Second Quarter

Transcription

1 1 Second Quarter 2018

2 2 BNY Mellon: The Investments Company for the World

3 BNY Mellon: The Investments Company for the World Dedicated to Helping Clients Manage and Service Their Assets Throughout the Investment Life Cycle INVESTMENT SERVICES Full range of financial operations, cash management and global payment services $33.6T assets under custody and administration 1 largest global custodian in the world 4 $2.8T # 1 Average tri-party repo balances 1,5 INVESTMENT MANAGEMENT Institutional and retail asset management $1.8T assets under management 1 7 th 4 th largest U.S. largest asset manager worldwide 2 institutional money manager 3 1. Source: BNY Mellon. Data as of June 30, Willis Towers Watson, October Based on discretionary assets under management at the end of 2016; does not include saving/current accounts or assets unrelated to investment business, money market funds, advisory portfolios, or transactional assets. Analysis based on data supplied by third parties in U.S. dollars. 3. Pensions & Investments, May Rankings based on a survey of more than 580 investment management firms that provided information in response to an online survey. In order to qualify for inclusion, the firm must manage assets for U.S. institutional tax-exempt clients. Ranked by total worldwide institutional assets under management as of 12/31/ Forbes, May Ranking based on Q data. 5. Includes tri-party repo collateral worldwide. 3

4 BNY Mellon Investment Management Harness the Strength of the World s Largest Multi-Boutique Investment Manager GLOBAL REACH CLIENT CENTRIC DIVERSE THOUGHT LEADERSHIP UNRIVALED EXPERTISE 6 continents, 35 countries and over 100 markets Unwavering commitment to putting clients at the center of everything we do Differentiated investment perspectives with no single house view In-depth knowledge of the global marketplace and a keen understanding of local economies 4

5 BNY Mellon Investment Management The Power of One The Strength of Many Delivering Investment Excellence Through Our Multi-Boutique Model, Offering Diverse Expertise Across a Full Spectrum of Asset Types Global sub-investment grade debt asset management $31.7B Brazilian equity; long/short; macro & fixed income strategies $2.5B Full array of money market funds & select offshore liquidity funds $213.8B Fund of hedge funds; non-proprietary manager of managers $3.9B Leader in global fixed income, risk management solutions and absolute return investing $794.1B Active manager of equity, bond, multi-asset, real-return and income solutions, underpinned by a distinctive global thematic framework $67.1B Multi-strategy private equity investing; direct investment & multi-manager funds $13.2B Global equity investment management $66.3B A broad range of research-driven global active equity strategies $49.4B Fundamentals-based systematic investing; index and multi-asset & multi-factor solutions $363.4B Fundamental active fixed income and credit capabilities $137.0B AUM in USD as of June 30, Please see page 32 for disclosures. The Boston Company, Mellon Capital and Standish are brands of BNY Mellon Asset Management North America Corporation. 5

6 6 Introduction to Newton

7 Two Professional Firms Committed to Your Success Dreyfus Dreyfus Investments is a division of MBSC Securities Corporation, a subsidiary of The Dreyfus Corporation. The Dreyfus Corporation was founded in Newton London-based global equities investment managers for more than 30 years. Newton, a subsidiary of BNY Mellon, has approximately $67.1 billion in assets under management (AUM) with $25.1 billion in global equity as of June 30, Newton and/or the Newton Investment Management brand refers to the following group of affiliated companies: Newton Investment Management Limited, Newton Investment Management (North America) Limited (NIMNA Ltd) and Newton Investment Management (North America) LLC (NIMNA LLC). NIMNA LLC personnel are supervised persons of NIMNA Ltd and NIMNA LLC does not provide investment advice, all of which is conducted by NIMNA Ltd. NIMNA LLC and NIMNA Ltd are the only Newton companies to offer services in the U.S. Newton is a wholly owned subsidiary of The Bank of New York Mellon Corporation. In addition, AUM for Newton may include assets managed by Newton s officers as dual officers or employees of The Bank of New York Mellon Corporation and assets of wrap-fee account(s) for which Newton Investment Management Limited provides certain investment management services to MBSC in connection with these products. Newton, The Dreyfus Corporation and MBSC Securities Corporation are subsidiaries of The Bank of New York Mellon Corporation. MBSC Securities Corporation, a registered brokerdealer and investment adviser, provides discretionary investment management services for the products described in this presentation. Newton provides certain investment management services to MBSC in connection with the strategies described in this presentation. 7

