CORRESP 1 filename1.htm

 

  Proskauer Rose LLP     Eleven Times Square     New York, NY 10036-8299

 

 

 

September 21, 2021

 

VIA EDGAR

 

Securities and Exchange Commission

100 F Street, N.E.

Washington, D.C. 20549

Attention: John Kernan

Re:Funds Listed in Appendix A

 

Dear Mr. Kernan:

 

On behalf of the funds listed in Appendix A hereto (each, a “Fund”), transmitted for filing as EDGAR correspondence are the Funds’ responses to the comments of the accounting staff (the “Staff”) of the Securities and Exchange Commission (the “Commission”), provided by you to me and Lisa Goldstein by telephone on August 27, 2021. The Staff’s comments related to (i) the diversification status of certain of the Funds, described in the Funds’ annual reports on Form N-CSR as filed with the Commission and (ii) a Fund’s filings on Form N-MFP with respect of its compliance with Rule 30b1-7 under the Investment Company Act of 1940, as amended (the “1940 Act”).

 

Set forth below is a summary of the Staff’s comments, and the Funds’ responses thereto.

 

Diversification Status of Certain Funds

 

Comment 1: BNY Mellon Global Fixed Income Fund, BNY Mellon Dynamic Total Return Fund and BNY Mellon Global Dynamic Bond Income Fund have been identified in the annual reports as non-diversified funds; however, it appears the funds are operating as diversified funds. If the funds have been operating as diversified funds for more than three years, please confirm that the funds will receive shareholder approval prior to changing their status back to non-diversified.

 

Response 1: Fund management is aware that these Funds are now de facto diversified and would be required to obtain shareholder approval prior to operating as a “non-diversified company,” if they elected to do so in the future. Fund management will remove the “Non-diversification risk” section and other references to being a non-diversified fund from each of these Funds’ registration statement at the next annual update of the Fund’s registration statement. Each of these Funds will also disclose in the next annual update of its registration statement the following diversification restriction as a fundamental policy: “With respect to 75% of its total assets, purchase securities of an issuer (other than the U.S. Government, its agencies, instrumentalities or authorities or repurchase agreements collateralized by U.S. Government securities and other investment companies), if: (a) such purchase would cause more than 5% of the fund’s total assets taken at market value to be invested in the securities of such issuer; or (b) such purchase would at the time result in more than 10% of the outstanding voting securities of such issuer being held by the fund”.

 

 

 

 

 

N-MFP Filings:

 

Comment 2: The Staff observes that, in N-MFP filings, including the filing coinciding with its fiscal year-end, under Item C.8.h., BNY Mellon Government Money Market Fund appears to have repurchase agreement collateral classified incorrectly. Collateral for a $55 million Bank of Montreal repurchase agreement dated December 31, 2020 due January 4, 2021 was classified as “Agency Debentures and Agency Strips” when “Agency Collateralized Mortgage Obligations” or “Agency Mortgage-Backed Securities” appear to be more appropriate classifications. Please ensure the prospective accuracy of repurchase agreement collateral classifications in Item C.8.h. of Form M-NFP.

 

Response 2: Going forward, each Fund will ensure the accuracy of its repurchase agreement collateral classifications in Item C.8.h. of Form M-NFP.

 

*    *    *    *    *

 

Should you have any questions or comments, please feel free to contact me at 212.969.3151 (dkasinki@proskauer.com) or Lisa P. Goldstein at 617.526.9845 (lgoldstein@proskauer.com).

 

Very truly yours,

 

 

/s/ Devin J. Kasinki
Devin J. Kasinki

 

cc:David Stephens

Lisa P. Goldstein

 

 

 

 

APPENDIX A

 

CIK   File #   Registrant Name   Series ID   Series Name
0000053808   811-00524   BNY Mellon Investment Funds III   S000018029   BNY Mellon Global Equity Income Fund
0000053808   811-00524   BNY Mellon Investment Funds III   S000005159   BNY Mellon International Bond Fund
0000053808   811-00524   BNY Mellon Investment Funds III   S000000317   BNY Mellon High Yield Fund
0000799295   811-04813   BNY Mellon Investment Funds I   S000011353   BNY Mellon Diversified Emerging Markets Fund
0000799295   811-04813   BNY Mellon Investment Funds I   S000011667   BNY Mellon Tax Sensitive Total Return Bond Fund
0000799295   811-04813   BNY Mellon Investment Funds I   S000011516   BNY Mellon Small Cap Value Fund
0000799295   811-04813   BNY Mellon Investment Funds I   S000011515   BNY Mellon Small Cap Growth Fund
0000799295   811-04813   BNY Mellon Investment Funds I   S000011511   BNY Mellon International Equity Fund
0000799295   811-04813   BNY Mellon Investment Funds I   S000011502   BNY Mellon Global Fixed Income Fund
0000799295   811-04813   BNY Mellon Investment Funds I   S000011499   BNY Mellon Small/Mid Cap Growth Fund
0000810305   811-05021   BNY Mellon Short-Intermediate Municipal Bond Fund   S000000094   BNY Mellon Short-Intermediate Municipal Bond Fund
0000813383   811-05125   BNY Mellon Variable Investment Fund   S000001924   Quality Bond Portfolio
0000813383   811-05125   BNY Mellon Variable Investment Fund   S000001923   Government Money Market Portfolio
0000813383   811-05125   BNY Mellon Variable Investment Fund   S000001921   International Value Portfolio
0000813383   811-05125   BNY Mellon Variable Investment Fund   S000001920   International Equity Portfolio
0000813383   811-05125   BNY Mellon Variable Investment Fund   S000001919   Growth and Income Portfolio
0000813383   811-05125   BNY Mellon Variable Investment Fund   S000001917   Opportunistic Small Cap Portfolio
0000813383   811-05125   BNY Mellon Variable Investment Fund   S000001912   Appreciation Portfolio
0000846800   811-05719   BNY Mellon Stock Index Fund, Inc.   S000001911   BNY Mellon Stock Index Fund, Inc.
0000890064   811-07044   BNY Mellon Sustainable U.S. Equity Portfolio, Inc.   S000001910   BNY Mellon Sustainable U.S. Equity Portfolio, Inc.
0000914775   811-07123   BNY Mellon Advantage Funds, Inc.   S000059726   BNY Mellon Sustainable Balanced Fund
0000914775   811-07123   BNY Mellon Advantage Funds, Inc.   S000031204   BNY Mellon Global Dynamic Bond Income Fund
0000914775   811-07123   BNY Mellon Advantage Funds, Inc.   S000028808   BNY Mellon Global Real Return Fund
0000914775   811-07123   BNY Mellon Advantage Funds, Inc.   S000011967   BNY Mellon Dynamic Total Return Fund
0001056707   811-08673   BNY Mellon Investment Portfolios   S000002781   Technology Growth Portfolio
0001056707   811-08673   BNY Mellon Investment Portfolios   S000002780   Small Cap Stock Index Portfolio
0001056707   811-08673   BNY Mellon Investment Portfolios   S000002779   Midcap Stock Portfolio
0001056707   811-08673   BNY Mellon Investment Portfolios   S000002774   Core Value Portfolio
0001057861   811-08703   BNY Mellon High Yield Strategies Fund   CEF0000589   BNY Mellon High Yield Strategies Fund
0001627854   811-23014   BNY Mellon Alcentra Global Credit Income 2024 Target Term Fund, Inc.   CEF0001709   BNY Mellon Alcentra Global Credit Income 2024 Target Term Fund, Inc.
0001635295   811-23036   BNY Mellon Absolute Insight Funds, Inc.   S000059721   BNY Mellon Core Plus Fund