The Bank Of New York Mellon Corporation · NYSE:BNY
The Bank Of New York Mellon — Investor Presentation (May 2026)
30 slides from The Bank Of New York Mellon's investor presentation, May 19, 2026
Slide 1: Adapting to Change: How a Flexible Approach Can Drive Stronger Outcomes
ADAPTING TO CHANGE: HOW A FLEXIBLE APPROACH CAN DRIVE STRONGER OUTCOMES 19 May 2026 Damien Hill Senior Portfolio Manager, Insight Investment For Professional Clients only.
Slide 2: Learning Objectives
LEARNING By the end of this presentation, you will be able to: OBJECTIVES Clearly explain current economic and market 01 factors that make fixed income investments attractive, 02 List and evaluate current fixed income investment opportunities, and propose how these can be integrated into client port
Slide 3: Why now for fixed income? Middling growth and recession risk contained
WHY NOW FOR FIXED INCOME? Middling growth and recession risk contained Middling growth 1 year recession probabilities broadly stable 6 Recession probability over next 1 year (%) 100 5 Real GDP growth (%yoy) 80 4 3 60 2 40 1 20 0 -1 0 Jun-22 Jun-23 Jun-24 Jun-25 Jun-26 Jun-27 Jan-18 Jan-16 Jan-17 Jan
Slide 4: Inflation and labour markets dynamics
WHY NOW FOR FIXED INCOME? Inflation and labour markets dynamics Prices contained above central bank targets Labour market weakness seems to be stabilising 12 7 Consumer price indices (%yoy) 10 Unemployment Rate (%) 6 8 6 5 4 4 2 0 3 Dec-22 Dec-23 Dec-24 Dec-25 Dec-26 Jun-22 Jun-23 Jun-24 Jun-25 Jun-
Slide 5: Monetary policy beginning to diverge across geographies
WHY NOW FOR FIXED INCOME? Monetary policy beginning to diverge across geographies Policy rates have been heading lower Market pricing a divergent path for central banks 3.5 6 3.0 Number of 25bp policy rate moves 5 2.5 4 2.0 Policy rate % 3 1.5 2 1.0 0.5 1 0.0 0 -0.5 -1 Jun 26 Sep 26 Dec 26 2018 2020
Slide 6: Forecast yields across Government bond curves
WHY NOW FOR FIXED INCOME? Forecast yields across Government bond curves Forecasting broadly lower yields and steeper curves outside of the UK 2-year 5-year 10-year 30-year Country Forecast Current Change Forecast Current Change Forecast Current Change Forecast Current Change UK 3.65% 4.41% -0.76% 4.
Slide 7: Pockets of relative value
WHAT ARE THE OPPORTUNITIES? Pockets of relative value Implied terminal rate % (5y5y) 30-year GBP hedged yield (%) Australia Japan New Zealand New Zealand United Kingdom United Kingdom United States Canada Canada Denmark Korea Eurozone Denmark United States Eurozone China Japan Korea China Australia
Slide 8: Leverage trends favour corporate over government bonds
WHAT ARE THE OPPORTUNITIES? Leverage trends favour corporate over government bonds Corporate and government leverage1 Corporate and government bond yields2 4 110% 8.0 US Government Debt to GDP (%) 105% 7.0 3.5 100% Corporate leverage x 6.0 95% 3 Global IG yield % 90% 5.0 2.5 85% 4.0 80% 2 75% 3.0 70
Slide 9: Starting yields positively skew future return experience
WHY NOW FOR FIXED INCOME? Starting yields positively skew future return experience Simulated return Duration Yield to Simulated return Breakeven if yields rise (years) maturity (%) if yields fall 1.0% yield increase 1.0% Global IG corporate1 5.8 years 4.7% 10.0% -0.6% 0.9% Sterling IG corporate 5.9
Slide 10: Add flexibility as not all risk premia are priced equally
WHAT ARE THE OPPORTUNITIES? Add flexibility as not all risk premia are priced equally 180 160 Default 140 120 100 Subordination Spread (bp) 80 Country Systemic Complexity 60 40 20 Cheaper 0 0% 10% 20% 30% 40% 50% 60% 70% 80% Current percentile rank (versus last 10 years) Source: Insight as at 28 Apr
Slide 11: Europe more vulnerable to energy price shocks
WHAT ARE THE OPPORTUNITIES? Europe more vulnerable to energy price shocks Brent Crude Oil and European Natural Gas Euro IG less USD IG corporate bond spreads 120 80 0.8 Generic Brent Crude future (USD per barrel) 110 70 0.7 ICE Endex Dutch TTF natural gas 0.6 100 60 Credit spread (%) 0.5 90 50 futur
Slide 12: Private credit in the spotlight
WHAT ARE THE OPPORTUNITIES? Private credit in the spotlight Direct lending AUM remains near highs which could lead to Spread premium increasingly under pressure² “light” due diligence¹ 700 300 250 600 200 Euro (bp) 150 500 100 400 50 0 300 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Slide 13: Bonds funding AI capex – risk or opportunity?
