We are pleased to present this semiannual report for BNY Mellon Diversified International Fund, covering the six-month period from November 1, 2019 through April 30, 2020. For information about how the fund performed during the reporting period, as well as general market perspectives, we provide a Discussion of Fund Performance on the pages that follow.
Stock markets performed well over the last several months of 2019. Accommodative policies from the U.S. Federal Reserve (the “Fed”), paired with healthy U.S. consumer spending, helped support valuations. Despite periodic investor concern regarding trade relations with China and global growth rates, the rally continued through the end of the calendar year, supported in part by a December announcement that the first phase of a trade deal with China was in process. U.S. equity markets reached new highs during the final months of 2019. However, the euphoria was short-lived, as concerns over the spread of COVID-19 and widespread quarantine roiled markets during the first several months of 2020; stocks posted historic losses in March 2020 but regained some ground in April.
In fixed-income markets, interest rates were heavily influenced by changes in Fed policy and investor concern over COVID-19. As stocks rallied in November and December 2019, Treasury bond prices declined, and rates across much of the yield curve rose until early in 2020, when the threat posed by COVID-19 began to emerge. A flight to quality ensued, and rates fell significantly. March 2020 brought high volatility and risk-asset spread widened. The Fed cut rates twice in March, and the government launched a large stimulus package. In April 2020, bond prices began to recover some of their prior losses.
The near-term outlook for the U.S. will be challenging, as the country continues to face COVID-19. However, we believe that once the economic effects have been mitigated, the economy will rebound. As always, we will monitor relevant data for signs of change. We encourage you to discuss the risks and opportunities in today’s investment environment with your financial advisor.
Thank you for your continued confidence and support.
DISCUSSION OF FUND PERFORMANCE(Unaudited)
For the period from November 1, 2019 through April 30, 2020, as provided by Jeffrey M. Mortimer, CFA and Caroline Lee of BNY Mellon Wealth Management, Portfolio Managers
Market and Fund Performance Overview
For the six-month period ended April 30, 2020, BNY Mellon Diversified International Fund’s Class A shares produced a total return of -11.36%, Class C shares returned -11.71%, Class I shares returned -11.27%, and Class Y shares returned -11.25%.1 In comparison, the fund’s benchmark, the MSCI EAFE Index (the “Index”), produced a total return of -14.21% for the same period.2
Global stocks declined over the reporting period, due to the COVID-19 virus and the efforts to stem its spread. The fund outperformed the Index.
The Fund’s Investment Approach
The fund seeks long-term capital appreciation. To pursue its goal, the fund normally allocates its assets among other mutual funds advised by BNY Mellon Investment Adviser, Inc. or its affiliates, referred to as underlying funds, which invest primarily in stocks issued by foreign companies. The fund is designed to provide diversification within the international asset class by investing the majority of its assets in the underlying funds. The underlying funds are selected by the fund’s portfolio managers, based on their investment objectives and management policies, portfolio holdings, risk/reward profiles, historical performance and other factors, including the correlation and covariance among the underlying funds. The fund’s portfolio managers determine the underlying funds. As of April 30, 2020, the fund’s market value was allocated as follows:
BNY Mellon International Core Equity Fund 35.42%
BNY Mellon International Stock Fund 32.02%
BNY Mellon International Equity Fund 20.47%
BNY Mellon International Small Cap Fund 6.14%
BNY Mellon Emerging Markets Securities Fund 4.26%
Stocks Decline Due to COVID-19 Shutdowns
After surging early in 2019, U.S. markets remained steady, though investors grew concerned about trade tensions and the pace of global economic growth. As trade tensions and other geopolitical concerns appeared to be weighing on economic growth, the Federal Reserve (the “Fed”) reduced the federal funds rate twice, bringing the target rate to 1.50-1.75%. Other major central banks also took actions to support their economies.
Stocks rallied in response, and as investors became optimistic about a U.S.-China trade agreement. Talks culminated in the announcement of a “Phase One” deal, reducing tensions between the world’s two largest economies. Stocks also benefited from the approval of the new U.S.-Mexico-Canada Trade Agreement by the U.S. House of Representatives, potentially reducing trade uncertainty with America’s neighbors.
However, in 2020, markets experienced a correction, amid growing concerns about COVID-19 in China, erasing the gain that occurred late in 2019 and early in 2020. In response, the Fed reduced the federal funds rate by 50 basis points early in March 2020, bringing the target rate down to 1.00–1.25%. The Fed made another cut in mid-March 2020, bringing the federal funds rate target to 0.00-0.25%.
In addition, the Fed and other central banks initiated various programs to ease liquidity concerns in certain markets, and government authorities introduced programs to keep small businesses afloat and provide relief to employees who had lost their jobs as a result of government-mandated business
3
DISCUSSION OF FUND PERFORMANCE(Unaudited) (continued)
shutdowns. At the end of the reporting period, markets began to rebound, as these programs took effect, and investors began to anticipate the end of government shutdowns designed to slow the spread of the virus.
Underlying Manager Performance Drove Fund Results
The fund’s outperformance versus the benchmark came largely as a result of favorable results from the BNY Mellon International Stock Fund, which outperformed its benchmark by more than 1,000 basis points. The BNY Mellon International Core Equity Fund also contributed positively to performance, as it beat its benchmark by more than 240 basis points. Allocation decisions to the underlying funds also was beneficial to performance.
On a less positive note, the fund’s performance was hindered primarily by the underperformance of two underlying funds. The BNY Mellon International Small Cap lagged its benchmark by more than 700 basis points, and the BNY Mellon International Core Equity Fund lagged by 70 basis points. Although the underperformance was not large, the large allocation to this fund resulted in a significant drag on performance. The BNY Mellon Emerging Markets Securities Fund also lagged its benchmark, but the allocation to this asset class in the Index is relatively small, and the allocation to it in the fund was underweighted, which helped offset the negative impact.
The fund made no changes to its allocations among the underlying funds during the reporting period.
Maintaining a Well-Diversified Investment Posture
It is our opinion that the current economic downturn will eventually pass. The fund continues to be invested in line with BNY Mellon Wealth Management’s best thinking, and we believe it is well-positioned to weather the current environment. We will continue to take advantage of market volatility to add quality investments to the portfolio at reduced valuations. The fund offers a diversified portfolio of foreign equity investments that provide broad exposure to multiple investment managers, investment approaches, capitalizations and regions.
