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BNY Mellon Global Funds, plcDated: 17 November, 2017
(Consolidated as of 31 January, 2018)
(An open-ended umbrella type investment company with variable
capital incorporated with limited liabilityunder the laws of
Ireland, registered number 335837, with segregated liability
between Sub-Funds)
Prospectus
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BNY Mellon Global Funds, plc (the “Company”) is an open-ended
umbrella type investment company with variable capital incorporated
withlimited liability under the laws of Ireland and authorised by
the Central Bank of Ireland pursuant to the European Communities
(Undertakings forCollective Investment in Transferable Securities)
Regulations, 2011 (SI. No 352 of 2011) (as amended). There exists
segregated liability betweenSub-Funds.
If you are in doubt about the contents of this Prospectus, you
should consult your stockbroker or other independent financial
adviser.
The Directors whose names appear under the heading “Management
and Administration of the Company” accept full responsibility for
theaccuracy of the information contained in this Prospectus. To the
best of the knowledge and belief of the Directors (who have taken
all care toensure that such is the case) such information is in
accordance with the facts and does not omit anything likely to
affect the import of suchinformation. The Directors accept
responsibility accordingly.
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PRELIMINARY
Authorisation of the Company and of its Sub-Funds is not
anendorsement or guarantee of the Company or its Sub-Fundsby the
Central Bank nor is the Central Bank responsible forthe contents of
this Prospectus. The authorisation of theCompany and of its
Sub-Funds by the Central Bank shall notconstitute a warranty as to
the performance of the Companyand of its Sub-Funds and the Central
Bank shall not be liablefor the performance or default of the
Company or its Sub-Funds.No person has been authorised to issue any
advertisement or togive any information, or to make any
representations in connectionwith the offering, placing,
subscription or sale of Shares other thanthose contained in this
Prospectus and, if issued, given or made,such advertisement,
information or representations must not berelied upon as having
been authorised by the Company. Neitherthe delivery of this
Prospectus nor the offer, placement, allotmentor issue of any of
the Shares shall under any circumstancescreate any implication or
constitute a representation that theinformation given in this
Prospectus is correct as of any timesubsequent to the date
hereof.
This Prospectus does not constitute, and may not be used for
thepurposes of, an offer or solicitation to anyone in any
jurisdiction inwhich such offer or solicitation is not authorised,
or to any personto whom it is unlawful to make such offer or
solicitation. Thedistribution of this Prospectus and the offering
of Shares in certainjurisdictions may be restricted and
accordingly, persons intowhose possession this Prospectus comes are
required to informthemselves about and to observe such
restrictions. Prospectiveinvestors should inform themselves as
to
a) the legal requirements within their own jurisdictions for
thepurchase or holding of Shares;
b) any foreign exchange restrictions which may affect them;
and
c) the income and other tax consequences which may apply intheir
own jurisdictions relevant to the purchase, holding ordisposal of
Shares.
The Shares have not been and will not be registered in the
UnitedStates under the Securities Act of 1933, as amended
(the“Securities Act”), or any U.S. state securities laws, and
neither anySub-Fund nor the Company has been or will be registered
in theUnited States under the Investment Company Act of 1940,
asamended (the “1940 Act”), and Shareholders will not be entitled
tothe benefits of such registration. Accordingly, except as
providedbelow, no Shares may be offered or sold, directly or
indirectly, inthe United States, any state thereof or its
territories orpossessions or to any U.S. Person. The Directors may
authorisethe offer and sale of Shares in the United States or to a
limitednumber or category of U.S. Persons provided that, if
soauthorised, Shares will be offered and sold only to such
personsand in such manner as will not require registration of
theCompany, any Sub-Fund, or the Shares under the securities lawsof
the United States or any state thereof. The Shares have notbeen
approved or disapproved by the United States Securitiesand Exchange
Commission, any state securities commission orother regulatory
authority in the United States, nor has any suchauthority passed
upon or endorsed the merits of this offering orthe accuracy or
adequacy of this Prospectus as may be amendedor supplemented from
time to time. Any representation to thecontrary is a criminal
offence. Certain restrictions also apply to anysubsequent transfer
of Shares in the United States or to U.S.Persons (please see the
compulsory redemption provisions underthe section entitled
“Restrictions on Ownership, CompulsoryRepurchase and Transfer of
Shares” in the Prospectus). Should a
Shareholder become a U.S. Person they may be subject toadverse
tax consequences including without limitation U.S.withholding taxes
and tax reporting.
Applicants will be required to certify that they are not
U.S.Persons precluded from purchasing, acquiring or holding
Shares.
This Prospectus relates to the Company which is not subject
toany form of regulation or approval by the Dubai Financial
ServicesAuthority (“DFSA”).
This Prospectus is intended for distribution only to persons of
atype specified in the DFSA’s Rules (i.e. “Qualified Investors”)
andmust not, therefore, be delivered to, or relied on by, any
othertype of person.
The DFSA has no responsibility for reviewing or verifying
anyProspectus or other documents in connection with this
Company.Accordingly, the DFSA has not approved this Prospectus or
anyother associated documents nor taken any steps to verify
theinformation set out in this Prospectus, and has no
responsibilityfor it.
The Shares to which this Prospectus relates may be illiquid
and/orsubject to restrictions on their resale. Prospective
purchasers ofthe Shares offered should conduct their own due
diligence on theShares.
If you do not understand the contents of this document youshould
consult an authorised financial adviser.
None of the Shares have been or will be registered under
theSecurities and Exchange law of Japan or with the JapanSecurities
Dealers Association. Accordingly, the Shares may notbe offered or
sold, directly or indirectly, in Japan or to residents ofJapan. The
Directors may, however, authorise the offer and sale ofShares to a
limited number or category of Japanese investorsand, if so
authorised, Shares will only be offered and sold to suchpersons and
in such manner as will not require registration of theShares with
the Securities and Exchange Law of Japan or withthe Japan
Securities Dealers Association.
The Company may at any time repurchase, or request the
transferof, Shares held by persons who are excluded from purchasing
orholding Shares as set out in “Restrictions on
Ownership,Compulsory Repurchase and Transfer of Shares”.
Application may be made to the Irish Stock Exchange for
theShares of any particular class or Sub-Fund to be admitted to
theOfficial List and to trading on the Main Securities Market of
theIrish Stock Exchange. The Directors do not expect that an
activesecondary market will develop in the Shares. The admission of
theShares to the Official List and to trading on the Main
SecuritiesMarket of the Irish Stock Exchange shall not constitute a
warrantyor representation by the Irish Stock Exchange as to
thecompetence of the service providers to or any other
partyconnected with the Company, the adequacy of
informationcontained in the Prospectus and Supplements or the
suitability ofthe Company for investment purposes.
Distribution of this Prospectus is not authorised after
thepublication of the latest half-yearly report of the Company
unless itis accompanied by a copy of that report, and is not
authorisedafter the publication of the annual report of the Company
unless itis accompanied by a copy of that report and, if
publishedsubsequently, the latest half-yearly report. Such reports
and eachrelevant Supplement to this Prospectus will form part of
thisProspectus.
Unless otherwise provided, statements made in this Prospectusare
based on the law and practice currently in force in Ireland andare
subject to changes in that law.
BNY Mellon Global Funds, plc – Preliminary 3
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Investors should note that investments in securities can be
volatileand their value may decline as well as appreciate. There
can beno assurance that a Sub-Fund will attain its objective.
The price of Shares as well as any income therefrom may godown
as well as up to reflect changes in the Net Asset Valueof a
Sub-Fund. The value of your investments may fluctuate.Past
performance provides no guarantee for the future. Aredemption fee
may be imposed which may differ betweenclasses and Sub-Funds (as
detailed in the Supplementshereto) and which shall at no time
exceed 3% of the totalredemption amount. The difference at any one
time betweenthe sale and repurchase price of the Shares means that
theinvestment should be viewed as medium to long-term.
Unless otherwise indicated in the relevant Supplement, feesand
expenses are only charged to capital where there isinsufficient
income to cover fees and expenses. Where all orpart of the fees
(including management fees), are charged tocapital, Shareholders
should note that capital may be erodedand this will have the effect
of lowering the capital value of aninvestment and constraining the
potential for future capitalgrowth. Thus, on redemptions of
holdings Shareholders maynot receive back the full amount
invested.
