Newton Investment Management appoints Ilga Haubelt as Head of Equity Opportunities

Newton Investment Management (Newton), part of BNY Mellon Investment Management, today announced the appointment of Ilga Haubelt as head of equity opportunities. Ilga will be based in London and will report to Newton’s chief investment officer, Curt Custard. She joins the firm in this newly created role on 4 November, 2019.

The appointment follows the formalisation of Newton’s 16-strong active equity team into two principal hubs – equity income and equity opportunities. In her new role, Ilga will lead and manage a 10-strong team who are responsible for all of Newton’s active equity strategies that are not managed on an income basis. These include its global, Asian, US, emerging, UK and European equity specialisms.

Ilga joins from Deka Investment, where she was head of global equities, overseeing a team of 23 people and assets of more than £12 billion. At Deka Investment, Ilga also managed the firm’s largest equity fund, generating substantial net inflows into Deka Investment’s global equity funds.

Ilga is a highly experienced equity portfolio manager and team leader, bringing skills which complement our strong equity opportunities team, as well as our pedigree in research and idea generation. We are looking forward to welcoming her to Newton.

Curt Custard, Chief Investment Officer at Newton Investment Management

Newton manages £23.5 billion of active equity mandates, as of 30 September, 2019. Equity opportunities accounts for £11.1 billion of these assets and the investment firm runs £12.3 billion in equity income. The investment process and the structure of the portfolio management teams of the strategies will not change.

Notes to editors:

Newton Investment Management Limited (NIM) is a London-based global investment management subsidiary of The Bank of New York Mellon Corporation. NIM and Newton Investment Management (North America) Limited (NIMNA) are authorised and regulated by the Financial Conduct Authority. NIMNA is also registered with the US Securities and Exchange Commission. Registered address, BNY Mellon Centre, 160 Queen Victoria Street, London, EC4V 4LA. Registered in England No. 01371973 (NIM) and No. 2675952 (NIMNA). With assets under management of £50.4 billion as at 30 September 2019, Newton IM provides investment products and services to a wide range of clients, including pension funds, charities, corporations and (via BNY Mellon) individuals. News and other information about Newton is available at www.newtonim.com and via Twitter: @NewtonIM.

BNY Mellon Investment Management is one of the world’s largest investment managers, and one of the top U.S. wealth managers, with US$1.9 trillion in assets under management as of September 30, 2019. The firm is built around delivering to investors a “best of both worlds” approach: the expertise and world-class capability of our individual investment managers, wedded to a global geographic footprint, and guided by an unshakable commitment to financial stewardship. BNY Mellon Investment Management encompasses BNY Mellon’s affiliated investment management firms, wealth management services and global distribution companies.

BNY Mellon Investment Management is a division of BNY Mellon, which has US$35.8 trillion in assets under custody and/or administration as of September 30, 2019. BNY Mellon can act as a single point of contact for clients looking to create, trade, hold, manage, service, distribute or restructure investments. BNY Mellon is the corporate brand of The Bank of New York Mellon Corporation (NYSE: BK). Additional information is available on www.bnymellon.com. Follow us on Twitter @BNYMellon or visit our newsroom at www.bnymellon.com/newsroom for the latest company news.

Unless otherwise specified herein, all information sourced by BNY Mellon as of 29 October, 2019. This press release is qualified for issuance in the UK and Europe and is for information 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 EMEA Limited (BNYMIM EMEA) to members of the financial press and media and the information contained herein should not be construed as investment advice. Registered office of BNYMIM EMEA: BNY Mellon Centre, 160 Queen Victoria Street, London, EC4V 4LA. Registered in England no. 1118580. Authorized and regulated by the Financial Conduct Authority. A BNY Mellon Company.

Newton Investment Management (Newton), part of BNY Mellon Investment Management, today announces the expansion of its responsible investment team with the appointment of Andrew Parry as head of sustainable investment. He joins on 14 October, 2019. 

Andrew brings with him extensive responsible and sustainable investment expertise as Newton continues to advance its long-standing capabilities in these areas. He will play an integral role in growing the firm’s sustainable business, as well as overseeing its sustainable strategies, and communicating the firm’s approach to responsible investment to its global client base.

Based in London, he will report to Curt Custard, chief investment officer at Newton.

Andrew joins from Hermes Investment Management, where he was most recently head of sustainable investing, developing the firm’s impact investing capabilities, and aligning its funds to the UN Sustainable Development Goals. He previously held roles as head of equities and impact investing at Hermes, and before this as CEO of Hermes Sourcecap Limited. Andrew has over 30 years of equity investment expertise, having also held roles as CIO of global equities at Northern Trust Global Investments, head of equities at Julius Baer Investment Management, CIO of Lazard Brothers Asset Managers, and head of UK equities at Barings.

Commenting on the appointment, Curt Custard, chief investment officer at Newton Investment Management, said: “Andrew’s hire underpins the strategic importance and commitment that Newton places on responsible and sustainable investment. We have a long track record and heritage embedding ESG across our investment strategies and in developing leading responsible investment capabilities, having been evolving our approach since inception in 1978. Andrew’s experience in responsible and sustainable investment will be hugely valuable as we continue to develop our offering in response to our clients’ needs.”

Andrew’s hire underpins the strategic importance and commitment that Newton places on responsible and sustainable investment. We have a long track record and heritage embedding ESG across our investment strategies and in developing leading responsible investment capabilities, having been evolving our approach since inception in 1978. Andrew’s experience in responsible and sustainable investment will be hugely valuable as we continue to develop our offering in response to our clients’ needs.

Curt Custard, chief investment officer

Newton Investment Management manages £3.3 billion on a sustainable or ethical basis, as of 31 August, 2019.