8 The Newton Difference Unique Combination of Bottom-Up Stock Selection Within a Thematic Framework Themes help identify areas of risk and opportunity, helping narrow the stock universe. Bottom-up stock selection is a priority decision, not sector or country allocations. Flexible investment analysis allows for using differing investment tools, not rules, during changing market and business cycles. The investment process is style and market cap agnostic. Performance-Driven Culture Newton manages a proportion of its assets utilizing a performance fee-based structure, attempting to create a performance-driven culture aligned with clients objectives. Team-Focused Culture Newton s investment process relies on the interaction between its global analysts, portfolio managers and regional specialists. This process looks to capture the best ideas within the house and deliver them into each client s portfolio. 8

9 Newton s Investment Philosophy Global thematic investing since 1978 We believe in Global Themes Analysis Conviction Thinking globally, evaluating each idea in a global context Using themes to understand the forces driving global change Conducting rigorous fundamental analysis incorporating Environmental, Social and Governance (ESG) considerations Constructing investment portfolios incorporating our highest-conviction ideas Source: Newton, 2017 Our primary objective is delivering results for our clients 9

10 Newton Investment Management Business Overview as of June 30, 2018 Focus Single location Investment only; no distractions Stability and experience Approaching 40 years in global investing Team-based approach Perspective Thematic framework Proprietary global research; skilled security selection Integrated environmental, social and governance (ESG) research Alignment of interests Performance culture Real equity ownership 1 AUM for Strategic Asset Allocation included in respective underlying asset class. Source: Newton, June 30, 2018 Our culture is aligned with your objectives 10

11 Newton Global Equity Team Idea Generation and Input Global Strategy Group Thematic Focus Groups Bond/FX Strategy Group Global Research 14 years investment experience 8 years at Newton Global Equity Leadership 20 years investment experience 13 years at Newton Portfolio Managers 20 years investment experience 15 years at Newton Global Equity Industry analysts Multi-Asset & UK Responsible Multi-Asset Investment analysts Raj Shant Robert Hay Jeff Munroe Paul Markham Terry Coles Real Return Credit analysts Emerging & Asian Equity Nick Clay Colin Rutter Robert Canepa-Anson John Gilmore Yuko Takano Emma Mogford Fixed Income Source: Newton, July 9, Years investment experience and tenure at Newton are team average numbers. Total number of investment personnel = 68 (some investment professionals are included in more than one category). Length and breadth of experience, diversity of perspectives 11

12 Investment Philosophy We believe In active management, where portfolios reflect our conviction In taking a long-term perspective, using themes to understand forces driving change Every investment idea must be understood in a global context Every investment idea should be subject to rigorous and consistent analysis 12

13 Our Investment Process We think globally, using themes which: Represent key forces of observable change Provide long-term orientation Provide a stimulus for debate and focus for research We conduct proprietary global research with: Career global sector analysts Credit, asset class, regional, strategic complements Responsible investment themes Investment engine deliberately based in London. We believe this fosters: Perspective: dispassionate global judgment Communication culture, robust real-time debate Efficient idea generation and implementation Client requirements Client portfolios Investment risk group We construct single portfolios: Research recommended lists act as menus Model portfolios provide leadership Portfolio managers given discretion and accountability Perspective, pragmatism and insight are key 13

14 Global Thematic Framework Themes Help Identify Opportunities and Challenges Identify Drivers of Long-Term Change Represent the First Stages of Idea Generation and Risk Management Allow a Longer-Term Global Perspective in a Volatile World Provide a Dynamic Framework for Investment Thinking Source: Newton, Objective trends, not subjective forecasts 14

15 Stock Selection Newton s Long-Term Perspective Is Built on: Themes: Identifying drivers of change, providing a framework for idea generation Fundamentals: Conducting rigorous proprietary research, integrating ESG 1 analysis Valuation: Investing in what we believe to be strong businesses at the right price IDEAL CANDIDATE Source: Newton, Environmental, Social and Governance. 15

16 Newton Process Overview Themes Themes: Long-term in nature, set the background for our stock research and portfolio construction Global Research Global Research: Career industry analysts provide global stock recommendations, with integrated ESG research Portfolio Managers Client Portfolios Portfolio Managers: Provide a combination of perspectives and ensure ideas are delivered effectively and consistently into portfolios Client Portfolios: High-conviction, single portfolios constructed from firm-wide recommendations Process encourages lateral thinking, teamwork, fluid communication and swift implementation of ideas 16

