bny mellon mobility innovation fund - finect

BNY Mellon Mobility Innovation Fund

Charging Ahead

For Professional Clients only . Any views and opinions are those of the investment manager, unless otherwise noted.

Managed by

June 2020

What is Mobility Innovation?

Mobility Innovation The disruptive, transformational shift in how we use, power, and control all means of mobility, profoundly impacting businesses, governments, and consumers by materially altering interactions

across the mobility landscape

1

Consumer Auto replacement cycle

Demographics

Growing Asian consumer

Environmental CO2 emission scandal

Emerging markets pollution

Clean grid infrastructure

Regulatory Urban congestion

Autonomous vehicle readiness

Road safety

Technology Cloud infrastructure

Edge computing

5G roll out

Catalysts for Mobility Innovation – Pre/Post Covid-19

2

Covid-19 Impact? – Mobility trends accelerating While the pandemic led to a pause in the movement of people, goods, services, and the transformation of mobility accelerated!

3

Connectivity is redefining many aspects of life

Factory Automation is expanding Digital Transformation is here Innovation beyond passenger cars

Urban mobility challenges

Sources: 1. Delphi Automotive PLC, September 2017. 2. United Nations, May 2018. 3. Navigant Research, Q2 2017 Report. 4. Fortune, March 2016. 5. World Health Organization, 2018 Report. 6. United States Environmental Protection Agency, 2016.

4

68% of the world population projected to live in urban areas by 20502 +40%

freight1

World population projected to reach 9.8bn in 20502

Transportation accounts for 28% of all green house gases6

1.2bn vehicles on world's roads now, 2.0bn by 20353

On average, cars are parked 95% of the time4

4X cost1

The number of annual road traffic deaths has reached 1.35 million5

5x emissions1 3x travel time1

!

Urban areas will be particularly impacted by mobility challenges

Uniquely positioned to address mobility's toughest challenges

Mobility benefits

Sources: 1. Delphi Automotive PLC, September 2017. 2. Forbes, September 2017. 3. Counterpoint Research, April 2018. 4. BloombergNEF, Outlook 2018. 5. Frost & Sullivan, https://ww2.frost.com/research/visionary-innovation/future-mobility/, accessed March 2019.

5

28% less vehicles1

EVs will make

up 65% of new light-duty

vehicle sales by 20502

44% fewer parking spaces will be needed1

66% lower

emissions1

Over 50 cities worldwide will have zero

emission taxis5

125 million connected cars with embedded connectivity to be shipped 2018-20223

87% fewer

accidents1

Electrified buses and cars will displace a combined 7.3 million barrels per day of transportation fuel in 20404

By 2040, 55% of all new car sales and 33% of the global fleet will be electric4

30% shorter travel

time1

The four key drivers of Mobility Innovation CASE

Sources: Top right: Automotive Glazing Academy, http://aga.uk.net/advanced‐driver‐assistance‐systems/adas/, accessed May 2018. Bottom left: McKinsey Center for Future Mobility as at September 2017. Bottom right: Bloomberg New Energy Finance as at 21 May 2018.

6

Connectivity Autonomous Vehicles

Sharing Electrification

EVs To Garner Half The Global Auto Market By 2040 New Ride Sharing, Subscription, and Distribution Models

Mill

ion

cars

per

yea

r

Cloud Storage

Software Platforms

Advanced Mapping Systems

High-resolution

Big Data Analytics

High Speed Data Towers

V2X Communication

Connected Road Infrastructure

Apps and Services

C.A.S.E. industry acronym is a roadmap… but it does not stand

still. It’s accelerating!

A highly active theme which will continue to evolve

Cyber… vehicles as digital platforms

Adaptive… it will know you!

Sharing DATA… “the new oil”

Electrification… beyond the car

Connectivity

Autonomy

Sharing

Electrification

Mobility Innovation never stands still – regardless of Covid-19

7

Cars and other forms of mobility are digital platforms.

Connectivity Cyber

OEMs are building their products to enable new services

An open and modular approach is the way to go…

..but a move to digital / cyber platforms expands the attack surface and opportunity for malware

SECURITY IS A NEW PLAY

8

Autonomy Adaptive

• Adapt to drivers

• Adapt to other cars

• Adapt to obstructions

• Adapt to pedestrians

Cars and other forms of mobility will understand us – not just know us!

• Smart Roads

• Connected Infrastructure

• Safety!

9

Sharing not just rides…DATA OEMS will offer new services to help consumers OPT-IN to share

their data, and benefit from other’s Slippery road

ahead!

