Dreyfus Launches BOLD® Future, Bringing the Power of BOLD to Retail Investors

Rhea-AI Summary

Dreyfus, part of BNY Mellon, has introduced BOLD® Future, a new share class for retail investors under the Dreyfus Government Cash Management fund.

The initiative will support Howard University's GRACE Grant by donating 10% of net revenue from this share class to a dedicated scholarship fund.

BOLD Future aims to cater to financial advisors and their clients with a minimum investment requirement of $25,000. This new offering follows strong demand from institutional investors for BOLD, which stands for Black Opportunity for Learning and Development.

The partnership underscores Dreyfus' commitment to social impact, having already donated over $1 million to Howard University.

BNY Mellon, a global financial services company, manages $48.8 trillion in assets under custody and $2.0 trillion in assets under management as of March 2024.

Positive

• Dreyfus launches BOLD® Future, expanding opportunities for retail investors.
• 10% of net revenue from BOLD Future will support Howard University's GRACE Grant.
• BOLD Future has a minimum investment requirement of $25,000, attracting serious investors.
• Dreyfus has donated over $1 million to Howard University, demonstrating strong social commitment.
• BNY Mellon manages $48.8 trillion in assets, indicating strong financial stability and expertise.

Negative

• The fund is not insured or guaranteed by the FDIC or any government agency.
• Investing in the fund carries a risk of losing money.
• The fund's sponsor is not legally obligated to provide financial support, creating potential risk for investors.
• Minimum investment of $25,000 may exclude smaller investors.
• Potential imposition of fees on the sale of shares with a 60-day notice could deter investors.

Insights

Financial Analyst

BOLD® Future represents a notable initiative in the market, especially for investors interested in social impact investments. From a financial perspective, the integration of social causes into investment portfolios has been growing in popularity, often referred to as ESG (Environmental, Social and Governance) investing. BNY Mellon’s new share class, which earmarks 10% of its net revenue towards scholarships, might attract retail investors who prioritize social responsibility alongside financial returns.

This initiative might enhance Dreyfus' brand reputation among socially conscious investors, potentially increasing fund inflows. For retail investors, the minimum investment of $25,000 is relatively high, which may limit participation to more affluent individuals or those genuinely committed to the cause. However, the lack of guarantees on fund preservation and the potential imposition of fees should be carefully considered. While the social benefits are clear, the financial performance of the fund in comparison to other money market funds will be a critical factor for investors.

Market Research Analyst

The launch of BOLD® Future aligns with a broader market trend towards impact investing. This sector has seen significant growth, as more investors seek to align their portfolios with their personal values. The partnership with Howard University could resonate strongly with communities that value educational support and equity, potentially expanding Dreyfus' customer base within these demographics.

Investors should note the competitive landscape of money market funds and consider how BOLD® Future stacks up in terms of returns and stability. The annual donation commitment, while admirable, is unique and could be a differentiating factor in marketing the fund. However, the fund's success will ultimately depend on its ability to deliver competitive returns while fulfilling its social promises.

BOLD^® Future offers retail clients the opportunity to make a social impact through Dreyfus' flagship money fund in partnership with Howard University

NEW YORK, June 5, 2024 /PRNewswire/ -- Dreyfus, BNY Mellon's affiliated liquidity manager, today announced the launch of BOLD^® Future, a new share class for retail investors of the Dreyfus Government Cash Management fund. Building on the demand from institutional investors for BOLD, which stands for Black Opportunity for Learning and Development, BOLD Future will support Howard University's Graduation, Retention, and Access to Continued Excellence (GRACE) Grant by making an annual donation of 10% of the net revenue¹ of the share class to a dedicated scholarship within the GRACE Grant. 

BOLD Future is designed to address the liquidity needs of financial advisors and their clients with an investment minimum of $25,000. BOLD Future is the latest innovation from Dreyfus in its 50^th year as a leading provider of liquidity solutions.

"As one of the largest and most trusted cash and liquidity managers, we're delighted to deepen our partnership with Howard University and applaud their ongoing commitment to helping the highest-need students graduate. We are proud to have donated over $1 million to Howard University's GRACE Grant, powered by the strong commitment of our institutional clients," said John Tobin, Chief Investment Officer at Dreyfus. "With the launch of BOLD Future, Dreyfus now offers financial advisors and their clients the same opportunity to make their money work harder by doing well and doing good."

"Our partnership with Dreyfus is a game changer in eliminating financial barriers for Howard University students so that they focus more on completing college degrees, excelling in their chosen fields and advancing a more just and equitable society," said Ben Vinson, III, PhD, President of Howard University. "Investing in the GRACE Grant not only strengthens retention and graduation rates, but also enables students to lead and succeed in making the world a better place for everyone. Our nation and the world stand to benefit from this type of transformative support as we move Howard forward toward maximum strength."

To learn more, visit: https://www.dreyfus.com/products/the-bold-shares.html.