17 Global Research Team Overview Duncan Bulgin Head of Research Robert Canepa-Anson Tim Lucas Michal Plotkowiak Laura Sheehan Mathieu Poitrat Rachmaninoff Stephen Benson Jeremy Stuber Fati Naraghi Jonathan McMullan Vivek Gautam Nick Pope Sally Springer 1 Emily Heaven Stephen Rowntree Global research 16 Industry analysts 6 Credit analysts 5 Responsible Investment 3 Themes & Strategy Maria Toneva Amy Chamberlain Ben Smith 1 Rob Stewart Head of Responsible and Charity Investment Ian Burger Victoria Barron Lottie Meggitt Lloyd McAllister Howard Cunningham Scott Freedman Martin Chambers Parmeshwar Chadha Ashwin Palta Anna Martinez Charles French Head of Investment Brendan Mulhern Edward Geall 1 Maternity cover. Source: Newton, July 9, Fostering collaborative teamwork 17

18 Buy Discipline Newton typically buys stocks that it believes are: Attractive Valuation Attractively valued (upside potential) Ideal Candidate Strong Fundamentals Financially and commercially sound (pass quality tests) THEMES Benefiting from one or more investment themes Strong buy discipline 18

19 Sell Discipline Newton typically sells stocks that it believes are: Attractive Valuation Fully valued or where growth prospects are no longer applicable Ideal Candidate Strong Fundamentals Showing a deterioration of business fundamentals THEMES No longer a beneficiary of an investment theme Strong sell discipline 19

20 Potential Newton Benefits Newton is a highly experienced asset manager with an established history of investing in international markets. London-based manager with 30+ years of global equity investing and an international equity composite launched 18 years ago. Experienced team of portfolio managers supported by global sector analysts. Its entire investment team s location is in one single office and designed to encourage efficient idea generation and rapid implementation of ideas into portfolios. Thoughtful combination of rigorous bottom-up analyses within a global thematic framework: Themes help the investment team identify areas of risk and opportunity, while rigorous bottom-up analyses help the team select the right securities. Client-focused firm with a performance-driven culture focused on delivering for our clients. 20

21 Newton Dreyfus Global Equity Portfolios 21

22 Newton Dreyfus Global Equity Strategy Type Global Equity Objective To achieve long-term capital growth from investing in global equities A focused, actively managed portfolio of global equities Flexibility: ability to invest anywhere around the world Freedom: portfolio can deviate considerably from the benchmark Integrated ESG research Stocks held will generally be Research Recommended by Newton and/or constituents of Newton s Global Equity model portfolio There s no guarantee the strategy s objective will be achieved. Portfolio holdings are subject to change at any time without notice and may not be construed as investment recommendations. Please see important information at the end of this presentation. 22

23 Portfolio Information Newton Dreyfus Global Equity as of 6/30/18 TOP 10 HOLDINGS SECTOR POSITIONS RELATIVE TO MSCI WORLD (%) Company Percent of Portfolio Microsoft 5.67 Alphabet 3.57 Citigroup 3.30 AIA Group 2.74 Cisco Systems 2.56 Ferguson 2.46 Costco Wholesale 2.38 Apple 2.34 SAP 2.34 RELX 2.27 Total Consumer Staples Information Technology Other* Utilities Energy Telecommunication Services Real Estate REGIONAL ALLOCATION Newton Dreyfus Global Equity (%) MSCI World (%) Relative (%) Europe Eurozone Europe Non-Eurozone Japan Emerging Other Asia Pacific ex-japan North America Emerging Market (Subtotal) Developed Market (Subtotal) Health Care Consumer Discretionary Industrials Financials Materials Cash Source: Newton. Based on a model wrap account and subject to change; actual individual accounts may vary. Sectors are defined according to the Global Industry Classification Standard. There can be no assurance that the securities purchased will remain in the portfolio or that other securities have not been purchased. The holdings listed should not be considered recommendations to purchase or sell a particular security. It should not be assumed that securities bought or sold in the future will be profitable or will equal the performance of the securities in this list. Newton will provide a complete list of portfolio holdings purchased and sold in the last 12 months upon request. The MSCI World Index is a free float-adjusted market capitalization-weighted index that is designed to measure the equity market performance of developed markets. The index includes 23 MSCI national developed market indices. An investor cannot invest directly in any index. While the MSCI World Index does not contain any ADRs, the Newton Global Equity wrap accounts are composed mostly of ADRs. * Represents position in the MSCI Japan ETF, a non-benchmark holding. 23

