield discipline excludes mega-cap tech names that drove market gains. Income stocks trade at compelling valuations reminiscent of 2000 bubble levels. Defensive positioning in healthcare, utilities and staples should outperform during volatility. Long-term outlook remains positive despite near-term headwinds.

Mar 31 2025

2025 Q1

1299.HK, AZN, B3SA3.SA, BAE.L, CME, CSCO, DEO, DPSGY, EL, JNJ, MDT, PUB.PA, SIEGY, SNY, STLA, TAP, UMG.AS

defense, dividends, Equity, global, income, inflation, rates, value

BNY Mellon Global Equity Income Fund significantly outperformed in Q1 2025 by avoiding low-yielding tech giants and focusing on dividend-paying sectors. Defense spending catalysts boosted BAE Systems while tariff concerns hurt consumer names. The team expects continued rotation from growth to income stocks as sticky inflation keeps rates higher for longer, favoring their defensive positioning.

Dec 31 2024

2024 Q4

1299.HK, AAPL, AMZN, AVGO, CME, CSCO, DPW.DE, EXC, FHN, GILD, GOOGL, IP, JCI, MDT, NVDA, PEP, SBUX, SNY, SYY, TSLA

dividends, financials, global, income, rates, technology, value

BNY Mellon Global Equity Income Fund's strict yield discipline prevented participation in Q4's mega-cap technology rally, causing underperformance. The team expects higher-for-longer rates to benefit their defensive positioning in dividend-paying sectors. Income stocks trade at compelling valuations reminiscent of the 2000 technology bubble, offering diversification as free money era ends.

Jun 30 2024

2024 Q2

005930.KS, AAPL, AZN, B3SA3.SA, BBRI.JK, CME, CSCO, D, DEO, GOOGL, IP, MDT, NEM, NVDA, PAYX, PEP, PG, SGO.PA, SMDS.L, SNY

dividends, global, income, rates, technology, value

BNY Mellon Global Equity Income Fund underperformed in Q2 due to zero weightings in AI beneficiaries Nvidia, Apple, and Alphabet, which cannot be held due to insufficient yields. The team expects higher-for-longer rates to favor income stocks trading at compelling discounts while maintaining overweight positions in defensive sectors.