May 15, 2020
1 Total return includes reinvestment of dividends and any capital gains paid and does not take into consideration the maximum initial sales charge in the case of Class A shares, or the applicable contingent deferred sales charge imposed on redemptions in the case of Class C shares. Share price and investment return fluctuate such that upon redemption, fund shares may be worth more or less than their original cost. Return figures provided reflect the absorption of certain fund expenses pursuant to an agreement by BNY Mellon Investment Adviser, Inc. through February 28, 2021, at which time it may be extended, terminated or modified. Had these expenses not been absorbed, the fund’s returns would have been lower. Past performance is no guarantee of future results.
2 Source: Lipper Inc. — Reflects reinvestment of net dividends and, where applicable, capital gain distributions. The MSCI EAFE Index (Europe, Australasia, Far East) is a free float-adjusted, market capitalization-weighted index that is designed to measure the equity market performance of developed markets, excluding the U.S. and Canada. Investors cannot invest directly in any index.
Equities are subject generally to market, market sector, market liquidity, issuer and investment style risks, among other factors, to varying degrees, all of which are more fully described in the prospectus of the fund and that of each underlying fund.
Small and midsized companies carry additional risks because their earnings and revenues tend to be less predictable, and their share prices more volatile, than those of larger, more established companies.
The shares of smaller companies tend to trade less frequently than those of larger, more established companies.
The ability of the fund to achieve its investment goal depends, in part, on the ability of the portfolio managers to allocate effectively the fund’s assets among the underlying funds. There can be no assurance that the actual allocations will be effective in achieving the fund’s investment goal.
Each underlying fund’s performance will be influenced by political, social and economic factors affecting investments in foreign companies. Special risks associated with such companies include exposure to currency fluctuations, less liquidity, less developed or less efficient trading markets, lack of comprehensive company information, political instability and differing auditing and legal standards. These risks are higher in emerging- market countries.
Recent market risks include pandemic risks related to COVID-19. The effects of COVID-19 have contributed to increased volatility in global markets and will likely affect certain countries, companies, industries and market sectors more dramatically than others. To the extent the fund may overweight its investments in certain countries, companies, industries or market sectors, such positions will increase the fund’s exposure to risk of loss from adverse developments affecting those countries, companies, industries or sectors.
4
UNDERSTANDING YOUR FUND’S EXPENSES(Unaudited)
As a mutual fund investor, you pay ongoing expenses, such as management fees and other expenses. Using the information below, you can estimate how these expenses affect your investment and compare them with the expenses of other funds. You also may pay one-time transaction expenses, including sales charges (loads) and redemption fees, which are not shown in this section and would have resulted in higher total expenses. For more information, see your fund’s prospectus or talk to your financial adviser.
Review your fund’s expenses
The table below shows the expenses you would have paid on a $1,000 investment in BNY Mellon Diversified International Fund from November 1, 2019 to April 30, 2020. It also shows how much a $1,000 investment would be worth at the close of the period, assuming actual returns and expenses.
| | | | | | | |
Expenses and Value of a $1,000 Investment | |
Assume actual returns for the six months ended April 30, 2020 | |
| | | | | | |
| | Class A | Class C | Class I | Class Y | |
Expense paid per $1,000† | $1.88 | $5.38 | $.42 | $.19 | |
Ending value (after expenses) | $886.40 | $882.90 | $887.30 | $887.50 | |
COMPARING YOUR FUND’S EXPENSES
WITH THOSE OF OTHER FUNDS(Unaudited)
Using the SEC’s method to compare expenses
The Securities and Exchange Commission (“SEC”) has established guidelines to help investors assess fund expenses. Per these guidelines, the table below shows your fund’s expenses based on a $1,000 investment, assuming a hypothetical 5% annualized return. You can use this information to compare the ongoing expenses (but not transaction expenses or total cost) of investing in the fund with those of other funds. All mutual fund shareholder reports will provide this information to help you make this comparison. Please note that you cannot use this information to estimate your actual ending account balance and expenses paid during the period.
| | | | | | | |
Expenses and Value of a $1,000 Investment | |
Assuming a hypothetical 5% annualized return for the six months ended April 30, 2020 | |
| | | | | | |
| | Class A | Class C | Class I | Class Y | |
Expense paid per $1,000† | $2.01 | $5.77 | $.45 | $.20 | |
Ending value (after expenses) | $1,022.87 | $1,019.14 | $1,024.42 | $1,024.66 | |
† Expenses are equal to the fund’s annualized expense ratio of .40% for Class A, 1.15% for Class C, .09% for Class I and .04% for Class Y, multiplied by the average account value over the period, multiplied by 182/366 (to reflect the one-half year period). |
5
STATEMENT OF INVESTMENTS
April 30, 2020 (Unaudited)
| | | | | | | | |
| |
Description | | | | Shares | | Value ($) | |
Investment Companies - 98.6% | | | | | |
Foreign Equity - 98.6% | | | | | |
BNY Mellon Emerging Markets Securities Fund, Cl. Y | | | | 3,081,518 | a | 26,840,025 | |
BNY Mellon International Core Equity Fund, Cl. Y | | | | 6,881,233 | a | 223,089,558 | |
BNY Mellon International Equity Fund, Cl. Y | | | | 7,239,784 | a | 128,940,559 | |
BNY Mellon International Small Cap Fund, Cl. Y | | | | 3,629,693 | a | 38,692,531 | |
BNY Mellon International Stock Fund, Cl. Y | | | | 10,476,534 | a | 201,673,270 | |
Total Investments(cost $498,602,874) | | 98.6% | | 619,235,943 | |
Cash and Receivables (Net) | | 1.4% | | 8,937,883 | |
Net Assets | | 100.0% | | 628,173,826 | |
a Investment in affiliated issuer. The investment objective of this investment company is publicly available and can be found within the investment company’s prospectus.
| | |
Portfolio Summary (Unaudited)† | Value (%) |
Investment Companies | 98.6 |
| | 98.6 |
† Based on net assets.
See notes to financial statements.