24 Newton Dreyfus Global Equity Performance Total Returns as of 6/30/18 12% 10% 8% 6% 10.39% 7.07% 11.08% 7.70% 4.47% 8.47% 9.44% 6.16% 9.93% 8.57% 5.31% 8.84% 4.96% 6.26% 4% 2% 1.65% 1.80% 0.88% 0.46% 0.43% 1.81% 0% -2% -1.06% Qtr YTD 1-Year 3-Year 5-Year 7-Year 10-Year Newton Dreyfus Global Equity ( Pure Gross of Fee) Newton Dreyfus Global Equity (Net 3% Max. Wrap Fee) MSCI World Index Annualized Sources: MBSC and Lipper. Past performance is no guarantee of future results. Pure gross-of-fee returns are supplemental to net-of-fee returns and do not reflect the deduction of managed account program fees. The information shown is supplemental to a fully compliant GIPS presentation following this page along with other important disclosures. The MSCI World Index is a free float-adjusted market capitalization-weighted index that is designed to measure the equity market performance of developed markets. The index includes 23 MSCI national developed market indices. An investor cannot invest directly in any index. While the MSCI World Index does not contain any ADRs, the Newton Global Equity wrap accounts are composed mostly of ADRs. Performance figures for each account within the Composite are calculated monthly on a trade-date basis. Monthly market values include all dividends, interest and accrued interest, and realized and unrealized gains or losses, if any. Through March 31, 2018, monthly market values reflected the daily weighting of cash flow using the modified Dietz method; effective April 1, 2018, they reflect the daily weighting of cash flow using the Daily Valuation method. Portfolio valuation occurs daily. Composite performance results are asset-weighted on a monthly basis using beginning-of-the-month market values. Through March 31, 2018, re-valuation of returns occurred when cash flows or security transfers in-kind exceeded 10% of the beginning-of-the-month market value, and account exclusion occurred when a client-initiated significant cash flow or transfer in-kind exceeded 30% of the beginning-of-the-month market value. As of April 1, 2018, account exclusion occurs when a client-initiated significant cash flow or security transfer in-kind exceeds 30% of the prior business day market value; the 10% rule no longer applies due to implementation of Daily Valuation cash flow weighting. The account is removed temporarily from the composite for the month of the significant cash flow or security transfer in-kind, and returned to the composite the following month. Extended periods of composite performance are computed by linking monthly returns. Dispersion measures the variability of account returns within a composite and is calculated using asset-weighted standard deviation for any time period in which at least five accounts have been open for the entire year. 24

25 Newton Dreyfus Global Equity Composite Performance Presentation Year End December 31 Composite Annual Total Return ( Pure Gross of Fees)* (%) Composite Annual Total Return (Net of Fees) (%) MSCI World Index Return (%) Number of Portfolios in Composite Composite Dispersion (%) Composite Ex- Post Standard Deviation (3-yr Annualized) ** Benchmark Ex- Post Standard Deviation (3-yr Annualized)** Composite Assets at End of Period (U.S. $ Millions) Composite Assets as a Percentage of Firm s Assets Under Management (%) Total Firm Assets Under Management (U.S. $ Millions) N/A **** , , *** * Pure gross-of-fees returns are supplemental to net-of-fees returns and do not reflect the deduction of managed account program fees. ** Three-year annualized ex-post standard deviation of the composite is not required prior to ***Assets reflect the redefined firm. Effective January 1, 2009, the firm with which this composite has been associated was redefined. At that time, MBSC, as the redefined Firm, became specifically associated with the composites for which GIPS compliance had been claimed historically by The Dreyfus Corporation ( Dreyfus ). Prior to January 1, 2009, the firm was defined as The Dreyfus Corporation and included Dreyfus and certain of its adviser subsidiaries (including MBSC). Beginning in 2009, total firm assets reflect those of MBSC, not Dreyfus. No other changes were made to this presentation because of the redefinition. **** Less than five accounts were open during the full-year period. 25