Attention is also drawn to the section headed “Risk
Factors”.
4 BNY Mellon Global Funds, plc – Preliminary
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CONTENTS
Preliminary . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
Directory . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
9
Definitions . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
10
The Company . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15
Establishment and Duration . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . 15
Structure . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15
Investment Objectives and Policies . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . 17
Investment and Borrowing Restrictions . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . 17
Cluster Munitions . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . 20
Financial Derivative Instruments . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . 20
Risk Management Process . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . 20
Efficient Portfolio Management . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . 20
Share Class Hedging . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . 22
Distribution Policy . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . 22
UK Reporting Fund Status . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . 23
Application for Shares . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . 23
Issue of Shares . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . 24
Repurchase of Shares . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . 25
Restrictions on Ownership, Compulsory Repurchase and Transfer of
Shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . 26
Compulsory Conversion of Shares . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . 26
Voluntary Switching and/or Conversion of Shares . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . 26
Transfer of Shares . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . 27
Calculation of Net Asset Value . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . 27
Dilution Adjustment . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . 29
Publication of Net Asset Value per Share . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . 30
Management and Administration of the Company . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . 31
Directors . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31
Manager . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31
Investment Managers . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . 32
Global Distributor . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . 32
Sub-Investment Managers . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . 33
Investment Advisors . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . 33
i-Hedge Administrator . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . 33
Administrator . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33
Depositary . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33
Distributors and Paying Agents . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . 34
Conflicts of Interest . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . 34
Soft Commissions and fee sharing arrangements . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . 35
Best Execution . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . 35
Voting Policy . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35
Class Actions Policy . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . 35
Fees and Expenses . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . 35
Error and Breach Correction Policies . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . 37
Accounts and Information . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . 37
Risk Factors . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38
General . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38
Political and/or Regulatory Risks . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . 38
BNY Mellon Global Funds, plc – Contents 5
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Currency Risk . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . 38
Investment Manager and Strategy Risk . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . 38
Index Tracking Risk . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . 38
Counterparty Risk . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . 38
Legal and Operational Risks Linked to Management Collateral . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . 39
Borrowing Risks . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . 39
Segregated Liability Risk . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . 39
Operation of Umbrella Cash Accounts . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . 39
Accounting, Auditing and Financial Reporting Standards . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . 39
Market Risk . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39
Concentration Risk . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . 40
Exchange Control and Repatriation Risk . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . 40
Emerging Markets Risk . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . 40
Sovereign Debt Risk . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . 40
Eurozone Risk . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . 40
Investment in Russia . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . 40
Investment in Mainland China . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . 40
Custody Risks and Settlement Risks . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . 41
Liquidity Risk . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . 41
Valuation Risk . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . 42
Securities Lending Risk . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . 42
Credit Risk . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42
Credit Ratings and Unrated Securities Risk . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . 42
Redemption Risk . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . 42
Changes in Interest Rates . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . 42
Global Financial Market Crisis and Governmental Intervention . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . 42
Market Disruptions . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . 43
Reliability of Information . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . 43
Real Estate Investment Trusts (REITs) . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . 43
Derivatives and Techniques and Instruments Risks . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . 43
Investment Manager Valuation Risk . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . 47
Market Capitalisation Risk . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . 47
Structured Products Risk . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . 47
Manager of Managers Risk . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . 48
Allocation Risk . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . 48
Taxation . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48
Foreign Account Tax Compliance Act . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . 48
Common Reporting Standard . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . 49
Volcker Rule . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . 49
US Bank Holding Company Act . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . 49
Cyber Security Risk . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . 49
Taxation . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
51
General . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51
Irish Taxation . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . 51
UK Taxation . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . 54
Compliance with US reporting and withholding requirements . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . 55
Common Reporting Standards (CRS) . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . 55
Appendix I . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
57
General Information . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . 57
Appendix II . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
63
Eligible Markets . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . 63
6 BNY Mellon Global Funds, plc – Contents
-
Appendix III . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
65
Use of Repurchase/Reverse Repurchase and Stocklending Agreements
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . 65
Securities Financing Transactions . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . 65
Management of Collateral . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . 65
Collateral Management Policy . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . 66
Appendix IV . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
68
Sub-Custodians . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . 68
Supplement 1 - BNY Mellon Asian Equity Fund
Supplement 2 - BNY Mellon Small Cap Euroland Fund
Supplement 3 - BNY Mellon Global Bond Fund
Supplement 4 - BNY Mellon Global Emerging Markets Equity Value
Fund*
Supplement 5 - BNY Mellon Global Equity Fund
Supplement 6 - BNY Mellon Global High Yield Bond Fund
Supplement 7 - BNY Mellon Global Opportunities Fund
Supplement 8 - BNY Mellon Pan European Equity Fund*
Supplement 9 - BNY Mellon S&P 500® Index Tracker
Supplement 10 - BNY Mellon U.S. Dynamic Value Fund
Supplement 11 - BNY Mellon Euroland Bond Fund
Supplement 12 - BNY Mellon Emerging Markets Debt Fund
Supplement 13 - BNY Mellon Emerging Markets Debt Local Currency
Fund
Supplement 14 - BNY Mellon Brazil Equity Fund
Supplement 15 - BNY Mellon Long-Term Global Equity Fund
Supplement 16 - BNY Mellon Global Property Securities Fund*
Supplement 17 - BNY Mellon Emerging Markets Equity Fund*
Supplement 18 - BNY Mellon Global Real Return Fund (USD)
Supplement 19 - BNY Mellon Global Real Return Fund (EUR)
Supplement 20 - BNY Mellon Global Opportunistic Bond Fund
Supplement 21 - BNY Mellon Global Equity Income Fund
Supplement 22 - BNY Mellon Global Dynamic Bond Fund
Supplement 23 - BNY Mellon Absolute Return Equity Fund
Supplement 24 - BNY Mellon Emerging Markets Local Currency
Investment Grade Debt Fund*
Supplement 25 - BNY Mellon Emerging Markets Corporate Debt
Fund
Supplement 26 - BNY Mellon Absolute Return Bond Fund
Supplement 27 - BNY Mellon European Credit Fund
Supplement 28 - BNY Mellon Global Real Return Fund (GBP)
Supplement 29 - BNY Mellon Emerging Markets Equity Core
Fund*
Supplement 30 - BNY Mellon Global Emerging Markets Fund
Supplement 31 - BNY Mellon Emerging Markets Debt Opportunistic
Fund
Supplement 32 - BNY Mellon Crossover Credit Fund*
Supplement 33 - BNY Mellon Japan Small Cap Equity Focus Fund
Supplement 34 - BNY Mellon Japan All Cap Equity Fund
Supplement 35 - BNY Mellon Asian Income Fund
Supplement 36 - BNY Mellon US Opportunities Fund
Supplement 37 - BNY Mellon Absolute Insight Fund
Supplement 38 - BNY Mellon Asian Bond Fund*
Supplement 39 - BNY Mellon Dynamic Total Return Fund
BNY Mellon Global Funds, plc – Contents 7
-
Supplement 40 - BNY Mellon Alpha Equity Select Fund
Supplement 41 - BNY Mellon Global Leaders Fund
Supplement 42 - BNY Mellon Targeted Return Bond Fund
Supplement 43 - BNY Mellon Global Credit Fund
Supplement 44 - BNY Mellon Asia Rising Stars Fund
Supplement 45 - BNY Mellon U.S. Equity Income Fund
Supplement 46 - BNY Mellon Global Short-Dated High Yield Bond
Fund
Supplement 47 - BNY Mellon Japan REIT Alpha Fund
Supplement 48 - BNY Mellon U.S. Municipal Infrastructure Debt
Fund
Supplement 49 - BNY Mellon Dynamic U.S. Equity Fund
Supplement 50 - BNY Mellon Global Unconstrained Fund
Supplement 51 - BNY Mellon Global Multi-Asset Income Fund
Supplement 52 - BNY Mellon U.S. High Yield Beta Fund
Supplement 53 - BNY Mellon Emerging Markets Debt Total Return
Fund
Supplement 54 - BNY Mellon Multi-Asset High Income Fund
First Addendum – BNY Mellon Global Funds, PLC (The “Company”) .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . .428
1. Change of Name of Investment Manager . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . .428
2. Change of Investment Managers . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . .428
3. Consequential deletions as a result of the changes above . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . .428
BNY MELLON S&P 500® INDEX TRACKER: S&P 500® is a
trademark of The McGraw-Hill Companies, Inc. and has been licensed
for use by BNY MellonGlobal Funds, plc. The BNY Mellon S&P 500®
Index Tracker is not sponsored, endorsed, sold or promoted by
Standard & Poor’s and Standard & Poor’smakes no
representation regarding the advisability of investing in the BNY
Mellon S&P 500® Index Tracker.