Purchase 4WD activation?

Rideshare request

$$$

SLOW!!!

Accident ahead!

Lunch points ahead

Available parking

$$$

Emergency vehicle

approaching

Pull aside

10

Electrification of new forms of Mobility Electrification is going beyond the car

11

Investment team and process

Quantitative portfolio manager

Strategist

Portfolio manager

Portfolio manager

Lead portfolio manager


Source: Mellon as at March 2020. CFA® and Chartered Financial Analyst® are registered trademarks owned by CFA Institute.

Investment team

13

Research capabilities

Fundamental Research ESG Alternative Research Quantitative

Robert Zeuthen, CFA Senior Portfolio Manager

Frank Goguen, CFA Senior Research Analyst

Erik Swords Senior Research Analyst

Shawn Zhang, CFA Senior Research Analyst

George Saffaye Global Investment Strategist

Investment resources Mellon Global Equity Research team

Source: Mellon as at March 2020. Years shown indicate industry experience. Years of experience may include partial year periods. 1. Employee of affiliated entity. CFA® and Chartered Financial Analyst® are registered trademarks owned by CFA Institute. CMT® and Chartered Market Technician® are registered trademarks owned by Market Technicians Association.

14

Matthew Griffin, CFA Head of Global Equity Research 29 years

Javon Collins Research Associate 1 year

Matthew Jenkin Senior Research Analyst 20 years

Oluwaseun Ososami Research Associate 5 years

Karen Miki Behr Senior Research Analyst 21 years

Veronique Daphnis Research Associate 9 years

Thomas Karthaus, CFA Research Analyst 16 years

Rick Rosania, CFA Senior Research Analyst 25 years

Amanda Birdsey-Benson, PhD Senior Research Analyst 8 years

Jack Encarnacao Research Analyst 3 years

Katherine Kelly Research Analyst 5 years

Justin Sumner, CFA Senior Research Analyst 22 years

Brian Blongastainer, CFA, CMT Senior Research Analyst 16 years

Frank Goguen, CFA Senior Research Analyst 25 years

Cameron Kilduff Research Associate 1 year

Erik Swords Senior Research Analyst 20 years

Richard Bullock, CFA1

Senior Research Analyst 16 years

Anushree Gupta Research Analyst 3 years

Monty Kori Senior Research Analyst 18 years

Leigh Todd, CFA Senior Portfolio Manager 24 years

Brock Campbell, CFA Senior Research Analyst 15 years

Michael Holton Senior Research Analyst 25 years

Raphael Lewis Research Analyst 13 years

Alex Trombetta Research Associate 3 years

Adam Chen Senior Research Associate 4 years

Keith Howell Jr., CFA Senior Research Analyst 14 years

Kyle McDonough, CFA Research Associate 5 years

Robert Zeuthen, CFA Senior Portfolio Manager 30 years

Albert Chu, CFA Senior Research Analyst 20 years

David Intoppa Senior Research Analyst 20 years

Julianne McHugh Senior Portfolio Manager 28 years



Investment resources Mellon Small Mid Equity Research team

Source: Mellon as at March 2020. Years shown indicate industry experience. Years of experience may include partial year periods. CFA® and Chartered Financial Analyst® are registered trademarks owned by CFA Institute. CMT® and Chartered Market Technician® are registered trademarks owned by Market Technicians Association.

15



Patrick Kent, CFA, CMT Senior Portfolio Manager 22 years

William Eckel, CFA Research Analyst 9 years

Jonathan Piskorowski, CFA Senior Research Analyst 17 years

Amanda Birdsey-Benson, PhD Senior Research Analyst 8 years

Jack Encarnacao Research Analyst 3 years

Todd Wakefield, CFA Senior Portfolio Manager 28 years

James Boyd, CFA Senior Portfolio Manager 27 years

Caroline Higgins, CFA Research Analyst 28 years

Edward Walter, CFA Senior Portfolio Manager 31 years

Stephanie Brandaleone, CFA Senior Research Analyst 29 years

Andrew Leger Senior Portfolio Manager 22 years

Robert Zeuthen, CFA Senior Portfolio Manager 30 years

Nicholas Cohn Senior Research Analyst 13 years

Raphael Lewis Research Analyst 13 years

Investment resources Thematic equity research

Source: Mellon as at March 2020. CFA® and Chartered Financial Analyst® are registered trademarks owned by CFA Institute. CMT® and Chartered Market Technician® are registered trademarks owned by Market Technicians Association.