26 Newton Dreyfus Global Equity Composite Performance Presentation MBSC Securities Corporation ( MBSC or the Firm ) claims compliance with the Global Investment Performance Standards (GIPS ) and has prepared and presented this report in compliance with GIPS standards. MBSC has been independently verified for calendar years 2002 through Verification assesses whether (1) the firm has complied with the composite construction requirements of GIPS standards on a firm-wide basis and (2) the firm s policies and procedures are designed to calculate and present performance in compliance with GIPS standards. The Newton Dreyfus Global Equity Composite has been examined for the periods from April 1, 2006 through December 31, 2011, and from January 1, 2014 through December 31, The verification and performance examination reports are available upon request. A complete list and description of the Firm s composites are available upon request. For further information, please contact Dreyfus at MBSC is a registered investment adviser. MBSC is a wholly owned subsidiary of The Dreyfus Corporation ( Dreyfus ) and an indirect subsidiary of The Bank of New York Mellon Corporation ( BNY Mellon ). MBSC offers wrap account and separately managed account strategies managed by the Firm and other investment advisers. The Firm is defined as encompassing those accounts for which MBSC serves as the discretionary asset manager (as defined under, and reported, in MBSC s Form ADV) and excludes non-discretionary accounts (as defined under, and reported, in MBSC s Form ADV) and model delivery accounts. 2. Past performance is not indicative of future results and any portfolio could suffer losses as well as achieve gains. Performance returns are based in U.S. dollars, and are shown both before the deduction of managed account program fees ( pure gross of fees), and after the deduction of managed account program fees (net of fees). Net-of-fee performance figures demonstrate the compounding effect of fees and are derived by using the highest model, all-inclusive fee ( wrap fee ) of 3.00%. Returns include realized and unrealized gains and losses plus accrued income. The performance of the Newton Dreyfus Global Equity Composite (the Composite ) is based in U.S. dollars and is net of nonreclaimable withholding taxes on dividends, interest income and capital gains where applicable. Generally, equity securities held in the composite that are listed on a major U.S. exchange are valued using the last sale price reported. For foreign equity and ADR positions that trade over the counter, an imputed price may be used, based on the last sale price reported on the primary foreign exchange, converted to U.S. dollars using the current currency exchange (or spot ) rate. Additional information regarding policies for valuing portfolios, calculating performance, and preparing compliant presentations is available upon request. 26

27 Newton Dreyfus Global Equity Composite Performance Presentation 3. The Composite was created on April 1, 2006 with an inception date of April 1, From inception, the Composite consists of all fully discretionary global equity accounts subject to a wrap fee for which Newton Investment Management (North America) Limited, an affiliate of the Firm, has served as sub-adviser to MBSC. Accounts in the composite are invested in U.S. and international equities selected through a bottom-up process within a global thematic framework. The composition of the portfolios is limited to Depository Trust and Clearing Corporation (DTCC)-eligible securities of global companies, inclusive of U.S. equities and American Depositary Receipts (ADRs), index-based exchangetraded funds, and/or non-dtcc-eligible foreign ordinary shares settled in U.S. dollars. The portfolios may invest as much as 25% of their total assets in markets outside the constituents of the MSCI World Index, including a maximum of 20% in emerging markets. 4. The standard wrap fee charged to accounts included in this Composite ranges from 1.00%-3.00%, depending on assets and plan sponsor, and typically includes transaction charges, custody, advisory, servicing and consulting fees. Fees charged to individual accounts may vary. 5. Accounts are included in the Composite in the first full calendar month under management and, if terminated, remain in the historical Composite record through the last full calendar month under management. 6. Performance figures for each account within the Composite are calculated monthly on a trade-date basis. Monthly market values include all dividends, interest and accrued interest, and realized and unrealized gains or losses, if any, and reflect the daily weighting of cash flow, using the modified Dietz method. Composite performance results are asset-weighted on a monthly basis using beginning-of-the-month market values. Re-valuation of returns occurs when cash flows or security transfer in-kind exceeds 10% of the beginning-of-the-month market value. Account exclusion occurs when a client-initiated significant cash flow or security transfer in-kind exceeds 30% of the beginning-of-the-month market value. The account is removed temporarily from the composite for the month of the significant cash flow or security transfer in-kind, and returned to the composite the following month. Extended periods of composite performance are computed by linking monthly returns. Dispersion measures the variability of account returns within a composite and is calculated using asset-weighted standard deviation for any time period in which at least five accounts have been open for the entire year. 7. The benchmark for the Composite is the MSCI World Index, which is a free float adjusted market capitalization-weighted index that is designed to measure equity performance of developed markets. The index consists of select designated MSCI national developed market indices. Benchmark performance is net of withholding taxes using the highest tax rates applicable to non-resident individual investors. An investor cannot invest directly in any index. Benchmark returns are not covered by the reports of the independent accountants. 27