* please note that these Sub-Funds are closed to subscriptions
and are pending revocation from the Central Bank. Please see the
relevant Supplementsfor further information.
8 BNY Mellon Global Funds, plc – Contents
-
DIRECTORY
Q Registered OfficeOne Dockland CentralGuild StreetIFSCDublin
1D01E4X0Ireland
Q SecretaryTudor Trust Limited33 Sir John Rogerson’s QuayDublin
2Ireland
Q DirectorsDavid DillonMichael MeagherGreg BriskDavid
TurnbullJonathan Lubran
Q DepositaryBNY Mellon Trust Company (Ireland) LimitedOne
Dockland CentralGuild StreetIFSCDublin 1D01E4X0Ireland
Q Administrator, Registrar and Transfer AgentBNY Mellon Fund
Services (Ireland) Designated ActivityCompanyOne Dockland
CentralGuild StreetIFSCDublin 1D01E4X0Ireland
Q Legal Advisers in IrelandDillon Eustace33 Sir John Rogerson’s
QuayDublin 2Ireland
Q AuditorsErnst & YoungHarcourt CentreHarcourt StreetDublin
2Ireland
Q Global Distributor and PromoterBNY Mellon Investment
Management EMEA Limited(formerly “BNY Mellon Asset Management
InternationalLimited”)BNY Mellon Centre160 Queen Victoria
StreetLondon EC4V 4LAUnited Kingdom
Q ManagerBNY Mellon Global Management Limited33 Sir John
Rogerson’s QuayDublin, 2Ireland
Q Investment ManagersMellon Capital Management Corporation50
Fremont StreetSuite 3900San FranciscoCalifornia 94105United
States
The Boston Company Asset Management, LLCOne Boston Place14th
Floor, Suite 024-0141Boston MA 02108-4408United States
Newton Investment Management LimitedBNY Mellon Centre160 Queen
Victoria StreetLondon, EC4V 4LAUnited Kingdom
Standish Mellon Asset Management Company LLCBNY Mellon Center201
Washington Street, Suite 2900Boston, MA 02108-4408United States
Walter Scott & Partners LimitedOne Charlotte
SquareEdinburgh, EH2 4DRScotlandUnited Kingdom
ARX Investimentos Ltda.Avenida Borges de Medeiros, 633, 4th
floor, LeblonRio de Janeiro, R.J.BrazilZip Code: 22430-041
Alcentra NY, LLC200 Park Ave., 7th FloorNew York, NY 10166United
States
Insight Investment Management (Global) Limited160 Queen Victoria
StreetLondon, EC4V 4LAUnited Kingdom
BNY Mellon Asset Management Japan LimitedMarunouchi Trust Tower
Main1-8-3 Marunouchi, Chiyoda-kuTokyo 100-0005Japan
EACM Advisors LLC200 Connecticut AvenueNorwalkCT 06854United
States
BNY Mellon Global Funds, plc – Directory 9
-
DEFINITIONS
The following definitions apply throughout this Prospectus
unlessthe context otherwise requires:
Q “Administration Agreement”an agreement dated 13 March 2001
between the Managerand Mellon Fund Administration Limited, as
amended and asnovated by agreement between the Manager, Mellon
FundAdministration Limited and the Administrator dated 31 July2008,
as amended, supplemented or otherwise modified fromtime to time in
accordance with the requirements of theCentral Bank UCITS
Regulations 2015
Q “Administrator”BNY Mellon Fund Services (Ireland) Designated
ActivityCompany or any successor company appointed by theManager as
administrator of the Company and of each Sub-Fund in accordance
with the requirements of the CentralBank UCITS Regulations 2015
Q “Articles”the Memorandum and Articles of Association of
theCompany, as amended from time to time
Q “Board” or “Directors”the board of directors of the Company,
including dulyauthorised committees of the board of directors
Q “Business Day”any such day or days as set out in the relevant
Supplement
Q “Central Bank”the Central Bank of Ireland or any successor
body thereto
Q “Central Bank UCITS Regulations 2015”the Central Bank
(Supervision and Enforcement) Act 2013(Section 48(1)) (Undertakings
for Collective Investment inTransferable Securities) Regulations
2015, as may beamended, supplemented or replaced from time to time
andany related guidance issued by the Central Bank from time
totime
Q “Company”BNY Mellon Global Funds, plc
Q “Dealing Deadline”such day and time as specified in the
relevant Supplement forthe Sub-Fund
Q “Depositary”shall mean BNY Mellon Trust Company (Ireland)
Limited,which acts as depositary of the Company or any
successorcompany appointed by the Company with the prior approvalof
the Central Bank as depositary of the Company and ofeach
Sub-Fund
Q “Depositary Agreement”shall mean the custody agreement dated
13 March 2001between the Company and Mellon Trustees Limited,
asamended and as novated by agreement between theCompany, Mellon
Trustees Limited and the Depositary dated31 July 2008, as amended
and replaced by the depositaryagreement between the Company and the
Depositary dated1 July, 2016, as may be amended, substituted or
replacedfrom time to time subject to the requirements of the
CentralBank
Q “Eligible Markets”markets on which a Sub-Fund may invest, as
defined in theArticles as “Recognised Exchanges”. A list of such
markets iscontained in Appendix II hereto
Q “ESMA”shall mean the European Securities and Markets
Authority
Q “Exempt Irish Investor”• a pension scheme which is an exempt
approved scheme
within the meaning of Section 774 of the Taxes Act or
aretirement annuity contract or a trust scheme to whichSection 784
or 785 of the Taxes Act applies;
• a company carrying on life business within the meaningof
Section 706 of the Taxes Act;
• an investment undertaking within the meaning of Section739B(1)
of the Taxes Act;
• a special investment scheme within the meaning ofSection 737
of the Taxes Act;
• a charity being a person referred to in Section 739D(6)(f)(i)
of the Taxes Act;
• a unit trust to which Section 731(5)(a) of the Taxes
Actapplies;
• a qualifying fund manager within the meaning of
Section784A(1)(a) of the Taxes Act where the Shares held areassets
of an approved retirement fund or an approvedminimum retirement
fund;
• a qualifying management company within the meaning ofSection
739B of the Taxes Act;
• an investment limited partnership within the meaning ofSection
739J of the Taxes Act;
• a personal retirement savings account (“PRSA”)administrator
acting on behalf of a person who is entitledto exemption from
income tax and capital gains tax byvirtue of Section 787I of the
Taxes Act and the Sharesare assets of a PRSA;
• a credit union within the meaning of Section 2 of theCredit
Union Act, 1997;
• the National Asset Management Agency;• the National Treasury
Management Agency or a Fund
investment vehicle (within the meaning of section 37 ofthe
National Treasury Management Agency (Amendment)Act 2014) of which
the Minister for Finance is the solebeneficial owner, or the State
acting through the NationalTreasury Management Agency;
• a company which is within the charge to corporation taxin
accordance with Section 110(2) of the Taxes Act inrespect of
payments made to it by the Company or;
10 BNY Mellon Global Funds, plc – Definitions
-
• any other Irish Resident or persons who are OrdinarilyResident
in Ireland who may be permitted to own Sharesunder taxation
legislation or by written practice orconcession of the Revenue
Commissioners withoutgiving rise to a charge to tax in the Company
orjeopardising tax exemptions associated with theCompany giving
rise to a charge to tax in the Company;
provided that they have correctly completed the
RelevantDeclaration.
