The Two Actively Managed Thematic ETFs are Sub-Advised by Newton Investment Management
NEW YORK, May 17, 2023 — BNY Mellon Investment Management, one of the world’s largest asset managers with $1.9 trillion in assets under management1, today announced the launch of BNY Mellon Women’s Opportunities ETF (ticker: BKWO) and BNY Mellon Innovators ETF (ticker: BKIV). Listed on Nasdaq, both ETFs are sub-advised by Newton Investment Management North America, LLC (Newton), a BNY Mellon investment firm and a leading equity and multi-asset manager.
“This addition to our growing suite of ETFs provides investors with access to Newton’s deep experience in thematic investing,” said David DiPetrillo, Head of North America Distribution at BNY Mellon Investment Management. “Through Newton’s multi-dimensional research platform combined with fundamental research and analysis, these ETFs will enable investors to potentially benefit from themes we believe will drive economic and societal growth and progression.”
BNY Mellon Women’s Opportunities ETF
The BNY Mellon Women’s Opportunities ETF invests principally in companies that incorporate gender equitable practices in the workplace or provide products or services2 that enhance the ability of women to meet their work or other personal life responsibilities and needs, such as those relating to household responsibilities, dependent and elder care responsibilities, and gender-specific healthcare. The Fund is co-managed by Newton’s Julianne McHugh and Miki Behr.
As part of BNY Mellon Investment Management’s ongoing commitment to gender equality, the firm has partnered with Girls Inc., the non-profit organization that inspires all girls to be strong, smart, and bold through direct service and advocacy. In addition, BNY Mellon ETF Investment Adviser, LLC3, the Fund’s investment adviser, will contribute at least 10% of the management fee4 to Girls Inc5. The BNY Mellon Foundation will also provide grant funding to Girls Inc. and its New York affiliate, Girls Inc. of New York City, in recognition of their impactful work that equips girls and young women to reach their full potential.
“Gender gaps have economic impacts—if women and men participated equally in the economy a further US$28 trillion could be added to global annual gross domestic product by 20256,” said Ms. McHugh. “We believe that companies that support women, cultivate strong cultures, offer attractive benefit policies in the workplace, as well as deliver offerings which empower women, are positioned to better perform over time.”
BNY Mellon Innovators ETF
The BNY Mellon Innovators ETF invests in innovation-driven companies whose products and services seek to transform or disrupt the way we live and work. The Fund invests across all market capitalizations through a wide range of industries and sectors in seeking to capture transformational growth opportunities over a long-term horizon. The Fund is co-managed by Newton’s chief investment officer and head of equity, John Porter, and Edward Walter.
“Average company life spans have dropped sharply, with 52% of Fortune 500 companies having disappeared in the last 15 years7. Paired with COVID, which spurred innovation and disruption at an unprecedented rate, this provides many attractive investment possibilities in every corner of the economy,” said Mr. Porter. “Our broad interpretation of innovation, coupled with our institutional capabilities and deep experience of thematic investing, means we can look at emerging opportunities in the healthcare, information technology and consumer discretionary sectors among others.”
For more information on the BNY Mellon Women’s Opportunities ETF and BNY Mellon Innovators ETF, please visit: www.im.bnymellon.com/etf.
About BNY Mellon Investment Management
BNY Mellon Investment Management is one of the world’s largest asset managers, with $1.9 trillion in assets under management as of March 31, 2023. Through an investor-first approach, BNY Mellon Investment Management brings to clients the best of both worlds: specialist expertise from seven investment firms offering solutions across every major asset class, backed by the strength, stability, and global presence of BNY Mellon. Additional information on BNY Mellon Investment Management is available on www.bnymellonim.com.
BNY Mellon Investment Management is a division of BNY Mellon, BNY Mellon is a global investments company dedicated to helping its clients manage and service their financial assets throughout the investment lifecycle. Whether providing financial services for institutions, corporations or individual investors, BNY Mellon delivers informed investment and wealth management and investment services in 35 countries. As of March 31, 2023, BNY Mellon had $46.6 trillion in assets under custody and/or administration, and $1.9 trillion in assets under management. BNY Mellon can act as a single point of contact for clients looking to create, trade, hold, manage, service, distribute or restructure investments. BNY Mellon is the corporate brand of The Bank of New York Mellon Corporation (NYSE: BK). Additional information is available on www.bnymellon.com. Follow us on Twitter @BNYMellon or visit our newsroom at www.bnymellon.com/newsroom for the latest company news.
About BNY Mellon ETF Investment Adviser, LLC
BNY Mellon ETF Investment Adviser, LLC is a registered investment adviser with U.S Securities and Exchange Commission (SEC) and subsidiary of The Bank of New York Mellon Corporation. BNY Mellon ETF Investment Adviser, LLC has engaged its affiliate, Newton Investment Management North America LLC to serve as the funds’ sub-adviser.
About Newton Investment Management
The Newton Investment Management Group is used to collectively describe a group of affiliated companies that provide investment advisory services under the brand name ‘Newton’ or ‘Newton Investment Management’. Investment advisory services under the group of affiliated companies: Newton Investment Management Limited (NIM), Newton Investment Management North America LLC (NIMNA), and Newton Investment Management Japan Limited (NIMJ) are provided in the United Kingdom, in the United States, and in Japan respectively. NIMNA was established in 2021 and is comprised of the equity and multi-asset teams from an affiliate, Mellon Investments Corporation. NIMJ was established in March 2023 and is comprised of the Japanese equity management division of an affiliate, BNY Mellon Investment Management Japan Limited. In the United Kingdom, NIM is authorized and regulated by the Financial Conduct Authority (‘FCA‘), 12 Endeavour Square, London, E20 1JN, in the conduct of investment business. Registered in England no. 01371973. NIM and NIMNA are both registered as investment advisors with the Securities & Exchange Commission (‘SEC’) to offer investment advisory services in the United States. NIM’s investment business in the United States is described in Form ADV, Part 1 and 2, which can be obtained from the SEC.gov website or obtained upon request. Both firms are indirect subsidiaries of The Bank of New York Mellon Corporation (‘BNY Mellon‘). With assets under management of $103 billion as of March 31, 2023, Newton provides discretionary and non-discretionary investment advice to institutional clients, including U.S. and global pension funds, sovereign wealth funds, central banks, endowments, foundations, insurance companies, registered mutual funds, other pooled investment vehicles and other institutions. Its office locations include London, Japan, Boston, New York, San Francisco. News and other information about Newton is available at www.newtonim.com and via Twitter: @NewtonIM.
