LONDON, 2 May, 2008 — Europe's large cap laggards, companies regarded as conservative and boring, are destined to be the benefactors of the post credit crunch environment, says Rajesh Shant, manager of the Newton European Higher Income Fund.

Shant says: "Since the turn of the century, small caps have outperformed large caps every single year until 2007, the first year of large cap outperformance. The tide has just begun to turn.

He adds: "The large cap parts of the market have de-rated in relative and absolute terms over the past few years. These so called 'boring' companies have been left behind as a flurry of private equity activity and cheap debt forced up valuations of smaller companies. Looking ahead, companies with strong balance sheets, cash flows and earnings will be well positioned to exploit weaknesses of their smaller counterparts and pick up market share."

Newton's European Equities team currently sees opportunities in the energy supply and medical technology sectors.

"Energy supply, oil and pharmaceutical companies are representing terrific value, with strong cash flows and good dividend yields. These so called boring companies are well positioned to weather an economic storm," Shant concludes.

Since launch in January 2007, the Fund has made an active investment decision to hold 'large cap laggards' due to their economic resilience and ability to generate strong cash flows and dividend yields.

The Newton European Higher Income Fund is an unconstrained portfolio investing in European securities and aims for increasing annual distributions with long term capital growth.

Newton Investment Management Limited is a London-based global asset management subsidiary of The Bank of New York Mellon Corporation and part of BNY Mellon Asset Management. With assets under management of more than £38 billion, the company provides a broad range of award-winning investment products and services to individuals, pension funds, charities and corporations. News and other information about Newton is available at www.newton.co.uk.

The Bank of New York Mellon Corporation is a global financial services company focused on helping clients manage and service their financial assets, operating in 34 countries and serving more than 100 markets. The company is a leading provider of financial services for institutions, corporations and high-net-worth individuals, providing superior asset management and wealth management, asset servicing, issuer services, clearing services and treasury services through a worldwide client-focused team. It has more than $23 trillion in assets under custody and administration, more than $1.1 trillion in assets under management and services $12 trillion in outstanding debt. Additional information is available at www.bnymellon.com.

Newton European Higher Income Fund is a sub-fund of BNY Mellon Investment Funds, an Investment Company with Variable Capital (ICVC) incorporated in England and Wales under registered number IC27 and authorised by the Financial Services Authority. BNY Mellon Fund Managers Limited (BNYMFM) is the Authorised Corporate Director. BNY Mellon Fund Managers Limited, 160 Queen Victoria Street, London EC4V 4LA. Registered in England No. 1998251 Authorised and regulated by the Financial Services Authority. The investment adviser of the Newton sub-funds is Newton Investment Management Limited (NIM).

All information source BNY Mellon Asset Management International Limited as at 31 March 2008. This press release is issued by BNY Mellon Asset Management International Limited to members of the financial press and media and the information contained herein should not be construed as investment advice. Not available or offered to U.S. investors. Past performance is not a guide to future performance. Registered office: The Bank of New York Mellon Centre, 160 Queen Victoria Street, London, EC4V 4LA. Registered in England no. 1118580. Authorised and regulated by the Financial Services Authority.
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