Q “FCA”the Financial Conduct Authority of 25 the North
Colonnade,Canary Wharf, London E14 5HS
Q “Global Distributor”BNY Mellon Investment Management EMEA
Limited
Q “Guidance”the Central Bank’s guidance issued from time to time
inrespect of the application of the Central Bank UCITSRegulations
2015
Q “Institutional Investors”Includes:
• undertakings or organisations such as a banks, moneymanagers
or other professionals in the financial sectorinvesting either on
their own behalf or on behalf ofInstitutional Investors or clients
under a discretionarymanagement agreement;
• insurance and reinsurance companies;
• pension funds;
• industrial, commercial and financial group companies;
• regional and local authorities;
• collective investment schemes;
• experienced and knowledgeable investors; and
• the structures which any of the above investor types putinto
place for the management of their own assets
Q “Intermediary”means a person who:
• carries on a business which consists of, or includes,
thereceipt of payments from an investment undertaking onbehalf of
other persons;
or
• holds shares in an investment undertaking on behalf ofother
persons
Q “Investment Advisor”any one or more investment advisors
appointed by anInvestment Manager to provide investment advice in
respectof the assets of a Sub-Fund
Q “Investment Managers”such parties appointed by the Manager
from time to time, toact as investment manager of the Sub-Funds in
accordancewith the requirements of the Central Bank UCITS
Regulations2015 and as set out in each Supplement to the
Prospectus
Q “Investment Management Agreement”an agreement between the
Manager and each of theInvestment Managers respectively, as
amended,supplemented or otherwise modified from time to time
inaccordance with the requirements of the Central Bank
Q “Ireland”the Republic of Ireland
Q “Irish Resident”means in the case of:
• an individual, means an individual who is resident inIreland
for tax purposes.
• a trust, means a trust that is resident in Ireland for
taxpurposes.
• a company, means a company that is resident in Irelandfor tax
purposes.
An individual will be regarded as being resident in Irelandfor a
tax year if he/she is present in Ireland: (1) for aperiod of at
least 183 days in that tax year; or (2)
for a period of at least 280 days in any two consecutivetax
years, provided that the individual is present inIreland for at
least 31 days in each period. In determiningdays present in
Ireland, an individual is deemed to bepresent if he/she is in
Ireland at any time during the day.This test takes effect from 1
January 2009 (previously indetermining days present in Ireland an
individual wasdeemed to be present if he/she was in Ireland at the
endof the day (midnight)).
A trust will generally be Irish resident where the trustee
isresident in Ireland or a majority of the trustees (if morethan
one) are resident in Ireland.
A company which has its central management andcontrol in Ireland
is resident in Ireland irrespective ofwhere it is incorporated. A
company which does nothave its central management and control in
Ireland butwhich is incorporated in Ireland is resident in
Irelandexcept where:
– the company or a related company carries on atrade in Ireland,
and either the company is ultimatelycontrolled by persons resident
in EU Member Statesor in countries with which Ireland has a
doubletaxation treaty, or the company or a relatedcompany are
quoted companies on a recognisedStock Exchange in the EU or in a
treaty countryunder a double taxation treaty between Ireland
andthat country. This exception does not apply where itwould result
in an Irish incorporated company that ismanaged and controlled in a
relevant territory (otherthan Ireland), but would not be resident
in thatrelevant territory as it is not incorporated there, notbeing
resident for tax purposes in any territory.
or
– the company is regarded as not resident in Irelandunder a
double taxation treaty between Ireland andanother country.
The Finance Act 2014 amended the above residencyrules for
companies incorporated on or after 1 January2015. These new
residency rules will ensure thatcompanies incorporated in Ireland
and also companiesnot so incorporated but that are managed and
controlledin Ireland, will be tax resident in Ireland except to
theextent that the company in question is, by virtue of adouble
taxation treaty between Ireland and anothercountry, regarded as
resident in a territory other thanIreland (and thus not resident in
Ireland). For companies
BNY Mellon Global Funds, plc – Definitions 11
-
incorporated before this date these new rules will notcome into
effect until 1 January 2021 (except in limitedcircumstances).
It should be noted that the determination of a
company’sresidence for tax purposes can be complex in certaincases
and potential investors are referred to the specificlegislative
provisions that are contained in Section 23A ofthe Taxes Act.
Q “Irish Stock Exchange”Irish Stock Exchange Limited
Q “Manager”BNY Mellon Global Management Limited appointed by
theCompany with the prior approval of the Central Bank as
themanager of the Company and of each Sub-Fund
Q “Management Agreement”an agreement dated 13 March 2001 between
the Companyand the Manager, as amended, supplemented or
otherwisemodified from time to time in accordance with
therequirements of the Central Bank
Q “Management Share”a management share in the capital of the
Company
Q “Member State”a member state of the European Economic Area
(“EEA”)
Q “Net Asset Value of the Company”the aggregate net asset value
of all the Sub-Funds
Q “Net Asset Value of the Sub-Fund”the net asset value of a
Sub-Fund calculated in accordancewith the provisions of the
Articles, as described under “TheCompany - Calculation of Net Asset
Value”
Q “Net Asset Value per Share”the net asset value per Share of a
Sub-Fund calculated inaccordance with the provisions of the
Articles, as describedunder “The Company - Calculation of Net Asset
Value”
Q “OECD”the Organisation for Economic Cooperation
andDevelopment, whose member states include all countrieslisted on
the OECD website: http://www.oecd.org
Q “Ordinarily Resident in Ireland”• in the case of an
individual, means an individual who is
ordinarily resident in Ireland for tax purposes;
• in the case of a trust, means a trust that is
ordinarilyresident in Ireland for tax purposes.
An individual will be regarded as ordinarily resident for
aparticular tax year if he/she has been Irish Resident forthe three
previous consecutive tax years (i.e. he/shebecomes ordinarily
resident with effect from thecommencement of the fourth tax year).
An individual willremain ordinarily resident in Ireland until
he/she has beennon-Irish Resident for three consecutive tax years.
Thus,an individual who is resident and ordinarily resident
inIreland in the tax year 1 January 2017 to 31 December2017 and
departs from Ireland in that tax year will remainordinarily
resident up to the end of the tax year 1January 2020 to 31 December
2020.
The concept of a trust’s ordinary residence is somewhatobscure
and linked to its tax residence.
Q “Paying Agency Agreement”one or more Paying Agency Agreements
made between theCompany and/or the Manager and a Paying Agent
Q “Paying Agent”one or more paying agents appointed by the
Company and/or the Manager in certain jurisdictions
Q “Prospectus”the prospectus of the Company and any supplements
andaddenda thereto issued in accordance with the requirementsof the
Central Bank UCITS Regulations 2015
Q “Recognised Clearing System”any clearing system listed in
Section 246A of the Taxes Act(including, but not limited to,
Euroclear, Clearstream BankingAG, Clearstream Banking SA and CREST)
or any othersystem for clearing shares which is designated for
thepurposes of Chapter 1A in Part 27 of the Taxes Act, by theIrish
Revenue Commissioners, as a recognised clearingsystem.
Q “Register”the register in which the names of the Shareholders
of theCompany are listed
Q “Relevant Declaration”the declaration relevant to the
Shareholder as set out inSchedule 2B of the Taxes Act
Q “Relevant Period”means a period of 8 years beginning with the
acquisition of aShare by a Shareholder and each subsequent period
of 8years beginning immediately after the preceding
RelevantPeriod
Q “Repurchase Price”the Net Asset Value per Share (subject to
any dilutionadjustment) attributable to a particular class or
Sub-Fund atthe date of the redemption
Q “Securities Act”the United States Securities Act of 1933, as
amended
Q “SFC”the Hong Kong Securities and Futures Commission
Q “Shareholder”a person who is registered as the holder of
Shares in theregister for the time being kept by or on behalf of
theCompany
Q “Shares” or “Share”participating shares of no par value in the
capital of theCompany which may be designated as different classes
ofshares in one or more Sub-Funds
Q “Specified US Person”means
12 BNY Mellon Global Funds, plc – Definitions
-
a) a US citizen or resident individual,
b) a partnership or corporation organized in the UnitedStates or
under the laws of the United States or anyState thereof
c) a trust if
i) a court within the United States would haveauthority under
applicable law to render orders orjudgments concerning
substantially all issuesregarding administration of the trust,
and
ii) one or more US persons have the authority tocontrol all
substantial decisions of the trust, or anestate of a decedent that
is a citizen or resident ofthe United States excluding
1) a corporation the stock of which is regularlytraded on one or
more established securitiesmarkets;
2) any corporation that is a member of the sameexpanded
affiliated group, as defined in section1471(e)(2) of the U.S.