16

Build Connect Consume Renew Secure Heal Move Brock Campbell, CFA Senior Research Analyst

James Boyd, CFA Senior Portfolio Manager

Leigh Todd, CFA Senior Portfolio Manager

Andrew Leger Senior Portfolio Manager

Michael Holton Senior Research Analyst

Amanda Birdsey-Benson, PhD Senior Research Analyst

Robert Zeuthen, CFA Senior Portfolio Manager

Albert Chu, CFA Senior Research Analyst

Justin Sumner, CFA Senior Research Analyst

Todd Wakefield, CFA Senior Portfolio Manager

Robin Wehbé, CFA, CMT Senior Portfolio Manager

Keith Howell Jr., CFA Senior Research Analyst

Matthew Jenkin Senior Research Analyst

Frank Goguen, CFA Senior Research Analyst

Monty Kori Senior Research Analyst

Anushree Gupta Research Analyst

Karen Miki Behr Senior Research Analyst

David Intoppa Senior Research Analyst

Erik Swords Senior Research Analyst

Rick Rosania, CFA Senior Research Analyst

William Eckel, CFA Research Analyst

Brian Blongastainer, CFA, CMT Senior Research Analyst

Jonathan Piskorowski, CFA Senior Research Analyst

Edward Walter, CFA Senior Portfolio Manager

Caroline Higgins, CFA Research Analyst

Nicholas Cohn Senior Research Analyst

Alternative & future research Generalists Jack Encarnacao Research Analyst

Thomas Karthaus, CFA Research Analyst

Richard Bullock, CFA* Senior Research Analyst

Adam Chen Senior Research Associate

Veronique Daphnis Research Associate

Kyle McDonough, CFA Research Associate

Alex Trombetta Research Associate

Raphael Lewis Research Analyst

Katherine Kelly Research Analyst

Javon Collins Research Associate

Cameron Kilduff Research Associate

Olumaseun Ososami Research Associate

John Porter III CIO, Head of Equity

Matthew Griffin, CFA Head of Global Equity Research

BNY Mellon Mobility Innovation Fund Investment process

Source: Mellon Investment Managers are appointed by BNY Mellon Investment Management EMEA Limited (BNYMIM EMEA), BNY Mellon Fund Management (Luxembourg) S.A. (BNY MFML) or affiliated fund operating companies to undertake portfolio management activities in relation to contracts for products and services entered into by clients with BNYMIM EMEA, BNY MFML or the BNY Mellon funds.

17

Thematic research Candidate list

Security selection Portfolio construction Portfolio

management

• Global research analysts identify themes and trends

• Annual off sites

• White paper research

• Sub-theme identification

• Establish universe

• Measure materiality to the theme

• Identify theme leadership

• Fundamental analysis

• Establish price targets

• Fundamental review by analysts and lead portfolio manager

• Maximise portfolio alpha subject to risk constraints

• Qualitative review

• Risk management

• Weekly optimisation

• Implementation and trading

Industry breakdown (%)

Top 10 holdings


Company Country Industry Fund (%)

Splunk Inc. United States Software 6.4

ANSYS, Inc. United States Software 5.8

MediaTek Inc Taiwan Semiconductors & Semiconductor Equipment 4.0

Roper Technologies, Inc. United States Industrial Conglomerates 4.0

Alphabet Inc. Class A United States Interactive Media & Services 3.5

STMicroelectronics NV Switzerland Semiconductors & Semiconductor Equipment 3.4

Slack Technologies, Inc. Class A United States Software 3.4

Aptiv PLC United States Auto Components 3.2

Yandex NV Class A Russia Interactive Media & Services 3.2

Samsung SDI Co., Ltd South Korea Electronic Equipment Instruments & Components 3.0

Total 40.0

Source: Mellon, excludes cash.

Portfolio structure as at 31 May 2020

19

1.0

1.6

1.7

2.4

3.0

5.0

6.0

6.7

8.9

11.0

12.6

18.1

22.2

Machinery

Electric Utilities

Internet & Direct Marketing Retail

Communications Equipment

IT Services

Industrial Conglomerates

Automobiles

Interactive Media & Services

Electrical Equipment

Auto Components

Electronic Equipment Instruments &…

Software

Semiconductors & Semiconductor…

Portfolio characteristics

Region breakdown (%)

Market capitalisation breakdown (%)


Fund MSCI AC World Mid Cap Index

Price-to-earnings using FY1 estimates (including negative earnings, x) 31.2 22.6

Estimated 3-5 year EPS growth (%) 25.9 9.7

Return on equity (%) 5.2 13.7

Price-to-earnings (excluding negative earnings, x) 25.4 16.9

Source: Mellon, excludes cash.