6
STATEMENT OF INVESTMENTS IN AFFILIATED ISSUERS(Unaudited)
| | | | | |
Investment Companies | Value
10/31/19 ($) | Purchases ($)† | Sales ($) | Net Realized
Gain (Loss) ($) |
BNY Mellon Emerging Markets
Securities Fund, Cl. Y | 39,970,216 | 815,679 | (7,990,521) | (1,696,906) |
BNY Mellon International Core
Equity Fund, CI. Y | 335,395,150 | 10,989,837 | (62,326,063) | (6,322,296) |
BNY Mellon International Equity
Fund, CI. Y | 193,948,127 | 6,251,229 | (41,550,711) | (3,001,328) |
BNY Mellon International Small Cap
Fund, CI. Y | 63,866,796 | 2,563,929 | (11,186,729) | (2,098,906) |
BNY Mellon International Stock
Fund, CI. Y | 247,893,284 | 7,459,881 | (36,756,396) | 541,046 |
Total | 881,073,573 | 28,080,555 | (159,810,420) | (12,578,390) |
| | | | | |
Investment Companies | Net Change in
Unrealized
Appreciation
(Depreciation) ($) | Value
4/30/20 ($) | Net
Assets (%) | Dividends/
Distributions ($) |
BNY Mellon Emerging Markets
Securities Fund, Cl. Y | (4,258,443) | 26,840,025 | 4.3 | 593,614 |
BNY Mellon International Core
Equity Fund, CI. Y | (54,647,070) | 223,089,558 | 35.9 | 9,257,730 |
BNY Mellon International Equity
Fund, CI. Y | (26,706,758) | 128,940,559 | 20.7 | 5,096,489 |
BNY Mellon International Small Cap
Fund, CI. Y | (14,452,559) | 38,692,531 | 6.2 | 2,253,038 |
BNY Mellon International Stock
Fund, CI. Y | (17,464,545) | 201,673,270 | 32.5 | 6,438,382 |
Total | (117,529,376) | 619,235,943 | 99.6 | 23,639,253 |
† Includes reinvested dividends/distributions.
See notes to financial statements.
7
STATEMENT OF ASSETS AND LIABILITIES
April 30, 2020 (Unaudited)
| | | | | | | |
| | | | | | |
| | | Cost | | Value | |
Assets ($): | | | | |
Investments in affiliated issuers—See
Statement of Investments | 498,602,874 | | 619,235,943 | |
Cash | | | | | 10,356,480 | |
Receivable for shares of Common Stock subscribed | | 446,414 | |
Due from BNY Mellon Investment Adviser, Inc. and affiliates—Note 3(c) | | 5,384 | |
Prepaid expenses | | | | | 40,680 | |
| | | | | 630,084,901 | |
Liabilities ($): | | | | |
Payable for shares of Common Stock redeemed | | 1,830,103 | |
Directors’ fees and expenses payable | | 14,333 | |
Interest payable—Note 2 | | 186 | |
Other accrued expenses | | | | | 66,453 | |
| | | | | 1,911,075 | |
Net Assets ($) | | | 628,173,826 | |
Composition of Net Assets ($): | | | | |
Paid-in capital | | | | | 539,858,578 | |
Total distributable earnings (loss) | | | | | 88,315,248 | |
Net Assets ($) | | | 628,173,826 | |
| | | | | | |
Net Asset Value Per Share | Class A | Class C | Class I | Class Y | |
Net Assets ($) | 4,928,505 | 182,163 | 27,230,487 | 595,832,671 | |
Shares Outstanding | 430,947 | 15,887 | 2,379,938 | 52,139,702 | |
Net Asset Value Per Share ($) | 11.44 | 11.47 | 11.44 | 11.43 | |
| | | | | |
See notes to financial statements. | | | | | |
8
STATEMENT OF OPERATIONS
Six Months Ended April 30, 2020 (Unaudited)
| | | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
Investment Income ($): | | | | |
Income: | | | | |
Interest | | | 50,083 | |
Cash dividends from affiliated issuers | | | 19,791,942 | |
Total Income | | | 19,842,025 | |
Expenses: | | | | |
Shareholder servicing costs—Note 3(c) | | | 116,476 | |
Professional fees | | | 48,428 | |
Registration fees | | | 35,356 | |
Directors’ fees and expenses—Note 3(d) | | | 32,762 | |
Loan commitment fees—Note 2 | | | 9,770 | |
Prospectus and shareholders’ reports | | | 6,140 | |
Chief Compliance Officer fees—Note 3(c) | | | 5,366 | |
Distribution fees—Note 3(b) | | | 743 | |
Custodian fees—Note 3(c) | | | 447 | |
Interest expense—Note 2 | | | 186 | |
Miscellaneous | | | 12,633 | |
Total Expenses | | | 268,307 | |
Less—reduction in expenses due to undertaking—Note 3(a) | | | (97,149) | |
Net Expenses | | | 171,158 | |
Investment Income—Net | | | 19,670,867 | |
Realized and Unrealized Gain (Loss) on Investments—Note 4 ($): | | |
Net realized gain (loss) on investments: | | |
Affiliated issuers | | | | (12,578,390) | |
Capital gain distributions from affiliated issuers | 3,847,311 | |
Net Realized Gain (Loss) | | | (8,731,079) | |
Net change in unrealized appreciation (depreciation) on investments: | | |
Affiliated issuers | | | | (117,529,376) | |
Net Realized and Unrealized Gain (Loss) on Investments | | | (126,260,455) | |
Net (Decrease) in Net Assets Resulting from Operations | | (106,589,588) | |
| | | | | | |
See notes to financial statements. | | | | | |
9
STATEMENT OF CHANGES IN NET ASSETS
| | | | | | | | | | |
| | | | | | | | | |
| | | | Six Months Ended
April 30, 2020 (Unaudited) | | Year Ended
October 31, 2019 | |
Operations ($): | | | | | | | | |
Investment income—net | | | 19,670,867 | | | | 14,319,964 | |
Net realized gain (loss) on investments | | (8,731,079) | | | | 4,605,202 | |
Net change in unrealized appreciation
(depreciation) on investments | | (117,529,376) | | | | 69,011,405 | |
Net Increase (Decrease) in Net Assets
Resulting from Operations | (106,589,588) | | | | 87,936,571 | |
Distributions ($): | |
Distributions to shareholders: | | | | | | | | |
Class A | | | (109,355) | | | | (90,233) | |
Class C | | | (1,457) | | | | (1,950) | |
Class I | | | (813,275) | | | | (605,355) | |
Class Y | | | (18,815,805) | | | | (14,753,622) | |
Total Distributions | | | (19,739,892) | | | | (15,451,160) | |
Capital Stock Transactions ($): | |
Net proceeds from shares sold: | | | | | | | | |
Class A | | | 1,126,669 | | | | 1,671,839 | |
Class I | | | 9,241,222 | | | | 15,352,043 | |
Class Y | | | 35,213,851 | | | | 112,094,721 | |
Distributions reinvested: | | | | | | | | |
Class A | | | 101,481 | | | | 84,422 | |
Class C | | | 1,385 | | | | 1,901 | |
Class I | | | 662,390 | | | | 479,929 | |