BNY Mellon is a global financial services company that helps make money work for the world – managing it, moving it and keeping it safe. For 240 years we have partnered alongside our clients, putting our expertise and platforms to work to help them achieve their ambitions. Today we help over 90% of Fortune 100 companies and nearly all the top 100 banks globally access the money they need. We support governments in funding local projects and work with over 90% of the top 100 pension plans to safeguard investments for millions of individuals, and so much more. As of March 31, 2024, we oversee $48.8 trillion in assets under custody and/or administration and $2.0 trillion in assets under management.

BNY Mellon is the corporate brand of The Bank of New York Mellon Corporation (NYSE: BK). We are headquartered in New York City, employ over 50,000 people globally and have been named among Fortune's World's Most Admired Companies and Fast Company's Best Workplaces for Innovators. Additional information is available on www.bnymellon.com. Follow us on LinkedIn or visit our Newsroom for the latest company news.

BNY Mellon Investment Management is one of the world's largest asset managers, managing almost $2 trillion across a range of traditional and alternative assets through seven specialist investment firms – ARX, Dreyfus, Insight, Mellon, Newton, Siguler Guff, and Walter Scott. For more information: www.bnymellonim.com.

Dreyfus is one of the largest and trusted liquidity managers in the industry. Our strategies span major asset classes, including Treasury, US government and short duration fixed income. Investors can access our solutions in a variety of pooled vehicles, including domestic and offshore money market funds, an ultra-short income exchange-traded fund (ETF), and collective investment trusts (CITs). We also offer customized portfolio solutions, including separately managed accounts as well as private and white label options. With 50 years of history, we are committed to building intelligent, innovative liquidity solutions with our clients in mind. For more information please visit www.Dreyfus.com. 

Howard University, founded in 1867, is a private, research university that is comprised of 14 schools and colleges. Students pursue more than 140 programs of study leading to undergraduate, graduate and professional degrees. The University operates with a commitment to Excellence in Truth and Service and has produced one Schwarzman Scholar, three Marshall Scholars, four Rhodes Scholars, 12 Truman Scholars, 25 Pickering Fellows and more than 165 Fulbright recipients. Howard also produces more on-campus African American Ph.D. recipients than any other university in the United States. For more information on Howard University, visit www.howard.edu.

Investors should consider the investment objectives, risks, charges, and expenses of a mutual fund carefully before investing. Contact a financial professional or visit im.bnymellon.com to obtain a prospectus, or summary prospectus, if available, that contains this and other information about the fund, and read it carefully before investing.

You could lose money by investing in a money market fund. Although the fund seeks to preserve the value of your investment at $1.00 per share, it cannot guarantee it will do so. An investment in the fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. The fund's sponsor has no legal obligation to provide financial support to the fund, and you should not expect that the sponsor will provide financial support to the fund at any time. Although the fund's board has no current intention to impose a fee upon the sale of shares, the board reserves the ability to do so after providing at least 60 days prior written notice to shareholders.

The reference to BNY Mellon Investment Management's website is intended to allow investors public access to information regarding the Fund and does not, and is not intended to, incorporate the website in this release.

Dreyfus is a division of Mellon Investments Corporation, a subsidiary of The Bank of New York Mellon Corporation.

BNY Mellon Securities Corporation, distributor, 240 Greenwich Street, New York, NY 10286

This press release is qualified for issuance in the U.S. only and is for informational purposes only. It does not constitute an offer or solicitation of securities or investment services or an endorsement thereof in any jurisdiction or in any circumstance in which such offer or solicitation is unlawful or not authorized. This press release is issued by BNY Mellon Investment Management to members of the financial press and media and the information contained herein should not be construed as investment advice.

Media Contact
Sue Watt
Sue.Watt@bnymellon.com

¹ "Net revenue" represents the management fee paid by the Fund to BNY Mellon Investment Adviser after any fee waivers and/or expense reimbursements by BNYM Investment Adviser and less any revenue sharing payments made by BNYM Investment Adviser or its affiliates, with respect to the Fund's BOLD Future shares.

 

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SOURCE BNY Mellon

FAQ

What is Dreyfus BOLD® Future?

BOLD® Future is a new share class for retail investors under the Dreyfus Government Cash Management fund that supports Howard University's GRACE Grant.

How does BOLD Future support Howard University?

BOLD Future donates 10% of its net revenue to Howard University's GRACE Grant for scholarships.

What is the minimum investment requirement for BOLD Future?

The minimum investment requirement for BOLD Future is $25,000.

What are the risks of investing in BOLD Future?

Investing in BOLD Future carries a risk of losing money, and it is not insured or guaranteed by any government agency.

How much has Dreyfus donated to Howard University's GRACE Grant?

Dreyfus has donated over $1 million to Howard University's GRACE Grant.

What assets does BNY Mellon manage?

BNY Mellon manages $48.8 trillion in assets under custody and $2.0 trillion in assets under management as of March 2024.