Portfolio structure as at 31 May 2020

20

2.1

47.4

44.1

6.4

1.9

26.3

30.0

41.8

<US$2bn

US$2bn-US$10bn

US$10bn-US$25bn

>US$25bn

Fund MSCI AC World Mid Cap Index

North America

62.4

Asia Pacific 21.6

Europe 12.8

Russia 3.2

BNY Mellon Mobility Innovation Fund, USD W (Acc.) Performance as at 31 May 2020

Source: Lipper. Fund performance calculated as total return, based on net asset value, including charges, but excluding initial charge, income reinvested gross of tax, expressed in share class currency. The impact of the initial charge, which may be up to 5%, can be material on the performance of your investment. Performance figures including the initial charge are available upon request. Please note that sector returns are likely to vary, depending on the timing of data extraction from Lipper.

21

Why Mobility Innovation? • How we use, power and control all means of mobility is at the early stages of a vast transformational shift – from the growth in electric

and autonomous vehicles, through to ridesharing and the technology underpinning data connectivity. New businesses are being formed across the supply chain and supporting infrastructure to profit from these new opportunities.

Why now? • Early movers in the smart mobility space are likely to become the market leaders. • Investors have the opportunity to invest in these future growth areas at an early entry point and at a time when we believe the scale of

the transformation in the smart mobility landscape has yet to be reflected in stock prices. • Covid-19 pandemic has accelerated the digital transformation, further propelling innovations in Mobility

Why BNY Mellon Mobility Innovation Fund? • Team managing the Fund has tracked the automobile, component and software industries throughout their careers making the portfolio

managers ideally placed to understand disruption within the mobility landscape. • Supported by the firm’s broader research expertise across large, mid and small cap equities, investment styles, regions, investigative,

private markets, and geopolitical research. • Offers true differentiation to global equity indices and other thematic equity products.

BNY Mellon Mobility Innovation Fund Summary

22

Appendix

BNY Mellon Mobility Innovation Fund Product overview

Source: BNY Mellon Investment Management EMEA Limited

24

Asset class Equities

Region Global

Investment objective To achieve long-term capital growth by primarily gaining exposure to companies located worldwide that are focused on innovation in transportation and related technologies.

Benchmark MSCI AC World Mid Cap NR Index

Fund inception 1 August 2018

Fund manager Team approach

Typical number of holdings 40-60

Base currency USD

Available currencies AUD, CAD, CHF, EUR, GBP, HKD, SGD, USD

Legal structure UCITS

Fund structure ICVC (Dublin-domiciled)

Regulatory authority Central Bank of Ireland

Dealing deadline 12:00 hours Dublin, Ireland and US business day

Valuation point 22:00 hours Dublin, Ireland and US business day

BNY Mellon Mobility Innovation Fund Share classes

Please note, further share classes are available. Please refer to the prospectus for further information.

25

Share class Initial sales charge Minimum initial

investment Annual management

fee Redemption fee ISIN Code Bloomberg Code USD A (Acc.) Up to 5% $5,000 1.85% None IE00BZ199J22 BNMIAAU