Class Y | | | 2,610,096 | | | | 2,046,186 | |
Cost of shares redeemed: | | | | | | | | |
Class A | | | (1,441,186) | | | | (2,675,288) | |
Class C | | | (220) | | | | (233,715) | |
Class I | | | (12,924,976) | | | | (14,691,172) | |
Class Y | | | (171,006,469) | | | | (128,319,771) | |
Increase (Decrease) in Net Assets
from Capital Stock Transactions | (136,415,757) | | | | (14,188,905) | |
Total Increase (Decrease) in Net Assets | (262,745,237) | | | | 58,296,506 | |
Net Assets ($): | |
Beginning of Period | | | 890,919,063 | | | | 832,622,557 | |
End of Period | | | 628,173,826 | | | | 890,919,063 | |
10
| | | | | | | | | | |
| | | | | | | | | |
| | | | Six Months Ended
April 30, 2020 (Unaudited) | | Year Ended
October 31, 2019 | |
Capital Share Transactions (Shares): | |
Class Aa | | | | | | | | |
Shares sold | | | 88,782 | | | | 135,839 | |
Shares issued for distributions reinvested | | | 7,495 | | | | 7,498 | |
Shares redeemed | | | (113,381) | | | | (216,617) | |
Net Increase (Decrease) in Shares Outstanding | (17,104) | | | | (73,280) | |
Class C | | | | | | | | |
Shares issued for distributions reinvested | | | 102 | | | | 168 | |
Shares redeemed | | | (16) | | | | (18,894) | |
Net Increase (Decrease) in Shares Outstanding | 86 | | | | (18,726) | |
Class Ia | | | | | | | | |
Shares sold | | | 769,160 | | | | 1,250,445 | |
Shares issued for distributions reinvested | | | 48,957 | | | | 42,698 | |
Shares redeemed | | | (1,147,333) | | | | (1,206,008) | |
Net Increase (Decrease) in Shares Outstanding | (329,216) | | | | 87,135 | |
Class Ya | | | | | | | | |
Shares sold | | | 2,962,798 | | | | 9,333,860 | |
Shares issued for distributions reinvested | | | 193,198 | | | | 182,207 | |
Shares redeemed | | | (15,554,697) | | | | (10,564,565) | |
Net Increase (Decrease) in Shares Outstanding | (12,398,701) | | | | (1,048,498) | |
| | | | | | | | | |
a During the period ended April 30, 2020, 478,666 Class Y shares representing $5,798,407 were exchanged for 478,065 Class I shares and during the period ended October 31, 2019, 1,111 Class A shares representing $14,086 were exchanged for 1,111 Class I shares and 770,497 Class Y shares representing $9,561,615 were exchanged for 769,688 Class I shares. | |
See notes to financial statements. | | | | | | | | |
11
FINANCIAL HIGHLIGHTS
The following tables describe the performance for each share class for the fiscal periods indicated. All information (except portfolio turnover rate) reflects financial results for a single fund share. Total return shows how much your investment in the fund would have increased (or decreased) during each period, assuming you had reinvested all dividends and distributions. These figures have been derived from the fund’s financial statements.
| | | | | | | |
Six Months Ended | |
April 30, 2020 | Year Ended October 31, |
Class A Shares | (Unaudited) | 2019 | 2018 | 2017 | 2016 | 2015 |
Per Share Data ($): | | | | | | |
Net asset value, beginning of period | 13.14 | 12.09 | 13.25 | 10.91 | 11.23 | 11.57 |
Investment Operations: | | | | | | |
Investment income—neta | .28 | .17 | .14 | .20 | .09 | .19 |
Net realized and unrealized
gain (loss) on investments | (1.74) | 1.06 | (1.16) | 2.25 | (.32) | (.33) |
Total from Investment Operations | (1.46) | 1.23 | (1.02) | 2.45 | (.23) | (.14) |
Distributions: | | | | | | |
Dividends from
investment income—net | (.24) | (.18) | (.14) | (.11) | (.09) | (.20) |
Net asset value, end of period | 11.44 | 13.14 | 12.09 | 13.25 | 10.91 | 11.23 |
Total Return (%)b | (11.36)c | 10.40 | (7.79) | 22.70 | (2.08) | (1.15) |
Ratios/Supplemental Data (%): | | | | | | |
Ratio of total expenses
to average net assetsd | 3.90e | 4.08 | 3.15 | 2.73 | 1.78 | 1.57 |
Ratio of net expenses
to average net assetsd | .40e | .40 | .40 | .39 | .39 | .40 |
Ratio of net investment income
to average net assetsd | 4.41e | 1.41 | 1.07 | 1.74 | .84 | 1.64 |
Portfolio Turnover Rate | 3.51c | 9.44 | 3.66 | 12.41 | 11.12 | 18.00 |
Net Assets, end of period ($ x 1,000) | 4,929 | 5,889 | 6,302 | 7,223 | 10,778 | 11,228 |
a Based on average shares outstanding.
b Exclusive of sales charge.
c Not annualized.
d Amounts do not include the expenses of the underlying fund.
e Annualized.
See notes to financial statements.
12
| | | | | | | |
Six Months Ended | |
April 30, 2020 | Year Ended October 31, |
Class C Shares | (Unaudited) | 2019 | 2018 | 2017 | 2016 | 2015 |
Per Share Data ($): | | | | | | |
Net asset value, beginning of period | 13.08 | 12.00 | 13.22 | 10.86 | 11.17 | 11.51 |
Investment Operations: | | | | | | |
Investment income (loss)—neta | .22 | .12 | .01 | (.03) | (.01) | .12 |
Net realized and unrealized
gain (loss) on investments | (1.74) | 1.02 | (1.12) | 2.39 | (.30) | (.34) |
Total from Investment Operations | (1.52) | 1.14 | (1.11) | 2.36 | (.31) | (.22) |
Distributions: | | | | | | |
Dividends from
investment income—net | (.09) | (.06) | (.11) | - | - | (.12) |
Net asset value, end of period | 11.47 | 13.08 | 12.00 | 13.22 | 10.86 | 11.17 |
Total Return (%)b | (11.71)c | 9.61 | (8.48) | 21.73 | (2.78) | (1.87) |
Ratios/Supplemental Data (%): | | | | | | |
Ratio of total expenses
to average net assetsd | 1.59e | 1.43 | 1.34 | 1.54 | 1.59 | 1.48 |
Ratio of net expenses
to average net assetsd | 1.15e | 1.15 | 1.15 | 1.14 | 1.14 | 1.15 |
Ratio of net investment income (loss)
to average net assetsd | 3.53e | .97 | .11 | (.26) | (.05) | 1.02 |
Portfolio Turnover Rate | 3.51c | 9.44 | 3.66 | 12.41 | 11.12 | 18.00 |
Net Assets, end of period ($ x 1,000) | 182 | 207 | 414 | 361 | 130 | 139 |
a Based on average shares outstanding.
b Exclusive of sales charge.
c Not annualized.
d Amounts do not include the expenses of the underlying fund.
e Annualized.