About Girls Inc.
Girls Inc. is a network of local organizations that works with schools and in communities across the United States and Canada. Through direct service and advocacy, Girls Inc. equips girls – particularly girls from low-income communities and girls of color – with the knowledge and skills to effect positive changes in their lives and to become leaders who will change the world. Professionally trained staff and volunteers provide mentorship, safe spaces, and programming that address the unique challenges girls face and are proven to help girls succeed. Together with partners and supporters, Girls Inc. is building the new generation of leaders. Join us at girlsinc.org.
In a study by the American Institutes of Research, girls who participate in the Girls Inc. experience demonstrated improved academic performance, school-related behaviors, physical activity, and leadership outcomes8. 90% of Girls Inc. girls agreed that they will graduate from college, and 81% of girls agreed that they could make a positive difference in their community9.
Investors should consider the investment objectives, risks, charges and expenses of a fund carefully before investing. To obtain a prospectus, or a summary prospectus, if available, that contains this and other information about a fund, contact your financial professional or visit im.bnymellon.com. Read the prospectus carefully before investing.
Main Risks
Equities are subject to market, market sector, market liquidity, issuer, and investment style risks, among other factors, to varying degrees. BNY Mellon Innovators ETF: There can be no assurance that a company identified as an innovation-driven company by Newton will ultimately introduce a new product or service or that such product or service may not be significantly delayed or have the affect Newton anticipated. The returns on a portfolio of securities that are viewed by Newton as innovation-driven companies may trail the returns of a portfolio that is not limited to securities of innovation-driven companies. Investing only in securities of innovation-driven companies may affect the fund’s exposure to certain types of investments and may adversely impact the fund’s performance depending on whether such investments are in or out of favor in the market. The fund may significantly overweight or underweight certain companies, industries or market sectors, which may cause the fund’s performance to be more or less sensitive to developments affecting those companies, industries or sectors. BNY Mellon Women’s Opportunities ETF: The fund’s incorporation of Women’s Opportunities considerations into its investment approach may cause the fund to make different investments than funds that invest principally in equity securities but do not incorporate Women’s Opportunities considerations when selecting investments. Under certain economic conditions, this could cause the fund to underperform funds that do not incorporate Women’s Opportunities considerations.
The funds are non-diversified, which means that the funds may invest a relatively high percentage of its assets in a limited number of issuers. Therefore, performance may be more vulnerable to changes in the market value of a single issuer or group of issuers and more susceptible to risks associated with a single economic, political or regulatory occurrence than a diversified fund.
ETF shares are listed on an exchange, and shares are generally purchased and sold in the secondary market at market price. At times, the market price may be at a premium or discount to the ETF’s per share NAV. In addition, ETFs are subject to the risk that an active trading market for an ETF’s shares may not develop or be maintained. Buying or selling ETF shares on an exchange may require the payment of brokerage commissions. ETFs trade like stocks and are subject to investment risk, including possible loss of principal. The risks of investing in the ETF typically reflect the risks associated with the types of instruments in which the ETF invests. Diversification cannot assure a profit or protect against loss.
ETFs will issue (or redeem) fund shares to certain institutional investors known as “Authorized Participants” (typically market makers or other broker-dealers) only in large blocks of fund shares known as “Creation Units.” BNY Mellon Securities Corporation (“BNYMSC”), a subsidiary of BNY Mellon, serves as distributor of the ETF funds. BNYMSC does not distribute fund shares in less than Creation Units, nor does it maintain a secondary market in fund shares. BNYMSC may enter into selected agreements with Authorized Participants for the sale of Creation Units of fund shares.
This press release is qualified for issuance in the U.S. only and is for informational purposes only. It does not constitute an offer or solicitation of securities or investment services or an endorsement thereof in any jurisdiction or in any circumstance in which such offer or solicitation is unlawful or not authorized. This press release is issued by BNY Mellon Investment Management to members of the financial press and media and the information contained herein should not be construed as investment advice.
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1 AUM as of March 31, 2023.
2 Products and services include, among others, women’s health orientated products and services (e.g., breast health, obstetrics, gynecological care, osteoporosis imaging and management), infant nutrition, elder and childcare operators, healthy prepared meal delivery services, employment placing services and employment retraining services.
3 And/or certain of its affiliates.
4 Paid by the fund to BNY Mellon ETF Investment Adviser, LLC after any fee waivers and/or expense reimbursements by the Adviser.
5 The fund’s adviser intends to make financial contributions to one or more charitable or non-profit organizations which seek to promote the development, advancement and/or leadership of women and/or girls.
6 McKinsey Global Institute. “Ten things to know about gender equality” September 21, 2020.
7 Innosight; Statista estimates. CBInsights, published May 2021.
8 The Impact of Girls Inc. on Academic and Behavioral Outcomes. American Institutes for Research, 2020.
9 Annual Girls Inc. Strong, Smart, and Bold Outcomes Survey, 2022.
SOURCE BNY Mellon Investment Management