Euro A (Acc.) Up to 5% €5,000 1.85% None IE00BZ199G90 BNYMIEA

USD B (Acc.) Up to 5% $10,000 1.40% None IE00BZ199S13 BNMIBAU

USD C (Acc.) Up to 5% $5,000,000 0.90% None IE00BZ199Z89 BNMIUSC

Euro C (Acc.) Up to 5% €5,000,000 0.90% None IE00BZ199X65 BNMIEUC

SGD C (Acc.) Up to 5% SGD 5,000,000 0.90% None IE00BZ19B185 N/A

Euro I (Acc.) (hedged) Up to 5% €5,000,000 0.90% None IE00BZ19B300 N/A

SGD I (Acc.) (hedged) Up to 5% SGD 5,000,000 0.90% None IE00BZ19CB51 N/A

USD G (Acc) Up to 5% $5,000 0.90% None IE00BZ19B417 N/A

Euro G (Acc.) Up to 5% €5,000 0.90% None IE00BZ19B631 N/A

USD W (Acc.) Up to 5% $15,000,000 0.70% None IE00BZ1HLV20 BNMIWAU

Euro W (Acc.) Up to 5% €15,000,000 0.70% None IE00BZ1HLX44 N/A

CHF W (Acc.) Up to 5% CHF 15,000,000 0.70% None IE00BGCSBL17 N/A

SGD W (Acc.) Up to 5% SGD 15,000,000 0.70% None IE00BGCSBN31 N/A

Sterling W (Acc.) Up to 5% £15,000,000 0.70% None IE00BZ7PDY70 BMMIGWA

Euro W (Acc.) (hedged) Up to 5% €15,000,000 0.70% None IE00BGCSBQ61 BNMWAHE

SGD W (Acc.) (hedged) Up to 5% SGD 15,000,000 0.70% None IE00BDZW5F18 N/A

Portfolio allocation by CASE category

BNY Mellon Mobility Innovation Fund CASE weightings as at 31 March 2020

Source: Mellon. Total weight is an allocation of the 31 March 2020 end portfolio weight split evenly between the stocks CASE theme as a percentage of the total portfolio, where applicable, excludes cash, ETFs and futures.

26

Top stocks by weight

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

Connectivity Autonomous Vehicles Sharing Electrification

V2x (vehicle-to-everything) enables vehicle communication With each other (V2V), to pedestrians (V2P), to roadway infrastructure (V2I) and to the network (V2N)

Source: Mellon

27

Implication: More data storage, greater speeds and processing power needed

e.g. Pedestrian in crosswalk

Vehicle-to-pedestrian (V2P)

e.g. emergency vehicle approaching or vehicle

approaching over centre divider

Vehicle-to-vehicle (V2V)

e.g. Traffic backup three miles ahead

Vehicle-to-network (V2N)

e.g. traffic light ahead turning red or three

parking spaces available on this street

Vehicle-to-infrastructure (V2I)

ADAS systems continue to dominate growth in automotive content

28

Today, consumers use their vehicles for every purpose. In the future, they will choose an optimal mobility solution for each specific purpose

29

Source: McKinsey Center for Future Mobility, September 2017.

Today: One vehicle for every trip purpose

2030: A solution for each different specific purpose

Business

Leisure

Vacation

Shopping

Commuting to work Business

Leisure

Vacation Shopping

Commuting to work

+ non-vehicle modes of mobility

Long-term EV sales by region

Electric vehicle sales and automaker targets through 2040

Source: Bloomberg New Energy Finance, May 2018. Please note, graphs include projected figures.

30

Automaker Target Year

VW Group 2-3 million EVs sold annually 2025

General Motors 1 million EVs sold annually 2026

Daimler 15-25% of sales to be EVs 2025

BMW 15-25% of sales to be EVs 2025

Volvo 50% of sales to be BEVs 2025

Porsche 50% of sales to be EVs 2023

Chang’an 100% of sales to be EVs 2025

BAIC 100% of sales to be EVs in China 2025

• A disciplined, concentrated global equity portfolio that seeks to achieve long-term capital growth through exposure to companies focused on the development, adoption and integration of the soon to be ubiquitous technologies associated with a new era of smart mobility

• Portfolio holdings selected through bottom-up stock selection within the benchmark subindustries and individual securities that the investment team has identified as being impacted by disruptive auto trends

• Pioneering approach leverages the fundamental and quantitative research capabilities of Mellon’s active equity teams: ‒ Managing active, fundamental equity strategies encompassing a broad array of geographies, capitalisations and styles since 1970 ‒ Active equity AUM of US$31.7bn1

‒ Including over US$5.6bn in thematic portfolios1

BNY Mellon Mobility Innovation Fund A thematic equity fund focused on disruption in transport and related industries

1. Source: Mellon as at 31 March, 2020. Where applicable, assets include discretionary and non-discretionary assets, the notional value of overlay strategies, and assets managed by investment personnel acting in their capacity as officers of affiliated entities.

31

Agenda • What is Mobility Innovation and why now?

• Investment team and approach

• BNY Mellon Mobility Innovation Fund

Mellon’s active equity capabilities Over 15 years of thematic research and thought leadership

Source: Mellon

32

Mellon’s active equity capabilities Evolution of thematic equity solutions

1. Includes client assets invested in the Hedged and Unhedged Global Infrastructure Dividend Focus Equity strategies. The hedged strategy has the same diversified equity investment strategy as the unhedged strategy but includes the use of currency forward contracts to hedge the currency to USD. Source: Mellon as at 31 December 2019. Where applicable, assets include discretionary and non-discretionary assets, the notional value of overlay strategies, and assets managed by investment personnel acting in their capacity as officers of affiliated entities. Post 2011, solutions were developed alongside clients to provide bespoke thematic portfolios.