Internal Revenue Code,as a corporation described in clause a);
3) the United States or any wholly owned agencyor
instrumentality thereof;
4) any State of the United States, any U.S.Territory, any
political subdivision of any of theforegoing, or any wholly owned
agency orinstrumentality of any one or more of theforegoing;
5) any organization exempt from taxation undersection 501(a) or
an individual retirement planas defined in section 7701(a)(37) of
the U.S.Internal Revenue Code;
6) any bank as defined in section 581 of the U.S.Internal
Revenue Code;
7) any real estate investment trust as defined insection 856 of
the U.S. Internal Revenue Code;
8) any regulated investment company as definedin section 851 of
the U.S. Internal RevenueCode or any entity registered with the
SecuritiesExchange Commission under the InvestmentCompany Act of
1940 (15 U.S.C. 80a-64);
9) any common trust fund as defined in section584(a) of the U.S.
Internal Revenue Code;
10) any trust that is exempt from tax under section664(c) of the
U.S. Internal Revenue Code orthat is described in section
4947(a)(1) of theU.S. Internal Revenue Code;
11) a dealer in securities, commodities, or derivativefinancial
instruments (including notional principalcontracts, futures,
forwards, and options) that isregistered as such under the laws of
the UnitedStates or any State;
or
12) a broker as defined in section 6045(c) of theU.S. Internal
Revenue Code. This definition shallbe interpreted in accordance
with the USInternal Revenue Code
Q “Sub-Investment Manager”any one or more sub-investment
managers or advisersappointed by an Investment Manager to manage
the assetsof a Sub-Fund
Q “Sub-Fund”a sub-fund of the Company established by the
Directors fromtime to time with the prior approval of the Central
Bank
Q “Subscription Price”the Net Asset Value per Share (subject to
any dilutionadjustment) attributable to a particular class or
Sub-Fund atthe date of the subscription
Q “Supplement” or “Supplements”a document supplemental to this
Prospectus which containsspecific information in relation to a
particular Sub-Fund
Q “Taxes Act”the Taxes Consolidation Act, 1997 (of Ireland) as
amended
Q “UCITS”an Undertaking for Collective Investment in
TransferableSecurities established pursuant to EC Council Directive
85/611/EEC of 20 December 1985, as amended, consolidatedor
substituted from time to time
Q “UCITS Directive”shall mean Directive 2009/65/EEC of the
EuropeanParliament and of the Council, as amended by
Directive2014/91/EU of 23rd July, 2014 and as may be
furtheramended, consolidated or substituted from time to time
Q “UCITS Regulations”the European Communities Undertakings for
CollectiveInvestment in Transferable Securities) Regulations, 2011
(S.I.No. 352 of 2011) as amended by the European
Communities(Undertakings for Collective Investment in
TransferableSecurities) (Amendment) Regulations, 2012 (S.I. No. 300
of2012) and as further amended by the European Union(Undertakings
for Collective Investment in TransferableSecurities) (Amendment)
Regulations, 2016 (S.I. No. 143 of2016), (as may be further
amended, consolidated andsubstituted from time to time) and any
regulations orGuidance issued by the Central Bank pursuant thereto
for thetime being in force
Q “U.S. Person”a person who is in either of the following two
categories:
a) a person included in the definition of “U.S. person”
underRule 902 of Regulation S under the Securities Act
or
b) a person excluded from the definition of a “Non-UnitedStates
person” as used in Commodity Futures TradingCommission (“CFTC”)
Rule 4.7. For the avoidance ofdoubt, a person is excluded from this
definition of U.S.Person only if he or it is outside both the
definitions of “U.S. person” in Rule 902 and the definition of a
“Non-United States person” under CFTC Rule 4.7. U.S. personunder
Rule 902 generally includes the following:
i) any natural person resident in the United States(including
U.S. residents temporarily residingabroad);
ii) any partnership or corporation organised orincorporated
under the laws of the United States;
iii) any estate of which any executor or administrator isa U.S.
person;
iv) any trust of which any trustee is a U.S. person;
BNY Mellon Global Funds, plc – Definitions 13
-
v) any agency or branch of a non-U.S. entity located inthe
United States;
vi) any non-discretionary account or similar account(other than
an estate or trust) held by a dealer orother fiduciary for the
benefit or account of a U.S.person;
vii) any discretionary account or similar account (otherthan an
estate or trust) held by a dealer or otherfiduciary organised,
incorporated or (if an individual)resident in the United
States;
and
viii) any partnership or corporation if:
1) organised or incorporated under the laws of anynon-U.S.
jurisdiction;
and
2) formed by a U.S. person principally for thepurpose of
investing in securities not registeredunder the Securities Act,
unless it is organisedor incorporated, and owned, by
accreditedinvestors (as defined in Rule 501(a) ofRegulation D under
the Securities Act) who arenot natural persons, estates or
trusts.
Notwithstanding the preceding paragraph, “U.S. person”under Rule
902 does not include:
i) any discretionary account or similar account (otherthan an
estate or trust) held for the benefit oraccount of a non-U.S.
person by a dealer or otherprofessional fiduciary organised,
incorporated, or (ifan individual) resident in the United
States;
ii) any estate of which any professional fiduciary actingas
executor or administrator is a U.S. person, if
1) an executor or administrator of the estate whois not a U.S.
person has sole or sharedinvestment discretion with respect to the
assetsof the estate,
and
2) the estate is governed by non-United Stateslaw;
iii) any trust of which any professional fiduciary actingas
trustee is a U.S. person, if a trustee who is not aU.S. person has
sole or shared investmentdiscretion with respect to the trust
assets, and nobeneficiary of the trust (and no settler if the trust
isrevocable) is a U.S. person;
iv) an employee benefit plan established andadministered in
accordance with the law of acountry other than the United States
and customarypractices and documentation of such country;
v) any agency or branch of a U.S. person locatedoutside the
United States if
1) the agency or branch operates for validbusiness reasons,
and
2) the agency or branch is engaged in thebusiness of insurance
or banking and is subjectto substantive insurance or banking
regulation,respectively, in the jurisdiction where located;
and
vi) certain international organisations as specified inRule
902(k) (2) (vi) of Regulation S under theSecurities Act.
CFTC Rule 4.7 currently provides in the relevant part thatthe
following persons are considered “Non-United Statespersons”:
c) a natural person who is not a resident of the
UnitedStates;
d) a partnership, corporation or other entity, other than
anentity organised principally for passive investment,organised
under the laws of a non-U.S. jurisdiction andwhich has its
principal place of business in a non-U.S.jurisdiction;
e) an estate or trust, the income of which is not subject
toUnited States income tax regardless of source;
f) an entity organised principally for passive investmentsuch as
a pool, investment company or other similarentity, provided that
units of participation in the entityheld by persons who do not
qualify as Non-UnitedStates persons or otherwise as qualified
eligible persons(as defined in CFTC Rule 4.7(a) (2) or (3))
represent in theaggregate less than ten per cent. of the
beneficialinterest in the entity, and that such entity was not
formedprincipally for the purpose of facilitating investment
bypersons who do not qualify as Non-United Statespersons in a pool
with respect to which the operator isexempt from certain
requirements of Part 4 of theCFTC’s regulations by virtue of its
participants being non-United States persons;
or
g) a pension plan for the employees, officers or principals ofan
entity organised and with its principal place ofbusiness outside
the United States
Q “United States”the United States of America (including the
states thereof andthe District of Columbia), its territories, its
possessions andother areas subject to its jurisdiction
Q “Valuation Day”such day or days as specified in the relevant
Supplement foreach Sub-Fund
Q “Valuation Point”such time on each Valuation Day as specified
in the relevantSupplement for each Sub-Fund
In this Prospectus, unless otherwise specified, all
referencesto:“trillion” are to one thousand billion;“billion” are
to one thousand million;“USD” or “dollars” or “US$” or “cents” are
to United Statesdollars or cents;“EUR” or “euros” or “€” are to the
euro;“GBP” or “sterling” or “Stg£” or “£” are to British
poundssterling;“JPY” or “yen” or “¥” are to Japanese yen;“AUD” or
“A$” are to Australian dollars;“SGD” or “S$” are to Singapore
dollars;“HKD” or “HK$” are to Hong Kong dollars;“SEK” or “KR” are
to Swedish Krona;“CHF” or “FR” are to Swiss Francs; and“CAD” or C$
are to Canadian dollars.