QUARTER	THEMES	TAGS
2026 Q1	Oil Energy was the standout sector during the quarter, with Phillips66, ConocoPhillips and Diamondback Energy being top performers due to oil price spikes from supply constraints following the closure of the Strait of Hormuz. The fund moderated its energy overweight following these price increases.	Energy Oil Price Supply Geopolitical
	AI Technology stocks came under pressure as investors worried about high AI valuations and expectations that AI could undermine businesses across data-driven industries. The fund views companies like Universal Music Group and Publicis as unfairly labeled as AI losers by the market.	Technology Valuations Disruption Market Sentiment
	Dividends As an income strategy with strict yield discipline, the fund is positioned differently to the global equity market. Stocks offering income at above-average rates continue to trade at a discount to low-income ones, with the scale of discount remaining at levels seen during the 2000 technology bubble.	Income Yield Valuation Strategy
	Rates The fund believes global interest rates have likely peaked but expects a very gradual decline, with rates needing to remain elevated to combat core inflation. The era of free money that supported growth stocks may be over.	Interest Rates Inflation Monetary Policy Growth Stocks
2025 Q2	Dividends The fund employs an income strategy with strict yield discipline, positioning it differently from the global equity market. Income stocks continue to trade at a discount to low-income stocks, with valuations remaining compelling despite recent market recognition of this opportunity.	Income Yield Valuation Discount Strategy
	AI The market moved to a risk-on environment boosting enthusiasm for artificial intelligence-related stocks. However, the fund cannot own mega-cap technology companies like NVIDIA, Microsoft and Broadcom due to their low-yielding nature, which dragged on relative performance.	Technology Mega-cap Performance Underweight
	Trade Policy Liberation Day tariffs imposed on US imports created tailwinds for companies like BAE Systems with US-based operations. A sector-by-sector analysis shows the fund is relatively well positioned with respect to tariffs due to high degree of 'local to local' manufacturing and sales.	Tariffs Manufacturing Mitigation Geographic
	Defense Spending BAE Systems benefited from European government pledges to significantly increase defence spending. The UK aerospace, military and information security company also gained from Liberation Day tariffs as more than half of its manufacturing facilities are based in the US.	European Military Aerospace Government
2025 Q1	Defense Spending NATO members' pledges to significantly increase defense spending due to US pressure boosted defense stocks like BAE Systems, which reported record annual profits for 2024 and huge increase in sales guidance for 2025.	Defense NATO Military Weapons Spending
	Dividends The fund is positioned as an income strategy with key overweight positions in dividend-paying sectors like consumer staples, healthcare, and utilities, balanced with defensive financials expected to benefit from pricing power in higher interest rate environment.	Income Yield Dividend Payout Distribution
	Inflation Core inflation remains sticky due to long-term trends like deglobalization and decarbonization. The world continues transitioning from ultra-low inflationary environment with wages rising from tighter immigration policies and greater protectionism exploiting regional prices.	Prices Wages Sticky Core Persistent
2024 Q4	Dividends The fund maintains strict yield discipline and cannot hold mega-cap technology stocks due to their low yields. Income stock valuations remain compelling, with stocks offering above-average income rates trading at substantial discounts to low-income stocks. The strategy has zero weightings in the magnificent seven technology stocks and instead focuses on dividend-paying sectors.	Income Yield Dividend Valuation Discount
	Rates The team believes interest rates will remain higher for longer to combat sticky core inflation driven by deglobalization and decarbonization trends. They expect defensive financials to benefit from strong pricing power in a higher interest rate environment. The era of free money beneficial for growth stocks is now over.	Interest Rates Inflation Monetary Policy Higher For Longer Pricing Power
	Value Income stock valuations are sitting at discount levels equivalent to those seen in 2000 when the technology bubble burst. The fund is positioned differently from the global equity market with overweight positions in defensive sectors, potentially providing valuable diversification to passive and growth-oriented portfolios.	Valuation Discount Bubble Diversification Defensive
2024 Q2	Dividends The fund maintains strict yield discipline and cannot invest in stocks with insufficient yields, including the Magnificent Seven technology stocks. Income stocks continue to trade at substantial discounts to low-income stocks, with valuations at levels equivalent to the 2000 technology bubble burst.	Income Yield Valuation Discount Technology
	Rates The team believes interest rates will remain higher for longer to combat persistent core inflation driven by deglobalization and decarbonization trends. This environment is viewed as favorable for income stocks and defensive financials with strong pricing power.	Interest Rates Inflation Deglobalization Decarbonization Financials
	AI The fund has zero weightings in AI beneficiaries like Nvidia, Apple, and Alphabet due to their insufficient yields. These stocks performed strongly during the quarter on AI developments and product announcements, creating headwinds for the income-focused strategy.	Nvidia Apple Alphabet Technology Growth

QUARTER

THEMES

Oil

Energy was the standout sector during the quarter, with Phillips66, ConocoPhillips and Diamondback Energy being top performers due to oil price spikes from supply constraints following the closure of the Strait of Hormuz. The fund moderated its energy overweight following these price increases.

Energy Oil Price Supply Geopolitical

AI

Technology stocks came under pressure as investors worried about high AI valuations and expectations that AI could undermine businesses across data-driven industries. The fund views companies like Universal Music Group and Publicis as unfairly labeled as AI losers by the market.

Technology Valuations Disruption Market Sentiment

Dividends

As an income strategy with strict yield discipline, the fund is positioned differently to the global equity market. Stocks offering income at above-average rates continue to trade at a discount to low-income ones, with the scale of discount remaining at levels seen during the 2000 technology bubble.

Income Yield Valuation Strategy

Rates

The fund believes global interest rates have likely peaked but expects a very gradual decline, with rates needing to remain elevated to combat core inflation. The era of free money that supported growth stocks may be over.

Interest Rates Inflation Monetary Policy Growth Stocks

2025 Q2

Dividends

The fund employs an income strategy with strict yield discipline, positioning it differently from the global equity market. Income stocks continue to trade at a discount to low-income stocks, with valuations remaining compelling despite recent market recognition of this opportunity.