33

Global Infrastructure Dividend Focus Equity

AUM: US$2.1bn1

US Manufacturing Renaissance

AUM: US$128.1m

US Housing Market Closed

Global Healthcare REIT

AUM: US$909.8m

Global FinTech Closed

Internet of Things

AUM: US$954.4m

US Infrastructure AUM: US$2.0m

Mobility Innovation Equity

AUM: US$1.7bn

Global Natural Resources

AUM:US$1.1bn

Gold & Mining

AUM: US$16.2m

Global Tech

AUM: US$908.8m

Prior to 2011 2011 2012 2013 2014 2015 2016 2017 2018 2019

Digital Assets

AUM: US$11.1m

First Decade Innovators

AUM: US$30.5m

ESG framework

Mellon has made the deliberate decision to imbed ESG analysis throughout its investment processes. The result is firm-wide, bottom-up integration supported by the firm’s senior management.

Mellon’s process relies on recognition and analysis to: • See what the market may not

• Identify materiality, risk and opportunities

• Collaborate across disciplines

• Review and debate across sectors

All Mellon’s ESG efforts are: • In support of its fiduciary duty to the firm’s clients and to their stated risk and return objectives

• Supported by the firm’s research analysts’ and portfolio managers’ expertise

Mellon integrates ESG considerations into the firm’s investment processes in three ways: research expertise, solutions and product strategies.


Source: Mellon

Mellon’s ESG framework

34

● Integrated

● Risk mitigating

● Opportunity seeking

RESEARCH

● Thematic

● Long-term stewardship

INVESTMENT

● Responsibility of ownership

● Opportunity to influence outcomes

PROXY VOTING

● Valuable dialogue

● Longstanding practice

ENGAGEMENT

● Client directed

● Articulation & implementation

CONSULTING

5G

Three Major Use Cases

5G: Making better use of the radio spectrum What's really exciting is all the new services that will be built that we can't foresee

35

Mission-critical Applications requiring high reliability

● Strong security

● Ultra-high reliability

● Ultra-low latency

● Extreme user mobility

Internet of things

● Ultra-high density

● Ultra-low complexity

● Ultra-low energy

● Deep coverage

Enhanced broadband

● Deep awareness

● Extreme data rates

● Extreme capacity

5G NR

5G: The new spectrum frontier 5G will operate on previously unused frequencies within the existing radio portion of the electromagnetic spectrum

Source: Federal Communications Commission (FCC); Qualcomm; Mellon

36

Electromagnetic spectrum

10 H

Z

100

HZ

1 kH

Z

10 k

HZ

100

kHZ

1 M

HZ

10 M

HZ

100

MH

Z

1 G

HZ

10 G

HZ

100

GH

Z

1 TH

Z

10 T

HZ

100

THZ

1015

HZ

1016

HZ

1017

HZ

1018

HZ

1019

HZ

1020

HZ

1021

HZ

1022

HZ

1023

HZ

1024

HZ

VLF LF

MF

HF

VH

F

UH

F

SH

F

EH

F

Infrared Ultraviolet X-Ray Gamma-Ray Cosmic-Ray Visible

Non-Ionizing Radiation Ionizing Radiation

Radio Spectrum Optical Spectrum

● ~11 GHz of new radio (NR) spectrum for flexible use wireless broadband

● New Upper Microwave Flexible Use service in the 28 GHz, 37 GHz, and 39 GHz bands

● Unlicensed band at 64-71 GHz

● Leveraging mmWaves (High-Band) which will require innovation in small cell, massive multiple-input, multiple-output (MIMO), beamforming, and duplex

Low-Band Mid-Band

High-Band

10 k

HZ

100

kHZ

1 M

HZ

10 M

HZ

100

MH

Z

1 G

HZ

10 G

HZ

100

GH

Z

3G

4G

5G

The SAE has formalised six levels of autonomous driving

Source: NHTSA “Automated Vehicles for Safety”, accessed May 2018.

37

0

No Automation

Zero autonomy,

the driver performs all

driving tasks.

5

Full Automation

The vehicle is

capable of performing all

driving functions under all

conditions. The driver may have

the option to control the

vehicle.

1

Driver Assistance

Vehicle is

controlled by the driver, but some

driving assist features may be included in the vehicle design.

2

Partial Automation

Vehicle has combined automated

functions, like acceleration and steering, but the

driver must remain engaged with the driving

task and monitor the environment

at all times.