28 28 Appendix

29 Dreyfus Investment Consultants Northeast WA OR CA NV ID UT AZ MT WY CO NM ND SD NE KS OK TX MN IA MO AR LA WI MI IL IN OH PA WV KY N VA S VA W TN E TN NC SC MS AL GA ME VT NY NH MA CT NJ RI DE MD Wash., DC Northeast Division Central and Southeast Division West and Southwest Division AK FL AK HI PR Northeast Sales Division Carey Penswick, CIMA, Regional Director INVESTMENT CONSULTANT TERRITORY PHONE NUMBER 29 INTERNAL CONSULTANT PHONE NUMBER Jared Amatuzzo NYC (ex. Wells) amatuzzo.j@dreyfus.com Anthony Angilletta anthony.angilletta@dreyfus.com Michael Perez michael.perez@dreyfus.com Christopher Crosby DE, S NJ, PA (excl. Philadelphia) christopher.crosby@dreyfus.com Michael P. Ryan michael.p.ryan@dreyfus.com Chris Grant Boston christopher.grant@dreyfus.com Elliott Fowler elliott.fowler@dreyfus.com Michael A. Hall N NJ hall.ma@dreyfus.com Elliott Fowler elliott.fowler@dreyfus.com Michael M. Hurley Upstate NY, VT, NH, W MA, ME michael.hurley@dreyfus.com Will Reich will.reich@dreyfus.com Bob Kaler LI, Westchester kaler.rj@dreyfus.com Theresa Coen coen.tm@dreyfus.com Ross Kirwan S VA, NC, SC ross.kirwan@dreyfus.com Joseph Spina joseph.spina@dreyfus.com Kyle D. Kroberger Philadelphia kyle.kroberger@dreyfus.com Will Reich will.reich@dreyfus.com Paige Rafferty N VA, DC, MD paige.rafferty@dreyfus.com Open Vincent Zilnicki CT, RI zilnicki.v@dreyfus.com Dylan Renna dylan.renna@dreyfus.com

30 Dreyfus Investment Consultants Central and Southeast WA OR CA NV ID UT AZ MT WY CO NM ND SD NE KS OK TX MN IA MO AR LA WI MI IL IN OH PA WV KY N VA S VA W TN E TN NC SC MS AL GA ME VT NY NH MA CT NJ RI DE MD Wash., DC Northeast Division Central and Southeast Division West and Southwest Division AK FL AK HI PR Central and Southeast Sales Division Timothy M. McCormick, Regional Director INVESTMENT CONSULTANT TERRITORY PHONE NUMBER INTERNAL CONSULTANT 30 PHONE NUMBER Matthew J. Skapyak MN, ND, SD matthew.skapyak@dreyfus.com Glenn Harvey glenn.harvey@dreyfus.com Frank C. Russomano, Jr frank.russomano@dreyfus.com Michael K. Green, CIMA OH, WV michael.green@dreyfus.com David Jam david.jam@dreyfus.com Robert Gritter S FL, PR robert.gritter@dreyfus.com Kirsten Fladeland kirsten.fladeland@dreyfus.com Phillip Hall Chicago Metro phillip.hall@dreyfus.com James Cromie james.cromie@dreyfus.com Dan Hearshman, CIMA, ChFC KS, MO, NE, IA dan.hearshman@dreyfus.com Donald Tynion donald.tynion@dreyfus.com Keith Langan IN, KY, SW MI keith.langan@dreyfus.com Adam Pander adam.pander@dreyfus.com John Mussallem WI, N IL (excl. Chicago) mussallem.ja@dreyfus.com James Cromie james.cromie@dreyfus.com Roz Ratchford-Shook GA, N FL roz.ratchfordshook@dreyfus.com Adam Pander adam.pander@dreyfus.com Geoffrey Wilson AL, E TN, FL Panhandle geoffrey.wilson@dreyfus.com Open Open MI Michael P. Ryan michael.p.ryan@dreyfus.com