WHAT ARE THE OPPORTUNITIES? Bonds funding AI capex – risk or opportunity? AI spending is likely to boost growth significantly¹ Bond issuance by big AI tech companies² 2.0% 125 AI capex as % of US 1.6% 100 1.2% GDP US$ billion 75 0.8% 0.4% 50 0.0% 25 2023 2024 2025 2026 2027 2028 0 AI Capex as % GDP
Slide 14: M&A activity to rise driven by US 'animal spirits'?
WHAT ARE THE OPPORTUNITIES? M&A activity to rise driven by US ‘animal spirits’? 2000 25000 1800 Global M&A volume ($bn) 1600 20000 1400 Global deal count 1200 15000 1000 800 10000 600 400 5000 200 0 0 2007 2020 2006 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2021 2022 2023 2024 2025
Slide 15: Active over passive
PASSIVE ETF RETURN VERSUS INDEX1 Active over passive Passive ETF return versus index1 Median active manager alpha2 0.0 1.0 0.8 0.8 0.7 -0.1 0.6 0.6 0.4 0.4 0.3 -0.2 -0.2 -0.2 0.4 %, per annum %, per annum 0.2 -0.3 0.0 -0.4 -0.2 -0.2 -0.4 -0.5 -0.5 -0.6 -0.6 -0.8 -0.6 -1.0 -0.9 -0.7 5 year 10 year 5
Slide 16: Return experience varies by fixed income asset class
WHY IS IT ESSENTIAL TO STAY ACTIVE IN FIXED INCOME? Return experience varies by fixed income asset class Asset class performance rankings constantly shift 2026 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 YTD 10.25 13.69 10.81 12.00 59.40 1
Slide 17: Dynamic asset allocation
Dynamic asset allocation Performance of our strategic bond strategy compared to average asset allocation basket Gross of fees return series Average Allocation Asset class allocation range 120 115.77 Government 13% 3% to 39% 115 110 Developed 45% 2% to 94% Total return index 106.09 market IG 105 Deve
Slide 18: Learning Outcomes
LEARNING You should now be able to: OUTCOMES Clearly explain current economic and market 01 factors that make fixed income investments attractive, 02 List and evaluate current fixed income investment opportunities, and propose how these can be integrated into client portfolios, Identify and articula
Slide 19: Insight's Strategic Bond Fund
INSIGHT’S STRATEGIC BOND FUND 19
Slide 20: Why are we different?
Why are we different? Power of marginal gains What makes us different? Why? No distractions, singular focus to deliver best in class 1 Specialist global fixed income manager performance 2 Truly global platform with regional balance Not reliant on a single region to generate ideas Combine top-down as
Slide 21: Insight's Strategic Bond Fund
Insight’s Strategic Bond Fund Competitive alpha, consistently delivered ✓ Consistent & competitive alpha ✓ Outcome focussed ✓ Hedged to GBP For investors who want…….. ✓ Global rates & focus ✓ Investment flexibility Core fixed income or outsourced fixed income allocation Total net assets Yield to mat
Slide 22: What's the view?
What’s the view? Duration Cross market Beta management Macro credit RV • Overweight • Australia versus US • Small underweight • USD attractive vs Euro • UST 10yr 4.1% • Germany • Positive cycle • ABS appealing • UKT 10yr 4.5% versus Sweden analysis, • HY fair vs IG • LATAM versus negative • Fed 3.1%
Slide 23: Directional interest rate and credit risk management
BNY Strategic Bond Fund Directional interest rate and credit risk management 9.0 8.0 7.5 Credit spread duration (years) 7.0 Interest rate duration (years) 8.0 6.5 6.0 7.0 5.5 5.0 4.5 6.0 4.0 3.5 5.0 3.0 Aug-21 Dec-21 Apr-22 Aug-22 Dec-22 Apr-23 Aug-23 Dec-23 Apr-24 Aug-24 Dec-24 Apr-25 Aug-25 Dec-25
Slide 24: BNY Strategic Bond Fund: Positioning summary
BNY Strategic Bond Fund Positioning summary as at 31 March 2026 Characteristics Further characteristics Asset allocation⁴ % Size (£ million) 262.1 Interest rate duration (years) 5.8 Global DM Gov 9.5 Inception date 24/08/2021 Credit spread duration² (years) 9.0 Global DM IG 45.4 Yield to maturity (%
Slide 25: Conclusion
Conclusion 25
Slide 26: What's the view?
What’s the view? Income is back in fixed income skewing potential returns Macroeconomic and policy uncertainty creates a supportive backdrop for fixed income Fixed income allocators should keep investing with active managers 26
Slide 27: Thank you
Thank you Damien Hill >BNY | INVESTMENTS
Slide 28: BNY Strategic Bond Fund: Investment objective, annual performance and key risks
BNY Strategic Bond Fund Investment objective, annual performance and key risks 28
Slide 29: Important Information
PAST PERFORMANCE IS NOT A GUIDE TO FUTURE PERFORMANCE. THE VALUE OF INVESTMENTS AND THE INCOME RECEIVED CAN FALL AS WELL AS RISE AND INVESTORS MAY NOT GET BACK THE ORIGINAL AMOUNT INVESTED. Important Information For Professional Clients only. This is a financial promotion. For a full list of risks a
Slide 30: BNY Investments
> BNY | INVESTMENTS
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