“CNH” or “renminbi” are to the offshore renminbi marketcurrency.
“Renminbi” is the official currency of the People’sRepublic of
China, used to denote the Chinese currencytraded in the onshore and
offshore markets. All references inthis Prospectus to CNH or
renminbi should be interpreted asreferences to the offshore
renminbi market currency (CNH).
14 BNY Mellon Global Funds, plc – Definitions
-
THE COMPANY
Establishment and DurationThe Company was incorporated on 27
November 2000 under thelaws of Ireland as an open-ended umbrella
type investmentcompany with variable capital and limited liability.
The Companywas authorised by the Central Bank on 14 March 2001
pursuantto the UCITS Regulations. The Company’s share capital is at
alltimes equal to the Net Asset Value of the Company. There
existssegregated liability between the Sub-Funds of the
Company.
Although the Company has an unlimited life, it may at any time,
bygiving not less than four nor more than twelve weeks’ notice
tothe Shareholders, expiring on a Valuation Day, repurchase at
theRepurchase Price prevailing on such Valuation Day all (but
notsome of) the Shares in each or any Sub-Fund then
outstanding.
StructureThe Company is an umbrella type collective investment
vehicleconsisting of multiple Sub-Funds.
Additional Sub-Funds may, with the prior approval of the
CentralBank, be created by the Directors. The name of each
Sub-Fund,the terms and conditions of its initial offer of Shares,
details of itsinvestment objectives, policies and restrictions and
of anyapplicable fees and expenses shall be set out in the
Supplementsto this Prospectus. This Prospectus may only be issued
with oneor more Supplements, each containing specific information
relatingto a particular Sub-Fund. This Prospectus and the
relevantSupplement should be read and construed as a single
document.Supplements may be added to, or removed from, this
Prospectusfrom time to time as Sub-Funds are approved by the
Central Bankor have such approval withdrawn, as the case may be.
Thefollowing are the current Sub-Funds of the Company:
BNY Mellon Asian Equity FundBNY Mellon Small Cap Euroland
FundBNY Mellon Global Bond FundBNY Mellon Global Emerging Markets
Equity Value Fund*BNY Mellon Global Equity FundBNY Mellon Global
High Yield Bond FundBNY Mellon Global Opportunities FundBNY Mellon
Pan European Equity Fund*BNY Mellon S&P 500® Index TrackerBNY
Mellon U.S. Dynamic Value FundBNY Mellon Euroland Bond FundBNY
Mellon Emerging Markets Debt FundBNY Mellon Emerging Markets Debt
Local Currency FundBNY Mellon Brazil Equity FundBNY Mellon
Long-Term Global Equity FundBNY Mellon Global Property Securities
Fund*BNY Mellon Emerging Markets Equity Fund*BNY Mellon Global Real
Return Fund (USD)BNY Mellon Global Real Return Fund (EUR)BNY Mellon
Global Opportunistic Bond FundBNY Mellon Global Equity Income
FundBNY Mellon Global Dynamic Bond FundBNY Mellon Absolute Return
Equity FundBNY Mellon Emerging Markets Local Currency Investment
GradeDebt Fund*BNY Mellon Emerging Markets Corporate Debt FundBNY
Mellon Absolute Return Bond FundBNY Mellon European Credit FundBNY
Mellon Global Real Return Fund (GBP)BNY Mellon Emerging Markets
Equity Core Fund*BNY Mellon Global Emerging Markets Fund
BNY Mellon Emerging Markets Debt Opportunistic FundBNY Mellon
Crossover Credit Fund*BNY Mellon Japan Small Cap Equity Focus
FundBNY Mellon Japan All Cap Equity FundBNY Mellon Asian Income
FundBNY Mellon US Opportunities FundBNY Mellon Absolute Insight
FundBNY Mellon Asian Bond Fund*BNY Mellon Dynamic Total Return
FundBNY Mellon Alpha Equity Select FundBNY Mellon Global Leaders
FundBNY Mellon Targeted Return Bond FundBNY Mellon Global Credit
FundBNY Mellon Asia Rising Stars FundBNY Mellon U.S. Equity Income
FundBNY Mellon Global Short-Dated High Yield Bond FundBNY Mellon
Japan REIT Alpha FundBNY Mellon U.S. Municipal Infrastructure Debt
FundBNY Mellon Dynamic U.S. Equity FundBNY Mellon Global
Unconstrained FundBNY Mellon Global Multi-Asset Income FundBNY
Mellon U.S. High Yield Beta FundBNY Mellon Emerging Markets Debt
Total Return Fund
* Please note that these Sub-Funds are closed to
subscriptionsand are pending revocation from the Central Bank.
Please see therelevant Supplements for further information.
The Directors may, whether on the establishment of a Sub-Fundor
from time to time create more than one class of Shares in
eachSub-Fund that may differ as to certain matters including:
a) subscription amounts,
b) fees and expenses,
c) designated currencies,
and/or
d) different distribution policies, as the Directors may
determinemay be applicable.
The classes of Share established in each Sub-Fund shall be
setout in the relevant Supplement to the Prospectus. Separate
poolsof assets will not be maintained for each class. The creation
offurther classes must be effected in accordance with
therequirements of the Central Bank.
The Directors may close some or all of the Share classes in
theSub-Fund to subscriptions from existing and/or new
Shareholdersif the assets attributable to the Sub-Fund are at a
level, abovewhich, as determined by the Directors, it is not in the
bestinterests of Shareholders to accept further subscriptions –
forinstance where the size of the Sub-Fund may constrain the
abilityof the Investment Manager to meet the investment
objective.
The Directors may subsequently re-open some or all of the
Shareclasses in the Sub-Fund to further subscriptions from
existingand/or new Shareholders at their discretion and the process
ofclosing and potentially, re-opening the Share classes may
berepeated thereafter as the Directors may determine from time
totime.
Shareholders may ascertain the closed or open status of theShare
classes and if those Share classes are open to existingand/or new
Shareholders by contacting the Administrator. Closingthe Share
classes to new subscriptions from existing and/or newShareholders
will not affect the redemption rights of Shareholders.
BNY Mellon Global Funds, plc – The Company 15
-
Certain classes of Shares are intended for certain types
ofinvestors (see details of the share classes in the table
below).
Subscriptions from other types of investors may be acceptedwhere
the Directors reasonably believe the investor can subscribean
amount in excess of the applicable Minimum Initial Investmentand
may be subject to minimum account maintenance or otherqualification
established from time to time by the Directors.
Initial subscriptions for many classes of Shares are subject to
aMinimum Initial Investment. Please see the relevant Supplementfor
any applicable Minimum Initial Investment. Such amounts maybe
waived from time to time by the Directors.
Description of for whom the ShareClasses are intended:
Share Classes
Financial intermediaries acting on behalf oftheir clients, who
do not charge their clientsdirectly for the investment advice
theyprovide. A distribution fee (commission) orrebate of the annual
management chargemay be paid by the Manager where agreedand
permitted under applicable law
A, H (hedged), R, R(hedged)
Financial intermediaries acting on behalf oftheir clients, who
charge their clients directlyfor the investment advice they
provide. Adistribution fee (commission) or rebate of theannual
management charge may be paid bythe Manager where agreed and
permittedunder applicable law
B, J (hedged)
Financial intermediaries acting on behalf oftheir client who
charge their clients directlyfor the investment advice they
provide. Adistribution fee (commission) or rebate of theannual
management charge may be paid bythe Manager where agreed and
permittedunder applicable law
C, I (hedged), S, T(hedged)
Any non-intermediated investors
or
Financial intermediaries who charge theirclients directly for
the portfolio managementor investment advice they provide and
whoeither do not accept or are prohibited fromreceiving and
retaining third-party payments(distribution fee (commission) or
rebate)under applicable law
D, D (hedged)
G, G (hedged)
Description of for whom the ShareClasses are intended:
Share Classes
Non-intermediated Institutional Investors
or
Financial intermediaries who charge theirclients directly for
the portfolio managementor investment advice they provide and
whoeither do not accept or are prohibited fromreceiving and
retaining third-party payments(distribution fee (commission) or
rebate)under applicable law
W, W (hedged), U, U(hedged)
Z, Z (hedged)
Share classes which may be offered toinvestors who at the time
of subscription areclients of the Manager or of an associate ofthe
Manager within The Bank of New YorkMellon Corporation Group.