Income Yield Valuation Discount Strategy

AI

The market moved to a risk-on environment boosting enthusiasm for artificial intelligence-related stocks. However, the fund cannot own mega-cap technology companies like NVIDIA, Microsoft and Broadcom due to their low-yielding nature, which dragged on relative performance.

Technology Mega-cap Performance Underweight

Trade Policy

Liberation Day tariffs imposed on US imports created tailwinds for companies like BAE Systems with US-based operations. A sector-by-sector analysis shows the fund is relatively well positioned with respect to tariffs due to high degree of 'local to local' manufacturing and sales.

Tariffs Manufacturing Mitigation Geographic

Defense Spending

BAE Systems benefited from European government pledges to significantly increase defence spending. The UK aerospace, military and information security company also gained from Liberation Day tariffs as more than half of its manufacturing facilities are based in the US.

European Military Aerospace Government

2025 Q1

Defense Spending

NATO members' pledges to significantly increase defense spending due to US pressure boosted defense stocks like BAE Systems, which reported record annual profits for 2024 and huge increase in sales guidance for 2025.

Defense NATO Military Weapons Spending

Dividends

The fund is positioned as an income strategy with key overweight positions in dividend-paying sectors like consumer staples, healthcare, and utilities, balanced with defensive financials expected to benefit from pricing power in higher interest rate environment.

Income Yield Dividend Payout Distribution

Inflation

Core inflation remains sticky due to long-term trends like deglobalization and decarbonization. The world continues transitioning from ultra-low inflationary environment with wages rising from tighter immigration policies and greater protectionism exploiting regional prices.

Prices Wages Sticky Core Persistent

2024 Q4

Dividends

The fund maintains strict yield discipline and cannot hold mega-cap technology stocks due to their low yields. Income stock valuations remain compelling, with stocks offering above-average income rates trading at substantial discounts to low-income stocks. The strategy has zero weightings in the magnificent seven technology stocks and instead focuses on dividend-paying sectors.

Income Yield Dividend Valuation Discount

Rates

The team believes interest rates will remain higher for longer to combat sticky core inflation driven by deglobalization and decarbonization trends. They expect defensive financials to benefit from strong pricing power in a higher interest rate environment. The era of free money beneficial for growth stocks is now over.

Interest Rates Inflation Monetary Policy Higher For Longer Pricing Power

Value

Income stock valuations are sitting at discount levels equivalent to those seen in 2000 when the technology bubble burst. The fund is positioned differently from the global equity market with overweight positions in defensive sectors, potentially providing valuable diversification to passive and growth-oriented portfolios.

Valuation Discount Bubble Diversification Defensive

2024 Q2

Dividends

The fund maintains strict yield discipline and cannot invest in stocks with insufficient yields, including the Magnificent Seven technology stocks. Income stocks continue to trade at substantial discounts to low-income stocks, with valuations at levels equivalent to the 2000 technology bubble burst.

Income Yield Valuation Discount Technology

Rates

The team believes interest rates will remain higher for longer to combat persistent core inflation driven by deglobalization and decarbonization trends. This environment is viewed as favorable for income stocks and defensive financials with strong pricing power.

Interest Rates Inflation Deglobalization Decarbonization Financials

AI

The fund has zero weightings in AI beneficiaries like Nvidia, Apple, and Alphabet due to their insufficient yields. These stocks performed strongly during the quarter on AI developments and product announcements, creating headwinds for the income-focused strategy.

Nvidia Apple Alphabet Technology Growth

Date	Pitch Type	Author	Ticker	Company	Industry	Sub Industry	Bull / Bear	Exchange	Keywords	Action
No Elevator Pitches found