See notes to financial statements.
13
FINANCIAL HIGHLIGHTS (continued)
| | | | | | | |
Six Months Ended | |
April 30, 2020 | Year Ended October 31, |
Class I Shares | (Unaudited) | 2019 | 2018 | 2017 | 2016 | 2015 |
Per Share Data ($): | | | | | | |
Net asset value, beginning of period | 13.17 | 12.12 | 13.28 | 10.94 | 11.27 | 11.60 |
Investment Operations: | | | | | | |
Investment income—neta | .30 | .21 | .16 | .11 | .41 | .22 |
Net realized and unrealized
gain (loss) on investments | (1.74) | 1.06 | (1.14) | 2.38 | (.61) | (.31) |
Total from Investment Operations | (1.44) | 1.27 | (.98) | 2.49 | (.20) | (.09) |
Distributions: | | | | | | |
Dividends from
investment income—net | (.29) | (.22) | (.18) | (.15) | (.13) | (.24) |
Net asset value, end of period | 11.44 | 13.17 | 12.12 | 13.28 | 10.94 | 11.27 |
Total Return (%) | (11.27)b | 10.83 | (7.51) | 23.11 | (1.77) | (.75) |
Ratios/Supplemental Data (%): | | | | | | |
Ratio of total expenses
to average net assetsc | .09d | .08 | .07 | .09 | .05 | .03 |
Ratio of net expenses
to average net assetsc | .09d | .08 | .07 | .09 | .04 | .03 |
Ratio of net investment income
to average net assetsc | 4.80d | 1.68 | 1.25 | .88 | 3.76 | 1.96 |
Portfolio Turnover Rate | 3.51b | 9.44 | 3.66 | 12.41 | 11.12 | 18.00 |
Net Assets, end of period ($ x 1,000) | 27,230 | 35,681 | 31,776 | 25,310 | 12,802 | 715,214 |
aBased on average shares outstanding.
b Not annualized.
c Amounts do not include the expenses of the underlying fund.
d Annualized.
See notes to financial statements.
14
| | | | | | | |
Six Months Ended | |
April 30, 2020 | Year Ended October 31, |
Class Y Shares | (Unaudited) | 2019 | 2018 | 2017 | 2016 | 2015a |
Per Share Data ($): | | | | | | |
Net asset value, beginning of period | 13.16 | 12.11 | 13.27 | 10.94 | 11.26 | 10.53 |
Investment Operations: | | | | | | |
Investment income (loss)—netb | .31 | .21 | .18 | .17 | (.00)c | (.00)c |
Net realized and unrealized
gain (loss) on investments | (1.75) | 1.07 | (1.15) | 2.32 | (.19) | .73 |
Total from Investment Operations | (1.44) | 1.28 | (.97) | 2.49 | (.19) | .73 |
Distributions: | | | | | | |
Dividends from
investment income—net | (.29) | (.23) | (.19) | (.16) | (.13) | - |
Net asset value, end of period | 11.43 | 13.16 | 12.11 | 13.27 | 10.94 | 11.26 |
Total Return (%) | (11.25)d | 10.87 | (7.48) | 23.12 | (1.71) | 6.93d |
Ratios/Supplemental Data (%): | | | | | | |
Ratio of total expenses
to average net assetse | .04f | .04 | .03 | .04 | .03 | 2.42f |
Ratio of net expenses
to average net assetse | .04f | .04 | .03 | .04 | .03 | .21f |
Ratio of net investment income (loss)
to average net assetse | 4.83f | 1.70 | 1.37 | 1.45 | (.03) | (.21)f |
Portfolio Turnover Rate | 3.51d | 9.44 | 3.66 | 12.41 | 11.12 | 18.00 |
Net Assets, end of period ($ x 1,000) | 595,833 | 849,143 | 794,131 | 851,921 | 811,498 | 1 |
a From October 1, 2015 (commencement of initial offering) to October 31, 2015.
b Based on average shares outstanding.
c Amount represents less than $.01 per share.
d Not Annualized.
e Amounts do not include the expenses of the underlying fund.
f Annualized.
See notes to financial statements.
15
NOTES TO FINANCIAL STATEMENTS(Unaudited)
NOTE 1—Significant Accounting Policies:
BNY Mellon Diversified International Fund (the “fund”) is a separate diversified series of BNY Mellon Investment Funds V, Inc. (the “Company”), which is registered under the Investment Company Act of 1940, as amended (the “Act”), as an open-end management investment company and operates as a series company currently offering four series, including the fund. The fund’s investment objective is to seek long-term capital appreciation. BNY Mellon Investment Adviser, Inc. (the “Adviser”), a wholly-owned subsidiary of The Bank of New York Mellon Corporation (“BNY Mellon”), serves as the fund’s investment adviser.
The Company’s Board of Directors (the “Board”) approved, effective December 31, 2019 (the “Effective Date”), the termination of the fund’s authorized Class T shares. Prior to the Effective Date, the fund did not offer such Class T shares for purchase. The authorized Class T shares were reallocated to authorized Class Y shares increasing authorized Class Y shares from 200 million to 300 million.
BNY Mellon Securities Corporation (the “Distributor”), a wholly-owned subsidiary of the Adviser, is the distributor of the fund’s shares. The fund is authorized to issue 600 million shares of $.001 par value Common Stock. The fund currently has authorized four classes of shares: Class A (150 million shares authorized), Class C (75 million shares authorized), Class I (75 million shares authorized) and Class Y (300 million shares authorized). Class A shares generally are subject to a sales charge imposed at the time of purchase. Class C shares are subject to a contingent deferred sales charge (“CDSC”) imposed on Class C shares redeemed within one year of purchase. Class C shares automatically convert to Class A shares ten years after the date of purchase, without the imposition of a sales charge. Class I and Class Y shares are sold at net asset value per share generally to institutional investors. Other differences between the classes include the services offered to and the expenses borne by each class, the allocation of certain transfer agency costs, and certain voting rights. Income, expenses (other than expenses attributable to a specific class), and realized and unrealized gains or losses on investments are allocated to each class of shares based on its relative net assets.