31 Dreyfus Investment Consultants West and Southwest WA OR CA NV ID UT AZ MT WY CO NM ND SD NE KS OK TX MN IA MO AR LA WI MI IL IN OH PA WV N VA KY S VA W TN E TN NC SC MS AL GA ME VT NY NH MA CT NJ RI DE MD Wash., DC Northeast Division Central and Southeast Division West and Southwest AK FL AK HI PR West and Southwest Sales Division Thomas J. Schmidt, Regional Director INVESTMENT PHONE INTERNAL PHONE CONSULTANT TERRITORY NUMBER CONSULTANT NUMBER Bria M. Gilbert N CA, OR bria.gilbert@dreyfus.com Connor Hartwell connor.hartwell@dreyfus.com 31 Aniello O Connor aniello.oconnor@dreyfus.com Terry Brown AZ, UT, S NV terry.brown@dreyfus.com Osei Millar osei.millar@dreyfus.com Kristin Cunningham S CA cunningham.k@dreyfus.com Matt Cunnane matthew.cunnane@dreyfus.com Brian D. Jones Los Angeles, CA, HI jones.b@dreyfus.com Ryan Bittner ryan.bittner@dreyfus.com Carolyn Lis San Francisco, CA carolyn.lis@dreyfus.com Stephen Bianco bianco.s@dreyfus.com Paul Raven N TX, OK paul.raven@dreyfus.com Brandon Pues brandon.pues@dreyfus.com Matthew G. Somers CO, NM, El Paso, TX somers.m@dreyfus.com Open Michael Theis WA, N ID theis.m@dreyfus.com Open Alex C. Tynan E. Houston, LA, AR, MS, Memphis, TN alex.tynan@dreyfus.com Brandon Pues brandon.pues@dreyfus.com Blake Vasquez Central CA vasquez.b@dreyfus.com Jesse Moreno jesse.moreno@dreyfus.com Open AK, MT, S ID, WY Open Open W Houston Open

32 BNY Mellon Investment Management is one of the world s leading investment management organizations and one of the top U.S. wealth managers, encompassing BNY Mellon s affiliated investment management firms, wealth management organization and global distribution companies. BNY Mellon is the corporate brand of The Bank of New York Mellon Corporation and may also be used as a generic term to reference the corporation as a whole or its various subsidiaries generally. Products and services may be provided under various brand names and in various countries by subsidiaries, affiliates and joint ventures of The Bank of New York Mellon Corporation where authorized and regulated as required within each jurisdiction. Rankings include assets managed by BNY Mellon s investment boutiques and BNY Mellon Wealth Management. Each ranking may not include the same mix of firms. Effective January 31, 2018, BNY Mellon Investment Management firms The Boston Company Asset Management, LLC ( TBCAM ) and Standish Mellon Asset Management Company, LLC ( Standish ) merged into BNY Mellon Investment Management firm Mellon Capital Management Corporation ( Mellon Capital ), which was renamed BNY Mellon Asset Management North America Corporation. Unless otherwise noted, all references to assets under management (which are approximate) are as of June 30, Assets under management (AUM)/overlay under management (OUM) for EACM Advisors and BNY Mellon Asset Management North America Corporation includes assets managed by those individual firms officers as associated persons, dual officers or employees of The Dreyfus Corporation. In addition, AUM/OUM for the following firms includes assets managed by the individual firms officers as dual officers or employees of The Bank of New York Mellon Corporation: The Dreyfus Corporation and its Dreyfus Cash Investment Strategies division, Newton Investment Management (North America) Limited and BNY Mellon Asset Management North America Corporation. Alcentra Limited, Insight Investment International Limited, Newton Investment Management (North America) Limited, Newton Investment Management Limited and Walter Scott & Partners Limited are authorized and regulated by the Financial Conduct Authority. The registered address for Alcentra Limited is 10 Gresham Street, London, EC2V 7JD, England. The registered address for Insight Investment International Limited and Newton is BNY Mellon Centre, 160 Queen Victoria Street, London, EC4V 4LA, England. The registered address for Walter Scott is One Charlotte Square, Edinburgh, EH2 4DR, Scotland. The Alcentra Group refers to the affiliated companies Alcentra, Ltd and Alcentra NY, LLC. AUM includes assets managed by both companies. Assets under management reflect assets of all accounts and portions of accounts managed by Alcentra for Alcentra and its affiliates. Specifically, certain assets under management reflect assets managed by Alcentra personnel as employees of BNY Mellon Asset Management North America Corporation, The Bank of New York Mellon Corporation and The Dreyfus Corporation under dual employee arrangement. BNY Mellon is not a guarantor of any investment managed by Alcentra. Insight Investment advisory services in North America are provided by Insight North America LLC (INA), a registered investment adviser under the Investment Advisers Act of 1940 and regulated by the U.S. Securities and Exchange Commission. INA is part of Insight or Insight Investment, the corporate brand for certain asset management companies operated by Insight Investment Management Limited including, among others, Insight Investment Management (Global) Limited, Insight Investment International Limited, Cutwater Asset Management Corp., and Cutwater Investor Services Corp. Insight s assets under management (AUM) are represented by the value of cash securities and other economic exposures, and are calculated on a gross notional basis. Figures shown in USD. FX rates as per WM Reuters 4pm spot rates. BNY Mellon Asset Management North America Corporation AUM includes discretionary and non-discretionary assets and assets managed by investment personnel acting as dual officers of affiliated entities. BNY Mellon Asset Management North America Corporation, Dreyfus and Alcentra are registered investment advisers. Dreyfus, Alcentra and The Bank of New York Mellon are wholly owned subsidiaries of The Bank of New York Mellon Corporation. BNY Mellon owns a majority of BNY Mellon Asset Management North America Corporation and the remainder is owned by employees of the firm. 32