Date

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Sub Industry

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TICKER	COMMENTARY
PSX	Phillips66, ConocoPhillips and Diamondback Energy were top performers over the quarter, all benefiting from the spike in the oil price due to supply constraints from the closure of the Strait of Hormuz. In March, we moderated the size of the Fund's energy overweight, the largest ever, following the price spikes, and this included trimming the holdings in these three stocks.
COP	Phillips66, ConocoPhillips and Diamondback Energy were top performers over the quarter, all benefiting from the spike in the oil price due to supply constraints from the closure of the Strait of Hormuz. In March, we moderated the size of the Fund's energy overweight, the largest ever, following the price spikes, and this included trimming the holdings in these three stocks.
FANG	Phillips66, ConocoPhillips and Diamondback Energy were top performers over the quarter, all benefiting from the spike in the oil price due to supply constraints from the closure of the Strait of Hormuz. In March, we moderated the size of the Fund's energy overweight, the largest ever, following the price spikes, and this included trimming the holdings in these three stocks.
MSFT	Microsoft was the biggest individual contributor over the quarter. The Fund does not hold Microsoft due to its inferior yield. Broad negative sentiment about perceived AI-disrupted industries weighed on the shares, particularly Microsoft's legacy software business segments. Investors also worried that the business's heavy investment in cloud infrastructure – particularly to support its AI ventures through its partnership with OpenAI – could weigh on returns.
UMG.AS	UMG and Publicis both continued to suffer from negative sentiment about perceived 'Al losers'. We believe investors have applied this sentiment unduly to these businesses and remain confident in the investment theses for the stocks, using the relative weakness to add to the holdings. After the reporting period, UMG received a takeover bid from investment management firm Pershing Square. The proposed deal, valued at $64 billion, underscores the inherent value of the business and pushed shares in UMG sharply higher at the start of April.
SGOB.PA	Expectations that interest rates would rise faster than previously forecast, together with a soft European construction environment, weighed on the performance of French construction materials supplier Saint-Gobain. The business is undergoing a structural transformation, but the market has not yet reflected the benefits of the enhancements in the valuation.
PUB.PA	UMG and Publicis both continued to suffer from negative sentiment about perceived 'Al losers'. We believe investors have applied this sentiment unduly to these businesses and remain confident in the investment theses for the stocks, using the relative weakness to add to the holdings.
BARC.L	Regarding Barclays, the combination of strong performance over 2025 and concerns about the conflict and private credit market led investors to take profits during the period.

TICKER

COMMENTARY

PSX

Phillips66, ConocoPhillips and Diamondback Energy were top performers over the quarter, all benefiting from the spike in the oil price due to supply constraints from the closure of the Strait of Hormuz. In March, we moderated the size of the Fund's energy overweight, the largest ever, following the price spikes, and this included trimming the holdings in these three stocks.

COP

FANG

MSFT

Microsoft was the biggest individual contributor over the quarter. The Fund does not hold Microsoft due to its inferior yield. Broad negative sentiment about perceived AI-disrupted industries weighed on the shares, particularly Microsoft's legacy software business segments. Investors also worried that the business's heavy investment in cloud infrastructure – particularly to support its AI ventures through its partnership with OpenAI – could weigh on returns.

UMG.AS

UMG and Publicis both continued to suffer from negative sentiment about perceived 'Al losers'. We believe investors have applied this sentiment unduly to these businesses and remain confident in the investment theses for the stocks, using the relative weakness to add to the holdings. After the reporting period, UMG received a takeover bid from investment management firm Pershing Square. The proposed deal, valued at $64 billion, underscores the inherent value of the business and pushed shares in UMG sharply higher at the start of April.

SGOB.PA

Expectations that interest rates would rise faster than previously forecast, together with a soft European construction environment, weighed on the performance of French construction materials supplier Saint-Gobain. The business is undergoing a structural transformation, but the market has not yet reflected the benefits of the enhancements in the valuation.

PUB.PA

BARC.L

Regarding Barclays, the combination of strong performance over 2025 and concerns about the conflict and private credit market led investors to take profits during the period.

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Investment Summary

Investor Summary

Fund Strategy

FUND PERFORMANCE AS OF 31st March 2026

Investor Letters

Latest Executive Summary:

Executive Summary

Core Thesis

Forward Outlook

Investment Themes

Oil

AI

Dividends

Rates

Dividends

AI

Trade Policy

Defense Spending

Defense Spending

Dividends

Inflation

Dividends

Rates

Value

Dividends

Rates

AI

Investor Pitches

Current Portfolio as of ( 31st March 2026 )

Key Risks identified by Manager:

Key catalysts include:

Portfolio Implications

Ticker Commentary

James A.Lydotes Top Holdings

Recent Buys (13F)

Recent Sells (13F)

13F Sector Summary

Portfolio Distribution

Latest 13D & 13G Filings

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BNY Mellon Global Equity Income Fund