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BNY Mellon NY AMT-Free Municipal Bond Z Overview

BNY Mellon NY AMT-Free Municipal Bond Z (DNYAX) is an actively managed Municipal Bond Muni New York Intermediate fund. BNY Mellon launched the fund in 2024.

The investment seeks to maximize current income exempt from federal, New York State and New York City income taxes to the extent consistent with the preservation of capital. The fund normally invests at least 80% of its net assets, plus any borrowings for investment purposes, in municipal bonds that provide income exempt from federal, New York State and New York City income taxes and the federal alternative minimum tax. It invests at least 70% of its assets in municipal bonds rated, at the time of purchase, investment grade or the unrated equivalent as determined by the fund's sub-adviser. The fund is non-diversified.

About BNY Mellon NY AMT-Free Municipal Bond Z (DNYAX)

There are 2 members of the management team with an average tenure of 8.46 years: Jeffrey Burger (2026), Thomas Casey (2009). Management tenure is more important for actively managed funds than passive index funds.

The fund has 1 primary benchmark: Bloomberg Municipal TR USD index with a weighting of 100%. BNY Mellon NY AMT-Free Municipal Bond Z has 231 securities in its portfolio. The top 10 holdings constitute 17.0% of the fund’s assets. The fund meets the SEC requirement of being classified as a nondiversified fund. The fund is not considered to have an ESG focus with its investment selection and management.

BNY Mellon NY AMT-Free Municipal Bond Z is part of the Fixed Income global asset class and is within the Municipal Bond fund group. BNY Mellon NY AMT-Free Municipal Bond Z has 0.8% of its portfolio invested in foreign issues. The overall assets allocated to domestic stock is 0.0%. There is 0.0% allocated to foreign stock, and 0.0% is allocated to preferred stocks. The bond allocation as a percentage of total assets is 100.0% (99.2% domestic bond, 0.8% foreign bond and 0.0% convertible bond). BNY Mellon NY AMT-Free Municipal Bond Z has 0.0% of the portfolio in cash.

Assets Under Management

The fund has $607 million in total assets, which is above the $106 million average for the Muni New York Intermediate category. Normally, lower assets under management translates to higher average expense ratios, and greater total assets are desired. However, for some investment categories, such as small-cap investing, it may be difficult for the manager to fully employ the desired active strategy if assets grow too large or too quickly.

DNYAX Performance and Fees

The expense ratio measures how much of a fund’s assets are used for administrative expenses and operating expenses, including adviser fees and fees for the transfer agent and custodial services. The BNY Mellon NY AMT-Free Municipal Bond Z expense ratio is above average compared to funds in the Muni New York Intermediate category. BNY Mellon NY AMT-Free Municipal Bond Z has an expense ratio of 0.62%, which is 19% lower than its category average, making the fund expense ratio grade a C. While it is difficult to predict returns, it is known that high annual expense ratios reduce your rate of return, and excessive fees are difficult to overcome. Active management normally comes with higher expense ratios than passive index management. Certain investment categories such as small company and foreign also normally have higher expense ratios. It is best to compare fund expense ratios against the category averages for meaningful assessments.

High portfolio turnover can translate to higher expenses and lower aftertax returns. BNY Mellon NY AMT-Free Municipal Bond Z has a portfolio turnover rate of 16%, indicating that holds its assets around 0.1 years. By way of comparison, the average portfolio turnover is 19% for the Muni New York Intermediate category.

Recently, in the month of June 2026, BNY Mellon NY AMT-Free Municipal Bond Z returned 1.0%, which earned it a grade of A, as the Muni New York Intermediate category had an average return of 0.7%. The letter grades of A, B, C, D and F are based upon relative rankings within the investment category. A grade of A, for example, would indicate that the return is in the highest 20% for that time period compared to all funds in that category.

BNY Mellon NY AMT-Free Municipal Bond Z has a trailing yield of 3.16%, which is above the 2.87% category average. The fund normally distributes its income monthly and its capital gains annually.

It’s natural to seek the best-performing investments, but you must consider the relationship between risk and return and the impact of costs and taxes on your realized returns.

BNY Mellon NY AMT-Free Municipal Bond Z Grades

Year to date, the fund has returned 2.8%, 0.8 percentage points better than the category, which translates into a grade of A. The fund has returned 7.4% over the past year (grade of A), 3.5% over the past three years (grade of B) and 0.5% per year over the past five years (grade of D) and 1.5% per year over the past 10 years (grade of C).

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