The Company accounts separately for the assets, liabilities and operations of each series. Expenses directly attributable to each series are charged to that series’ operations; expenses which are applicable to all series are allocated among them on a pro rata basis.
The Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) is the exclusive reference of authoritative
16
U.S. generally accepted accounting principles (“GAAP”) recognized by the FASB to be applied by nongovernmental entities. Rules and interpretive releases of the Securities and Exchange Commission (“SEC”) under authority of federal laws are also sources of authoritative GAAP for SEC registrants. The fund is an investment company and applies the accounting and reporting guidance of the FASB ASC Topic 946 Financial Services-Investment Companies. The fund’s financial statements are prepared in accordance with GAAP, which may require the use of management estimates and assumptions. Actual results could differ from those estimates.
The Companyenters into contracts that contain a variety of indemnifications. The fund’s maximum exposure under these arrangements is unknown. The fund does not anticipate recognizing any loss related to these arrangements.
(a) Portfolio valuation: The fair value of a financial instrument is the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (i.e., the exit price). GAAP establishes a fair value hierarchy that prioritizes the inputs of valuation techniques used to measure fair value. This hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements).
Additionally, GAAP provides guidance on determining whether the volume and activity in a market has decreased significantly and whether such a decrease in activity results in transactions that are not orderly. GAAP requires enhanced disclosures around valuation inputs and techniques used during annual and interim periods.
Various inputs are used in determining the value of the fund’s investments relating to fair value measurements. These inputs are summarized in the three broad levels listed below:
Level 1—unadjusted quoted prices in active markets for identical investments.
Level 2—other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, credit risk, etc.).
Level 3—significant unobservable inputs (including the fund’s own assumptions in determining the fair value of investments).
The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.
17
NOTES TO FINANCIAL STATEMENTS (Unaudited)(continued)
Investments are valued at the net asset value of each underlying fund determined as of the close of the New York Stock Exchange (generally 4 p.m., Eastern time) on the valuation date and are generally categorized within Level 1 of the fair value hierarchy.
The following is a summary of the inputs used as of April 30, 2020in valuing the fund’s investments:
| | | | | | |
| | Level 1 - Unadjusted Quoted Prices | Level 2 - Other Significant Observable Inputs | | Level 3 -Significant Unobservable Inputs | Total |
Assets ($) | | | | |
Investments in Securities: † | | | | |
Investment Companies | 619,235,943 | - | | - | 619,235,943 |
† See Statement of Investments for additional detailed categorizations, if any.
(b)Securities transactions and investment income: Securities transactions are recorded on a trade date basis. Realized gains and losses from securities transactions are recorded on the identified cost basis. Dividend income is recognized on the ex-dividend date and interest income, including, where applicable, accretion of discount and amortization of premium on investments, is recognized on the accrual basis.
(c) Affiliated issuers: Investments in other investment companies advised by the Adviser are considered “affiliated” under the Act.
(d) Risk: Certain events particular to the industries in which the fund’s investments conduct their operations, as well as general economic, political and public health conditions, may have a significant negative impact on the investee’s operations and profitability. In addition, turbulence in financial markets and reduced liquidity in equity, credit and/or fixed income markets may negatively affect many issuers, which could adversely affect the fund. Global economies and financial markets are becoming increasingly interconnected, and conditions and events in one country, region or financial market may adversely impact issuers in a different country, region or financial market. These risks may be magnified if certain events or developments adversely interrupt the global supply chain; in these and other circumstances, such risks might affect companies world-wide. Recent examples include pandemic risks related to COVID-19 and aggressive measures taken world-wide in response by governments, including closing borders, restricting international and domestic travel, and the imposition of prolonged quarantines of large populations, and by businesses, including changes to operations and reducing staff. To the extent the fund may overweight its investments in certain countries,
18
companies, industries or market sectors, such positions will increase the fund’s exposure to risk of loss from adverse developments affecting those countries, companies, industries or sectors.
(e) Dividends and distributions to shareholders: Dividends and distributions are recorded on the ex-dividend date. Dividends from investment income-net and dividends from net realized capital gains, if any, are normally declared and paid annually, but the fund may make distributions on a more frequent basis to comply with the distribution requirements of the Internal Revenue Code of 1986, as amended (the “Code”). To the extent that net realized capital gains can be offset by capital loss carryovers, it is the policy of the fund not to distribute such gains. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP.
(e) Federal income taxes: It is the policy of the fund to continue to qualify as a regulated investment company, if such qualification is in the best interests of its shareholders, by complying with the applicable provisions of the Code, and to make distributions of taxable income and net realized capital gain sufficient to relieve it from substantially all federal income and excise taxes.
As of and during the period ended April 30, 2020, the fund did not have any liabilities for any uncertain tax positions. The fund recognizes interest and penalties, if any, related to uncertain tax positions as income tax expense in the Statement of Operations. During the period ended April 30, 2020, the fund did not incur any interest or penalties.
Each tax year in the three-year period ended October 31, 2019 remains subject to examination by the Internal Revenue Service and state taxing authorities.
The tax character of distributions paid to shareholders during the fiscal year ended October 31, 2019 was as follows: ordinary income $15,451,160. The tax character of current year distributions will be determined at the end of the current fiscal year.
NOTE 2—Bank Lines of Credit:
The fund participates with other long-term open-end funds managed by the Adviser in a $927 million unsecured credit facility led by Citibank, N.A. (the “Citibank Credit Facility”) and a $300 million unsecured credit facility provided by The Bank of New York Mellon (the “BNYM Credit Facility”), a subsidiary of BNY Mellon and an affiliate of the Adviser, each to be utilized primarily for temporary or emergency purposes, including the financing of redemptions (each, a “Facility”). The Citibank Credit Facility
19
NOTES TO FINANCIAL STATEMENTS (Unaudited)(continued)
is available in two tranches: (i) Tranche A is in an amount equal to $747 million and is available to all long-term open-ended funds, including the fund, and (ii) Tranche B is an amount equal to $180 million and is available only to BNY Mellon Floating Rate Income Fund, a series of BNY Mellon Investment Funds IV, Inc. Prior to March 11, 2020, the Citibank Credit Facility was $1.030 billion with Tranche A available in an amount equal to $830 million and Tranche B available in an amount equal to $200 million. In connection therewith, the fund has agreed to pay its pro rata portion of commitment fees for Tranche A of the Citibank Credit Facility and the BNYM Credit Facility. Interest is charged to the fund based on rates determined pursuant to the terms of the respective Facility at the time of borrowing.