Holdings in these share classes may besubject to minimum account
maintenanceestablished from time to time by theDirectors. In
particular, the Directors maydetermine that once the total Net
AssetValue of these share classes reaches orexceeds a particular
amount that theseshare classes be closed to furtherinvestment.
Notwithstanding the foregoing,these share classes may be made
availablefor subsequent subscriptions by existingShareholders in
the share class at the solediscretion of the Directors.
E, E (hedged), F, F(hedged)
Share classes which may be offered toinvestors who have agreed
specific terms ofbusiness with the Manager or with anassociate of
the Manager within The Bankof New York Mellon Corporation Group,
andin respect of which the Directors deem itappropriate for such
investor to invest in theshare class.
These Share classes are designed, amongother things, to
accommodate an alternativecharging structure under which the
investoris charged management fees directly by theManager or its
relevant associate.Accordingly, no annual management feesare
payable in respect of X Shares out ofthe net assets of the relevant
Sub-Fund
X, X (hedged)
Investors subscribing for Shares with an initial offer price of
greaterthan 1.00 currency unit will receive a lower number of
individualShares for the amount subscribed, and thus will be
entitled tofewer votes at shareholder meetings, than if they
invested in otherclasses. This will not, however, impact on the
performance of theinvestors’ investment.
Investment in any class of Shares shall, in all cases, be
subject tothe restrictions set out in the Prospectus under the
heading“Restrictions on Ownership, Compulsory Repurchase and
Transferof Shares”.
Any additional criteria/details specific to investing in classes
in anyparticular Sub-Fund will be set out in the relevant
Supplement.
The Directors have the right in their sole discretion to waive
anyshare class restriction at any time.
Subscriptions for the Shares of each Sub-Fund should be in
thedenominated currency of the relevant class.
Subscription,redemption or distribution money paid or received in
respect of aclass denominated in a currency other than the
denominatedcurrency of the class, will be converted by the
Administrator or adelegate of the Company into or out of the
denominated currencyof the class at an exchange rate deemed
appropriate by theAdministrator or a delegate of the Company and
suchsubscription, redemption or distribution money shall be deemed
tobe in the amounts so converted. The cost of the conversion willbe
borne by the relevant Shareholder.
16 BNY Mellon Global Funds, plc – The Company
-
The assets and liabilities of the Company shall be allocated
toeach Sub-Fund in the following manner:
a) for each Sub-Fund, the Company shall keep separate booksand
records in which all transactions relating to the relevantSub-Fund
shall be recorded and, in particular, the proceedsfrom the issue of
Shares in each Sub-Fund shall be applied inthe books of the Company
to that Sub-Fund, and the assetsand liabilities and income and
expenditure attributable theretoshall be applied to such Sub-Fund
subject to the provisionsbelow;
b) any asset derived from another asset of a Sub-Fund shall
beapplied in the books of the relevant Sub-Fund as the assetfrom
which it was derived and on each valuation of an asset,the increase
or diminution in value thereof shall be applied tothe relevant
Sub-Fund;
c) where the Company incurs a liability which relates to
anyasset of a particular Sub-Fund or to any action taken
inconnection with an asset of a particular Sub-Fund, suchliability
shall be allocated to the relevant Sub-Fund;
d) in the case where an asset or a liability of the
Companycannot be considered as being attributable to a
particularSub-Fund, the Directors shall have the discretion subject
tothe approval of the auditors (such approval not to beunreasonably
withheld or delayed) to determine the basisupon which such asset or
liability shall be allocated betweenthe Sub-Funds and the Directors
shall have power at anytime and from time to time subject to the
approval of theauditors (such approval not to be unreasonably
withheld ordelayed) to vary such basis provided that the approval
of theauditors shall not be required in any case where such assetor
liability is allocated to all the Sub-Funds pro rata to
theirrespective net asset values at the time when the allocation
ismade; provided that all liabilities shall (in the event of
awinding up of the Company or a repurchase of all of theShares of
the Sub-Fund), be binding only on the relevantSub-Fund to which
they are attributable.
Operation of Cash AccountsCash accounts designated in different
currencies have beenestablished at umbrella level into which
subscription moniesreceived from investors of all of the Sub-Funds
shall be lodgedand from which redemption monies payable to
Shareholders willbe paid. All subscriptions, redemptions or
dividends payable to orfrom the relevant Sub-Fund will be
channelled and managedthrough such umbrella cash accounts and no
such accounts shallbe operated at the level of each individual
Sub-Fund. However theCompany will ensure that all monies in any
such umbrella fundcash account are recorded in the books and
records of theCompany as assets of, and attributable to, the
relevant Sub-Fundin accordance with the requirements of the
Articles of theCompany.
Further information relating to such accounts is set out in
thesections below entitled
a) “Application for Shares – Operation of Cash Accounts”;
b) “Repurchase of Shares - “Operation of Cash Accounts”;
and
c) “Distribution Policy” respectively. In addition, your
attention isdrawn to the section of the Prospectus entitled “Risk
Factors”–“Operation of Umbrella Cash Accounts” below.
Investment Objectives and PoliciesThe assets of each Sub-Fund
will be invested separately inaccordance with the investment
objectives and policies of therelevant Sub-Fund which are set out
in the relevant Supplementsto this Prospectus.
The investment return to Shareholders in a particular Sub-Fund
isrelated to the Net Asset Value of a Sub-Fund which in turn
isprimarily determined by the performance of the portfolio
ofinvestments held by that Sub-Fund over the relevant period
oftime.
The Company and each Sub-Fund may hold ancillary liquid
assetsincluding cash deposits and money market instruments
atinvestment grade or above (rated by Standard & Poor’s,
Moody'sor an equivalent recognised rating agency), e.g.
certificates ofdeposit, commercial paper and listed fixed interest
securities(including government and non-government notes and bonds)
orat such other rating as the relevant Investment Manager
deemsequivalent.
Where the Shares of a particular Sub-Fund have been listed onthe
Irish Stock Exchange, the Directors will ensure that, in theabsence
of unforeseen circumstances, the relevant Sub-Fund willadhere to
the material investment objective and policies for thatSub-Fund for
at least three years following the admission of theShares to the
Official List and to trading on the Main SecuritiesMarket of the
Irish Stock Exchange.
The Company shall not make any change to the investmentobjective
or any material change to the investment policy, each asdisclosed
in the relevant Supplement, unless Shareholders of therelevant
Sub-Fund have, in advance, on the basis of a simplemajority of
votes cast at a general meeting or with the prior writtenapproval
of all Shareholders of the relevant Sub-Fund (inaccordance with the
Articles), approved the relevant change(s).
Not less than 21 clear days’ prior written notice (or such
otherperiod as the Securities and Futures Commission in Hong
Kong(“SFC”) may require) will be given to affected Shareholders of
sucha meeting if the Sub-Fund is registered with the SFC.
The Company shall provide all Shareholders of the relevant
Sub-Fund with reasonable notice of the change(s) in the event of
anychange to the investment objective or any material change to
theinvestment policy, each as disclosed in the relevant
Supplement.In the event of a change of the investment objectives,
policy,restrictions and/or powers of any Sub-Fund authorised by
theSFC which do not require Shareholder approval, not less than
onemonth’s prior written notice (or such other period as the SFC
mayrequire) will be given to affected Shareholders in respect of
suchchanges.
Investors should be aware that the performance of certain
Sub-Funds may be measured against a specified index or benchmarkand
in this regard Shareholders are directed towards the
relevantSupplement which will refer to any relevant
performancemeasurement criteria. The Company may at any time change
thatreference index where, for reasons outside its control, that
indexhas been replaced, or another index or benchmark mayreasonably
be considered by the Company to have become theappropriate standard
for the relevant exposure. Any change to theindex or benchmark will
be disclosed in the annual or half yearlyreport of the Company
subsequent to the change.
There can be no guarantee any Sub-Fund will achieve
itsinvestment objective.
