The five risk-rated, multi-asset sustainable funds seek to help UK investors achieve their retirement goals.

BNY Mellon Investment Management, an asset manager with $1.8 trillion in assets under management, has launched BNY Mellon FutureLegacy, a new UK fund range consisting of five risk-rated sustainable multi-asset funds. 

FutureLegacy, which is registered for sale in the UK, will be sub advised by Newton Investment Management, a BNY Mellon Investment firm and specialist equity and multi-asset manager, the firm said in a statement.

Each fund is actively managed and designed to deliver capital growth with the potential for income over the long term, while being managed to a pre-defined level of risk. 

The funds are directly invested in sustainable companies, using a dynamic asset allocation risk framework to address changing market conditions across asset classes. This will enable advisors to recommend an investment solution to align with their clients’ individual financial needs, risk appetites and expectations both leading up to and during retirement, the firm continued.

The newly-formed FutureLegacy team is overseen by Mitesh Sheth, chief investment officer of Multi-Asset at Newton, with Joo Hee Lee, Lale Akoner and Martin Chambers as joint portfolio managers. Akoner recently joined Newton as a portfolio manager, after being at BNY Mellon Investment Management for over a decade as a senior investment strategist, the firm said. 

The fund range has been developed to help clients navigate the shift that is underway across global markets. After four decades of asymmetric monetary policy, structurally lower inflation, broad availability of credit and increasing globalisation, the backdrop for investors has shifted. The reversal of this benign market context, combined with an increased focus on environmental, social and governance factors has resulted in changing demands from multi-asset managers and this is at the core of why FutureLegacy has been developed, the firm continued.

Sheth said: “Against today’s market backdrop, investors require new solutions to meet their investment goals. Drawing on Newton’s multi-asset expertise and combining this with an investment strategy designed for the market environment, FutureLegacy will provide investors with a range of funds which aim to protect and grow their portfolios sustainably over the long-term. We will only be investing in companies around the world that are in line with Newton’s sustainable framework to ensure we are contributing towards the just energy transition.”

Michael Beveridge, head of UK intermediary distribution, BNY Mellon Investment Management, added: “The need for highly flexible, dynamic and active multi-asset solutions, with ESG built in, is a significant priority for our clients.”