3

Conditional Automation

Driver is a

necessity, but is not required to

monitor the environment.

The driver must be ready to take

control of the vehicle at all times with

notice.

4

High Automation

The vehicle is

capable of performing all

driving functions under certain

conditions. The driver may have

the option to control the

vehicle.

Full Automation Society of Automotive Engineers (SAE) Automation Levels

ADAS systems continue to evolve Multiple systems and system redundancy is essential for automated driving

Source: Mellon

38

It’s all about the lithium-ion battery

39

Li Li

Li Li

CHARGING

Positively charged lithium ions pass from cathode to anode to be stored until discharge

DISCHARGING

Energy is removed from the cell to be used outside the battery as lithium ions pass from the anode to cathode

ANODE

Negative electrode made of graphite that releases Lithium Ions while battery is discharging

SEPARATOR

Blocks flow of electrons

CATHODE

Positive electrode, containing cobalt, that releases Lithium Ions while battery is charging

ELECTROLYTE

Carries Lithium Ions between Anode & Cathode

e

e

The life cycle of a car

*Source: United States Department of Transportation - Federal Highway Administration as at 29 March 2018.

40

Cars Now

Car Design Can take over 3 years to

design modern cars

Manufacturing Labour

Intensive

Sale Companies have to

push to sell cars

Operation* 13.5k miles per year, Only 5% utilization

Maintenance Periodic

maintenance

Resale Used car dealer and

online sites

Scrapping Full junkyards hard

to recycle

3 Years plus 1 Day 2 Months 11 Years 1 Month 2 Months Total: 14.4 Years

Future of Cars

Car Design Modular design

and smaller refreshes

Manufacturing New Materials and

Techniques

Rent/Share Leased to

wholesalers

Operation Higher Utilization, Multiple

drivers, High Mileage

Maintenance OTA update,

active monitoring

Resale New market is rental

car companies

Scrapping Better recycling for

EV batteries

1 Year or less < 1 Day 1 Month 5 Years 0 1 Month Total: 6.1 Years

Hype – the misperception of reality Hype cycle for Electric Car Company A

Source: Mellon, Bloomberg

41

New technology triggers

innovation

Hype peaks

Excitement wains and the reality creates disillusionment

True, sustainable innovation drives long term growth

Funding is secured to take company private to preserve the vision and long term values and to protect from short term commercial choices

Announce new products that whilst innovative may not have long term commercial viability

Expe

ctat

ion

Company is unable to deliver on promised innovation in a sustainable long term model

Long term growth is found from innovation, investment and expertise

Company goes private with plans to revolutionize manufacturing and product

Company diversifies out of core business, using capital for acquisitions to add value to the “new business model”

Company has innovative product and first mover advantage

Company leadership builds confidence in delivering real innovation

Production difficulties hamper delivery

Excitement builds for new design and technology Company ramps up hype on what can be delivered

Time

Key investment risks

Performance

Investment objective and benchmark


Objective: To achieve long-term capital growth by primarily gaining exposure to companies located worldwide that are focused on innovation in transportation and related technologies. Benchmark: The Fund will measure its performance against the MSCI AC World Mid Cap NR Index (the "Benchmark"). The Fund is actively managed, which means the Investment Manager has absolute discretion to invest outside the Benchmark subject to the investment objective and policies disclosed in the Prospectus. While the Fund's holdings may include constituents of the Benchmark, the selection of investments and their weightings in the portfolio are not influenced by the Benchmark. The investment strategy does not restrict the extent to which the Investment Manager may deviate from the Benchmark.

Investment objective, annual performance and key risks

42

• Objective/Performance Risk: There is no guarantee that the Fund will achieve its objectives. • Currency Risk: This Fund invests in international markets which means it is exposed to changes in

currency rates which could affect the value of the Fund. • Derivatives Risk: Derivatives are highly sensitive to changes in the value of the asset from which their

value is derived. A small movement in the value of the underlying asset can cause a large movement in the value of the derivative. This can increase the sizes of losses and gains, causing the value of your investment to fluctuate. When using derivatives, the Fund can lose significantly more than the amount it has invested in derivatives.

• Emerging Markets Risk: Emerging Markets have additional risks due to less-developed market practices. • Market Capitalisation Risk: Investments in the securities of small to medium-sized companies (by market

capitalisation) may be riskier and less liquid (i.e. harder to sell) than large companies. This means that their share prices may have greater fluctuations.