33 Newton and/or the Newton Investment Management brand refers to the following group of affiliated companies: Newton Investment Management Limited, Newton Investment Management (North America) Limited (NIMNA Ltd) and Newton Investment Management (North America) LLC (NIMNA LLC). NIMNA LLC personnel are supervised persons of NIMNA Ltd and NIMNA LLC does not provide investment advice, all of which is conducted by NIMNA Ltd. NIMNA LLC and NIMNA Ltd are the only Newton companies to offer services in the U.S. In the UK, NIMNA Ltd is authorized and regulated by the Financial Conduct Authority in the conduct of investment business and is a wholly owned subsidiary of The Bank of New York Mellon Corporation. Assets under management include assets managed by all of these companies listed above except NIMNA LLC, which provides marketing services in the U.S. for NIMNA Ltd. Except for NIMNA LLC and NIMNA Ltd, none of the other Newton companies offer services in the U.S. or Canada. In addition, AUM for Newton may include nondiscretionary assets of wrap fee account(s) for which NIMNA Ltd provides sub-advisory services to the primary manager of the wrap program. BNY Mellon owns a 20% interest in Siguler Guff & Company, LP and certain related entities (including Siguler Guff Advisers, LLC). 33

34 RISKS Equities are subject to market, market sector, market liquidity, issuer, and investment style risks, to varying degrees. Investing in foreign denominated and/or domiciled securities involves special risks, including changes in currency exchange rates, political, economic, and social instability, limited company information, differing auditing and legal standards, and less market liquidity. These risks generally are greater with emerging market countries. American Depositary Receipts (ADRs) are certificates evidencing ownership of shares of a foreign-based issuer held in trust by a bank or similar financial institution. ADRs are alternatives to the purchase of the underlying securities in their original markets and currencies. ADRs are subject to many of the same risks as the foreign securities to which they relate. MBSC Securities Corporation ( MBSC ), through certain of its Dreyfus-branded divisions, sponsors or provides investment advisory or administrative services to various wrap programs. MBSC is a direct subsidiary of The Dreyfus Corporation ( Dreyfus ) and an indirect subsidiary of BNY Mellon. BNY Mellon is the corporate brand of The Bank of New York Mellon Corporation. Newton Investment Management provides certain investment management services to MBSC in connection with the strategies described in this presentation. BNY Mellon utilizes the Dreyfus brand as a distribution mark for certain investment management products for which it provides investment advisory or administrative services. 34

35 Learn More For more information, please call Dreyfus at

36 This material has been distributed for informational purposes only and should not be considered as investment advice or a recommendation of any particular investment, strategy, investment manager or account arrangement. Information contained herein has been obtained from sources believed to be reliable, but not guaranteed. Please consult a legal, tax or investment advisor in order to determine whether an investment product or service is appropriate for a particular situation. No part of this material may be reproduced in any form, or referred to in any other publication, without express written permission. The Dreyfus Corporation, Newton (the strategy's sub-adviser) and MBSC Securities Corporation are companies of BNY Mellon MBSC Securities Corporation, 225 Liberty Street, 19th Floor, New York, NY MARK DSA-NGEPRS