Investment and Borrowing RestrictionsWithin each Sub-Fund’s
investment policies, the followingrestrictions shall apply. The
Directors may impose furtherinvestment restrictions in respect of
each Sub-Fund as set out inthe relevant Supplement hereto.
1. Permitted Investments
Investments of a UCITS are confined to:
1.1 Transferable securities and money market instrumentswhich
are either admitted to official listing on a stockexchange in a
Member State or non-Member State or
BNY Mellon Global Funds, plc – The Company 17
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which are dealt on a market which is regulated,
operatesregularly, is recognised and open to the public in aMember
State or non-Member State.
1.2 Recently issued transferable securities which will
beadmitted to official listing on a stock exchange or othermarket
(as described above) within a year.
1.3 Money market instruments, other than those dealt on
aneligible market.
1.4 Shares of UCITS.
1.5 Shares of AIFs.
1.6 Deposits with credit institutions.
1.7 Financial derivative instruments.
2. Investment Restrictions
2.1 A UCITS may invest no more than 10% of net assets
intransferable securities and money market instrumentsother than
those referred to in paragraph 1..
2.2 Recently Issued Transferable Securities:
Subject to paragraph (2) a responsible person shallnot invest
any more than 10% of assets of a UCITS insecurities of the type to
which Regulation 68(1) (d) ofthe UCITS Regulations apply.
Paragraph (1) does not apply to an investment by aresponsible
person in US Securities known as “Rule144 A securities” provided
that;
a) the relevant securities have been issued with anundertaking
to register the securities with the SECwithin 1 year of issue;
and
b) the securities are not illiquid securities i.e. they maybe
realised by the UCITS within 7 days at the price,or approximately
at the price, which they are valuedby the UCITS.
2.3 A UCITS may invest no more than 10% of net assets
intransferable securities or money market instrumentsissued by the
same body provided that the total value oftransferable securities
and money market instrumentsheld in the issuing bodies in each of
which it investsmore than 5% is less than 40%.
2.4 Subject to the prior approval of the Central Bank, thelimit
of 10% (in 2.3) is raised to 25% in the case ofbonds that are
issued by a credit institution which has itsregistered office in a
Member State and is subject by lawto special public supervision
designed to protect bond-holders. If a UCITS invests more than 5%
of its netassets in these bonds issued by one issuer, the
totalvalue of these investments may not exceed 80% of thenet asset
value of the UCITS.
2.5 The limit of 10% (in 2.3) is raised to 35% if
thetransferable securities or money market instruments areissued or
guaranteed by a Member State or its localauthorities or by a
non-Member State or publicinternational body of which one or more
Member Statesare members.
2.6 The transferable securities and money marketinstruments
referred to in 2.4 and 2.5 shall not be takeninto account for the
purpose of applying the limit of 40%referred to in 2.3.
2.7 Deposits with any single credit institution, other than
acredit institution specified in Regulation 7 of the CentralBank
Regulations 2015 held as ancillary liquidity shall notexceed:
a) 10% of the net asset value of the UCITS; or
b) 20% of the net asset value of the UCITS where thedeposit is
made with the Depositary
2.8 The risk exposure of a UCITS to a counterparty to anOTC
derivative may not exceed 5% of net assets.
This limit is raised to 10% in the case of creditinstitutions
authorised in the EEA or credit institutionsauthorised within a
signatory state (other than an EEAMember State) to the Basle
Capital ConvergenceAgreement of July 1988; or a credit
institutionauthorised in Jersey, Guernsey, Isle of Man, Australiaor
New Zealand.
2.9 Notwithstanding paragraphs 2.3, 2.7 and 2.8 above,
acombination of two or more of the following issued by, ormade or
undertaken with, the same body may notexceed 20% of net assets:
– investments in transferable securities or moneymarket
instruments;
– deposits, and/or
– risk exposures arising from OTC derivativestransactions.
2.10 The limits referred to in 2.3, 2.4, 2.5, 2.7, 2.8 and
2.9above may not be combined, so that exposure to asingle body
shall not exceed 35% of net assets.
2.11 Group companies are regarded as a single issuer for
thepurposes of 2.3, 2.4, 2.5, 2.7, 2.8 and 2.9. However, alimit of
20% of net assets may be applied to investmentin transferable
securities and money market instrumentswithin the same group.
2.12 A UCITS may invest up to 100% of net assets in
differenttransferable securities and money market instrumentsissued
or guaranteed by any Member State, its localauthorities, non-Member
States or public internationalbody of which one or more Member
States aremembers, drawn from the following list: OECD
countries,Government of the People’s Republic of China,Government
of Singapore, Government of Brazil(provided the issues are
investment grade), Governmentof India (provided the issues are
investment grade),European Investment Bank, European Bank
forReconstruction and Development, International
FinanceCorporation, International Monetary Fund, Euratom, TheAsian
Development Bank, Council of Europe, Eurofima,African Development
Bank, The International Bank forReconstruction and Development, The
World Bank, TheInter-American Development Bank, European
CentralBank, European Union, Federal National MortgageAssociation
(Fannie Mae), Federal Home Loan MortgageCorporation (Freddie Mac),
Government NationalMortgage Association (Ginnie Mae), Student
LoanMarketing Association (Sallie Mae), Federal Home LoanBank,
Federal Farm Credit Bank, Tennessee ValleyAuthority, Export-Import
Bank and Straight-A FundingLLC.
2.13 The UCITS must hold securities from at least 6
differentissues, with securities from any one issue not
exceeding30% of net assets.
3. Investment in Collective Investment Schemes (“CIS”)
3.1 A UCITS may not invest more than 20% of net assets inany one
CIS.
3.2 Investment in AIFs may not, in aggregate, exceed 30%of net
assets.
3.3 The CIS are prohibited from investing more than 10% ofnet
assets in other open-ended CIS.
18 BNY Mellon Global Funds, plc – The Company
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3.4 When a UCITS invests in the Shares of other CIS thatare
managed, directly or by delegation, by the UCITSmanagement company
or by any other company withwhich the UCITS management company is
linked bycommon management or control, or by a direct orindirect
holding of more than 10% of the share capital orof the votes, that
management company or othercompany shall not charge management,
subscription,conversion or redemption fees on account of the
UCITSinvestment in the Shares of such other CIS.
3.5 Where by virtue of investment in the shares of
anotherinvestment fund, the Manager, an Investment Manager oran
Investment Advisor receives a commission on behalfof the UCITS
(including a rebated commission), theManager shall ensure that the
relevant commission ispaid into the property of the UCITS.
3.6 Investment by a Sub-Fund in another Sub-Fund of theCompany
is subject to the following additional provisions:
– Investment must not be made in a Sub-Fund whichitself holds
shares in other Sub-Funds within theCompany;
and
– The investing Sub-Fund may not charge an annualmanagement fee
in respect of that portion of itsassets invested in other Sub-Funds
within theCompany (whether such fee is paid directly at
theinvesting fund level, indirectly at the receiving fundlevel or a
combination of both), such that there shallbe no double charging of
the annual managementfee to the investing Sub-Fund as a result
ofinvestments in the receiving Sub-Fund. Thisprovision is also
applicable to the annual feecharged by an Investment Manager where
such feeis paid directly out of the assets of the Sub-Fund.
4. Index Tracking UCITS
4.1 A UCITS may invest up to 20% of net assets in sharesand/or
debt securities issued by the same body wherethe investment policy
of the UCITS is to replicate anindex which satisfies the criteria
set out in the CentralBank UCITS Regulations 2015 and is recognised
by theCentral Bank
4.2 The limit in 4.1 may be raised to 35%, and applied to
asingle issuer, where this is justified by exceptional
marketconditions.
5. General Provisions
5.1 An investment company, or management companyacting in
connection with all of the CIS it manages, maynot acquire any
shares carrying voting rights whichwould enable it to exercise
significant influence over themanagement of an issuing body.
5.2 A UCITS may acquire no more than:
a) 10% of the non-voting shares of any single issuingbody;
b) 10% of the debt securities of any single issuingbody;
c) 25% of the Shares of any single investment fund;
d) 10% of the money market instruments of any singleissuing
body.
NOTE: The limits laid down in 5.2b), 5.2c) and 5.2d)above may be
disregarded at the t