• Counterparty Risk: The insolvency of any institutions providing services such as custody of assets or acting as a counterparty to derivatives or other contractual arrangements, may expose the Fund to financial loss.

• Mobility Innovation Companies Risk: The value of investments in Mobility Innovation Companies may be negatively impacted by changes in regulation and are dependent upon consumer and business acceptance of new technologies. The Fund's value may be more subject to market fluctuations than if it invested in a broader range of economic sectors.

• Share Class Currency Risk: Share classes may be denominated in a different currency from the base currency of the Fund. Changes in the exchange rate between the share class currency and the base currency may affect the value of your investment.

• Share Class Hedging Risk: The hedging strategy is used to reduce the impact of exchange rate movements between the share class currency and the base currency. It may not completely achieve this due to factors such as interest rate differentials.

Past performance is not a guide to future performance. The value of investments can fall. Investors may not get back the amount invested.

May-15 to May-16 to May-17 to May-18 to May-19 toMay-16 May-17 May-18 May-19 May-20

BNY Mellon Mobility Innovation Fund - - - - 22.78

Benchmark -4.87 15.86 12.50 -5.15 0.27

Calendar year returns (%) 2015 2016 2017 2018 2019

BNY Mellon Mobility Innovation Fund - - - - 28.88

Benchmark -1.61 7.23 24.47 -13.26 26.00

12-month returns (%)

Source: Lipper IM as at 31 May 2020. Fund performance for the USD W (Acc.) share class calculated as total return, based on net asset value, including charges, but excluding initial charge, income reinvested gross of tax, expressed in share class currency. The impact of the initial charge, which may be up to 5%, can be material on the performance of your investment. Performance figures including the initial charge are available upon request.

For Professional Clients only. This is a financial promotion and is not investment advice. For a full list of risks applicable to this fund, please refer to the Prospectus or other offering documents. Before subscribing, investors should read the most recent Prospectus and KIID or KFS for each fund in which they want to invest. Go to www.bnymellonim.com. The Prospectus and KIID are available in English and in an official language of the jurisdictions in which the Fund is registered for public sale. The Fund is a sub-fund of BNY Mellon Global Funds, plc, an open-ended investment company with variable capital (ICVC), with segregated liability between sub-funds. Incorporated with limited liability under the laws of Ireland and authorised by the Central Bank of Ireland as a UCITS Fund. The Management Company is BNY Mellon Fund Management (Luxembourg) S.A. (BNY MFML), regulated by the Commission de Surveillance du Secteur Financier (CSSF). Registered address: 2-4 Rue Eugène Ruppert L-2453 Luxembourg. Portfolio holdings are subject to change, for information only and are not investment recommendations. BNY Mellon is the corporate brand of The Bank of New York Mellon Corporation and its subsidiaries. AUM / OUM for the following firms may include assets managed by them as non-discretionary investment manager for, or by the individual firms’ officers as dual officers or employees of, The Bank of New York Mellon: BNY Mellon Investment Adviser, Inc. and its Dreyfus Cash Investment Strategies division, Newton Investment Management (North America) Limited (part of The Newton Group). AUM for Mellon Investments Corporation includes discretionary and non-discretionary assets, the notional value of overlay strategies, and assets managed by investment personnel acting in their capacity as officers of affiliated entities. Total AUM includes BNY Mellon Wealth Management and external data. AUM outlined for Newton represents the aggregate AUM of the following affiliated companies: Newton Investment Management Limited and Newton Investment Management (North America) Limited and may include assets managed by Newton’s officers as dual officers or employees of The Bank of New York Mellon. Insight investment's assets under management are represented by the value of cash securities and other economic exposure managed for clients. The Bank of New York Mellon Corporation holds 20% minority interest in Siguler Guff & Company LLC and certain related entities. BNY Mellon owns a majority of Mellon Investments Corporation and the remainder is owned by employees of the firm. Dreyfus Cash Investment Strategies is a division of BNY Mellon Investment Adviser, Inc. In Spain, BNY Mellon Global Funds is registered with the CNMV, Registration No. 267. Issued in Spain and Portugal by BNY Mellon Fund Management (Luxembourg) S.A. (BNY MFML), a public limited company (société anonyme) incorporated and existing under Luxembourg law under registration number B28166 and having its registered address at 2-4 Rue Eugène Ruppert L-2453 Luxembourg. BNY MFML is regulated by the Commission de Surveillance du Secteur Financier (CSSF).

Important information

43

MAR0001335. Exp. 18 Sep 2020

http://www.bnymellonim.com/





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