The average amount of borrowings outstanding under the Facilities during the period ended April 30, 2020 was approximately $19,780 with a related weighted average annualized interest rate of 1.89%.
NOTE 3—Management Fee and Other Transactions with Affiliates:
(a)Pursuant to a management agreement with the Adviser, there is no management fee paid to the Adviser. The fund invests in other affiliated mutual funds advised by the Adviser. All fees and expenses of the underlying funds are reflected in the underlying fund’s net asset value. The Adviser has contractually agreed, from November 1, 2019 through February 28, 2021, to waive receipt of its fees and/or assume the expenses of the fund, so that the total annual fund operating expenses (including acquired fund (underlying funds) fees and expenses) of none of its classes (excluding Rule 12b-1 fees, shareholder services fees, taxes, interest, brokerage commissions, commitment fees on borrowings and extraordinary expenses) exceed 1.05% of the fund’s average daily net assets. On or after February 28, 2021, the Adviser may terminate this expense limitation at any time. The reduction in expenses, pursuant to the undertaking, amounted to $97,149 during the period ended April 30, 2020.
During the period ended April 30, 2020, the Distributor retained $14 from commissions earned on sales of the fund’s Class A shares.
(b) Under the Distribution Plan adopted pursuant to Rule 12b-1 under the Act, Class C shares pay the Distributor for distributing its shares at an annual rate of .75% of the value of its average daily net assets. During the period ended April 30, 2020, Class C shares were charged $743 pursuant to the Distribution Plan.
(c)Under the Shareholder Services Plan, Class A and Class C shares pay the Distributor at an annual rate of .25% of the value of their average daily
20
net assets for the provision of certain services. The services provided may include personal services relating to shareholder accounts, such as answering shareholder inquiries regarding the fund and providing reports and other information, and services related to the maintenance of shareholder accounts. The Distributor may make payments to Service Agents (securities dealers, financial institutions or other industry professionals) with respect to these services. The Distributor determines the amounts to be paid to Service Agents. During the period ended April 30, 2020, Class A and Class C shares were charged $6,917and $248, respectively, pursuant to the Shareholder Services Plan.
The fund has an arrangement with the transfer agent whereby the fund may receive earnings credits when positive cash balances are maintained, which are used to offset transfer agency fees For financial reporting purposes, the fund includes net earnings credits, if any, as an expense offset in the Statement of Operations.
The fund has an arrangement with the custodian whereby the fund will receive interest income or be charged an overdraft fees when cash balances are maintained. For financial reporting purposes, the fund includes this interest income and overdraft fees, if any, as interest income in the Statements of Operations.
The fund compensates BNY Mellon Transfer, Inc., a wholly-owned subsidiary of the Adviser, under a transfer agency agreement for providing transfer agency and cash management services for the fund. The majority of transfer agency fees are comprised of amounts paid on a per account basis, while cash management fees are related to fund subscriptions and redemptions. During the period ended April 30, 2020, the fund was charged $3,163 for transfer agency services. These fees are included in Shareholder servicing costs in the Statement of Operations.
The fund compensates The Bank of New York Mellon under a custody agreement for providing custodial services for the fund. These fees are determined based on net assets, geographic region and transaction activity. During the period ended April 30, 2020, the fund was charged $447 pursuant to the custody agreement.
During the period ended April 30, 2020, the fund was charged $5,366 for services performed by the Chief Compliance Officer and his staff. These fees are included in Chief Compliance Officer fees in the Statement of Operations.
The components of “Due from BNY Mellon Investment Adviser, Inc. and affiliates” in the Statement of Assets and Liabilities consist of: Distribution Plan fees of $107, Shareholder Services Plan fees of $1,004, custodian fees
21
NOTES TO FINANCIAL STATEMENTS (Unaudited)(continued)
of $297, Chief Compliance Officer fees of $3,551 and transfer agency fees of $1,048, which are offset against an expense reimbursement currently in effect in the amount of $11,391.
(d) Each Board member also serves as a Board member of other funds in the BNY Mellon Family of Funds complex. Annual retainer fees and attendance fees are allocated to each fund based on net assets.
NOTE 4—Securities Transactions:
The aggregate amount of purchases and sales of investment securities, excluding short-term securities, during the period ended April 30, 2020, amounted to $28,080,553 and $159,810,418, respectively.
At April 30, 2020, accumulated net unrealized appreciation on investments was $120,633,069, consisting of $125,899,030 gross unrealized appreciation and $5,265,961 gross unrealized depreciation.
At April 30, 2020, the cost of investments for federal income tax purposes was substantially the same as the cost for financial reporting purposes (see the Statement of Investments).
22
INFORMATION ABOUT THE RENEWAL OF THE FUND’S MANAGEMENT AGREEMENT (Unaudited)
At a meeting of the fund’s Board of Directors held on February 10-11, 2020, the Board considered the renewal of the fund’s Management Agreement pursuant to which the Adviser provides the fund with investment advisory and administrative services (the “Agreement”). The Board members, none of whom are “interested persons” (as defined in the Investment Company Act of 1940, as amended) of the fund, were assisted in their review by independent legal counsel and met with counsel in executive session separate from representatives of the Adviser. In considering the renewal of the Agreement, the Board considered several factors that it believed to be relevant, including those discussed below. The Board did not identify any one factor as dispositive, and each Board member may have attributed different weights to the factors considered.
Analysis of Nature, Extent, and Quality of Services Provided to the Fund. The Board considered information provided to it at the meeting and in previous presentations from representatives of the Adviser regarding the nature, extent, and quality of the services provided to funds in the BNY Mellon fund complex, including the fund. The Adviser provided the number of open accounts in the fund, the fund’s asset size and the allocation of fund assets among distribution channels. The Adviser also had previously provided information regarding the diverse intermediary relationships and distribution channels of funds in the BNY Mellon fund complex (such as retail direct or intermediary, in which intermediaries typically are paid by the fund and/or the Adviser) and the Adviser’s corresponding need for broad, deep, and diverse resources to be able to provide ongoing shareholder services to each intermediary or distribution channel, as applicable to the fund.
The Board also considered research support available to, and portfolio management capabilities of, the fund’s portfolio management personnel and that the Adviser also provides oversight of day-to-day fund operations, including fund accounting and administration and assistance in meeting legal and regulatory requirements. The Board also considered the Adviser’s extensive administrative, accounting and compliance infrastructures.
