40-17F2: BNY Mellon High Yield Strategies Fund Complies with Investment Company Act Requirements

An independent audit confirms that BNY Mellon High Yield Strategies Fund met the custody requirements of the Investment Company Act of 1940 as of March 31, 2024.

Summary

• KPMG LLP conducted an examination of BNY Mellon High Yield Strategies Fund's compliance with specific custody requirements of the Investment Company Act of 1940.
• The examination covered the period from July 31, 2023, to March 31, 2024.
• The audit included procedures such as counting and inspecting securities, confirming holdings with custodians, and reconciling security positions.
• The audit also reviewed the reconciliation of the Fund's securities records with those of the custodian.
• KPMG reviewed the BNY Mellon Asset Servicing Custody and Securities Lending Services Service Organization Control Report (SOC 1 Report) and found no relevant issues.
• Management asserted that the Fund complied with the requirements of subsections (b) and (c) of Rule 17f-2 of the Investment Company Act of 1940 as of March 31, 2024.
• KPMG issued an opinion that management's assertion is fairly stated in all material respects.

Sentiment

Score: 8

Explanation: The document indicates a successful compliance audit, which is a positive sign for investors and stakeholders. The lack of negative findings and the confirmation of management's assertion contribute to a positive sentiment.

Positives

• The independent audit by KPMG provides assurance that the fund is adhering to regulatory requirements.
• The fund's internal controls over compliance were deemed effective.
• No material issues were identified during the audit period.

Risks

• The report is solely for the use of management, the Board of Trustees, and the SEC, and should not be relied upon by other parties.
• The audit does not provide a legal determination on the Fund's compliance.

Management Comments

• Management asserts that the Fund was in compliance with the requirements of subsections (b) and (c) of Rule 17f-2 of the Investment Company Act of 1940 as of March 31, 2024, and from July 31, 2023 through March 31, 2024.

Industry Context

This report is a standard compliance audit for investment funds, ensuring they adhere to regulatory requirements for the safekeeping of assets.

Comparison to Industry Standards

• The audit procedures performed by KPMG are consistent with industry standards for investment company audits.
• The use of SOC 1 reports to assess the custodian's internal controls is a common practice.
• The scope of the audit, covering security counts, confirmations, and reconciliations, aligns with typical regulatory requirements for investment funds.

Stakeholder Impact

• The audit provides assurance to shareholders that the fund's assets are being properly safeguarded.
• The report demonstrates the fund's commitment to regulatory compliance.

Key Dates

Keywords

Investment Company Act of 1940, Rule 17f-2, Custody of Investments, Compliance, Audit, KPMG, BNY Mellon High Yield Strategies Fund, Securities, Custodian, SOC 1 Report