Comparative Analysis of the Fund’s Performance and Management Fee and Expense Ratio. The Board reviewed reports prepared by Broadridge Financial Solutions, Inc. (“Broadridge”), an independent provider of investment company data, which included information comparing (1) the fund’s performance with the performance of a group of institutional international multi-cap core funds (the “Performance Group”) and with a broader group of retail and institutional international multi-cap core funds (the “Performance Universe”), all for various periods ended December 31, 2019, and (2) the fund’s actual and contractual management fees and total expenses with those of the same group of funds in the Performance Group (the “Expense Group”) and with a broader group of institutional international multi-cap core funds, excluding outliers (the “Expense Universe”), the information for which was derived in part from fund financial statements available to Broadridge as of the date of its analysis. The Adviser previously had furnished the Board with a description of the methodology Broadridge used to
23
INFORMATION ABOUT THE RENEWAL OF THE FUND’S MANAGEMENT AGREEMENT (Unaudited) (continued)
select the Performance Group and Performance Universe and the Expense Group and Expense Universe.
Representatives of the Adviser stated that the usefulness of performance comparisons may be affected by a number of factors, including different investment limitations and policies that may be applicable to the fund and comparison funds. The Board discussed with representatives of the Adviser the results of the comparisons and considered that the fund’s total return performance was above the Performance Group and Performance Universe medians for all periods, except the one- and four-year periods when it was below the Performance Group median. The Board considered the relative proximity of the fund’s performance to the Performance Group median in the periods when performance was below median. It was noted that there were only three other funds in the Performance Group. The Adviser also provided a comparison of the fund’s calendar year total returns to the returns of the fund’s benchmark index, and it was noted that the fund’s returns were above the returns of the index in six of the ten calendar years shown.
The Board reviewed the range of actual and contractual management fees and total expenses as a percentage of average net assets of the Expense Group and Expense Universe funds and discussed the results of the comparisons. The Board considered that, like most other funds in the Expense Group, the fund pays management fees only at the underlying fund (acquired fund) level, so that the contractual and actual management fees of the fund were zero. The Board further considered that the fund’s total expenses (including acquired fund (underlying fund) fees and expenses) were above the Expense Group median and equal to the Expense Universe median total expenses.
Representatives of the Adviser stated that the Adviser has contractually agreed, until February 28, 2021, to assume the expenses of the fund so that the total annual fund operating expenses (including acquired fund (underlying fund) fees and expenses) of none of its classes (excluding Rule 12b-1 fees, shareholder services fees, taxes, interest, brokerage commissions, commitment fees on borrowings and extraordinary expenses) exceed 1.05% of the fund’s average daily net assets.
Representatives of the Adviser reviewed with the Board the management or investment advisory fees and total expenses of funds advised or administered by the Adviser that are in the same Lipper category as the fund. Since the fund does not pay any management fees directly to the Adviser, the Board did not consider this information relevant to its consideration of the Agreement.
Analysis of Profitability and Economies of Scale. Representatives of the Adviser reviewed the expenses allocated and profit received by the Adviser and its affiliates and the resulting profitability percentage for managing the fund and the aggregate profitability percentage to the Adviser and its affiliates for managing the funds in the BNY Mellon fund complex, and the method used to determine the expenses and profit. The Board also considered the expense limitation arrangement and its effect on the profitability of the Adviser and its affiliates. Since the fund pays no fees to the Adviser
24
under the Agreement, the Board did not consider profitability or economies of scale with respect to the fund relevant to its consideration of the Agreement.
The Board also considered potential benefits to the Adviser from acting as investment adviser and took into consideration that there were no soft dollar arrangements in effect for trading the fund’s investments.
At the conclusion of these discussions, the Board agreed that it had been furnished with sufficient information to make an informed business decision with respect to the renewal of the Agreement. Based on the discussions and considerations as described above, the Board concluded and determined as follows.
· The Board concluded that the nature, extent and quality of the services provided by the Adviser are adequate and appropriate.
· The Board was satisfied with the fund’s performance.
In evaluating the Agreement, the Board considered these conclusions and determinations and also relied on its previous knowledge, gained through meetings and other interactions with the Adviser and its affiliates, of the Adviser and the services provided to the fund by the Adviser. The Board also relied on information received on a routine and regular basis throughout the year relating to the operations of the fund and the investment management and other services provided under the Agreement, including information on the investment performance of the fund in comparison to similar mutual funds and benchmark performance indices; general market outlook as applicable to the fund; and compliance reports. In addition, the Board’s consideration of the contractual fee arrangements for the fund had the benefit of a number of years of reviews of the Agreement for the fund, or substantially similar agreements for other BNY Mellon funds that the Board oversees, during which lengthy discussions took place between the Board and representatives of the Adviser. Certain aspects of the arrangements may receive greater scrutiny in some years than in others, and the Board’s conclusions may be based, in part, on their consideration of the fund’s arrangements, or substantially similar arrangements for other BNY Mellon funds that the Board oversees, in prior years. The Board determined to renew the Agreement.
25
BNY Mellon Diversified International Fund
240 Greenwich Street
New York, NY 10286
Adviser
BNY Mellon Investment Adviser, Inc.
240 Greenwich Street
New York, NY 10286
Custodian
The Bank of New York Mellon
240 Greenwich Street
New York, NY 10286
Transfer Agent &
Dividend Disbursing Agent
BNY Mellon Transfer, Inc.
240 Greenwich Street
New York, NY 10286
Distributor
BNY Mellon Securities Corporation
240 Greenwich Street
New York, NY 10286
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Ticker Symbol: | Class A: DFPAX Class C: DFPCX Class I: DFPIX Class Y: DDIFX |
Telephone Call your financial representative or 1-800-373-9387
Mail The BNY Mellon Family of Funds, 144 Glenn Curtiss Boulevard, Uniondale, NY 11556-0144
E-mailSend your request toinfo@bnymellon.com
InternetInformation can be viewed online or downloaded atwww.bnymellonim.com/us
The fund files its complete schedule of portfolio holdings with the Securities and Exchange Commission (“SEC”) for the first and third quarters of each fiscal year on Form N-PORT. The fund’s Forms N-PORT are available on the SEC’s website atwww.sec.gov.
A description of the policies and procedures that the fund uses to determine how to vote proxies relating to portfolio securities and information regarding how the fund voted these proxies for the most recent 12-month period ended June 30 is available atwww.bnymellonim.com/us and on the SEC’s website at www.sec.gov and without charge, upon request, by calling 1-800-373-9387.
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© 2020 BNY Mellon Securities Corporation
6209SA0420 | 
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