Notes to editors:

Newton Investment Management Limited (NIM) is a London-based global investment management subsidiary of The Bank of New York Mellon Corporation. NIM and Newton Investment Management (North America) Limited (NIMNA) are authorised and regulated by the Financial Conduct Authority. NIMNA is also registered with the US Securities and Exchange Commission. Registered address, BNY Mellon Centre, 160 Queen Victoria Street, London, EC4V 4LA. Registered in England No. 01371973 (NIM) and No. 2675952 (NIMNA).

With assets under management of £50.1 billion as at 30 June 2019, Newton IM provides investment products and services to a wide range of clients, including pension funds, charities, corporations and (via BNY Mellon) individuals. News and other information about Newton is available at www.newtonim.com and via Twitter: @NewtonIM.

BNY Mellon Investment Management is one of the world’s largest investment managers, and one of the top U.S. wealth managers, with US$1.8 trillion in assets under management as of June 30, 2019. The firm is built around delivering to investors a “best of both worlds” approach: the expertise and world-class capability of our individual investment managers, wedded to a global geographic footprint, and guided by an unshakable commitment to financial stewardship. BNY Mellon Investment Management encompasses BNY Mellon’s affiliated investment management firms, wealth management services and global distribution companies.

BNY Mellon Investment Management is a division of BNY Mellon, which has US$35.5 trillion in assets under custody and/or administration as of June 30, 2019. BNY Mellon can act as a single point of contact for clients looking to create, trade, hold, manage, service, distribute or restructure investments. BNY Mellon is the corporate brand of The Bank of New York Mellon Corporation (NYSE: BK). Additional information is available on www.bnymellon.com. Follow us on Twitter @BNYMellon or visit our newsroom at www.bnymellon.com/newsroom for the latest company news.Unless otherwise specified herein, all information sourced by BNY Mellon as of September 26, 2019. This press release is qualified for issuance in the UK and Europe and is for information 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 EMEA Limited (BNYMIM EMEA) to members of the financial press and media and the information contained herein should not be construed as investment advice. Registered office of BNYMIM EMEA: BNY Mellon Centre, 160 Queen Victoria Street, London, EC4V 4LA. Registered in England no. 1118580. Authorized and regulated by the Financial Conduct Authority. A BNY Mellon Company.

Recent political events across much of the developed world have signalled an end to the policy consensus that has existed for most of the last 30 years. The free-market liberalism which took hold in the US and UK in the early 1980s, and subsequently across much of the developed and emerging world, heralded a period of economic stability and globalisation, which has been characterised by the free movement of capital, labour and trade.

Globalisation has, in aggregate, led to economic gains, and has created many winners. A wide range of developing economies have benefitted from increased trade, with countries such as China exporting cheaper goods to the West, resulting in millions being lifted out of poverty and the emergence of a growing middle class. Consumers in developed markets have also gained from cheaper, imported products and from increased choice and competition.

However, there have been losers too. Most notably, many jobs in developed economies have been lost and transferred to lower-cost countries. In other cases, middle-class workers have seen their pay stagnate for years, often with the perceived threat of jobs being exported to the developing world. Workers have also faced the challenge of technological disruption, with many traditional jobs at risk in sectors such as retail as businesses move online. Such an environment has led to wage deflation: taking the UK as an example, the chart below highlights that while the country’s GDP has risen over the last 20 years, wages have fallen in real terms, with average wages lower than they were 20 years ago.

UK wages as percentage of GDP vs nominal GDP

Source: Bloomberg, Office of National Statistics, Newton, February 2019


In the US, while unemployment may be at its lowest rate for 50 years, the low-paid nature of numerous positions means that many individuals are struggling to make ends meet. According to the US Census Bureau, over 50% of under-18s live in a household receiving welfare payments.1 This is reflected by data which shows that the US corporate sector’s contribution to the country’s economy (measured by after-tax profits) has risen to record highs over the last 20 years, while employee compensation’s share has significantly declined.2

The crisis effect

The aftermath of the 2008 global financial crisis has reinforced the trends which had already been developing over the previous two decades. Extraordinarily loose monetary policy such as quantitative easing has driven asset prices higher. However, this price inflation has been concentrated in financial assets, and so those people with assets have seen their wealth inflated, while those without such assets have seen them become often unaffordable. With the great bulk of financial assets owned by the few (a study suggests that 84% of US stock-market wealth is owned by 10% of the population3), the result has been an increase in inequality.

Total return performance in local currency since January 2009

For illustrative purposes only. Source: Bloomberg, March 2019.


In addition, while profits have soared once again, wages have stayed low and public services have been cut, while governments have made little headway in tackling the effects of longer-term structural challenges facing their economies, such as the debt mountain, ageing demographics, and technological disruption. With austerity a near-permanent feature in recent years for many countries, it is perhaps unsurprising that more extreme politics have begun to attract growing support.

The inexorable rise in populism

A series of events over the last five years have defined the continuing surge in populist movements. One of these was the election of Donald Trump as US president, and his administration’s subsequent protectionist policies which have included the trade dispute with China. However, the majority of these developments have taken place in Europe, where the overall populist vote share has risen from 7% in 1998 to over 25% in 2018.4 Significant events in Europe have included the UK’s 2016 vote to leave the European Union, the formation of a populist government in Italy following an indecisive election result in March 2018, and, most recently, the ‘gilets jaunes’ protests on the streets of France.

Such developments indicate to us that we may be entering a new ‘post-globalisation’ era, which is likely to look very from different from the previous 30 years. In particular, history suggests that populist policies result in fiscal expansion, as governments are forced to consider radical new means of empowering their citizens. This can lead to inflationary pressures, higher debt (leading to higher bond yields) and, ultimately, an economic slowdown, as occurred in the UK in the 1970s. There is also a growing wave of support for what is being described as ‘modern monetary theory’ (MMT) or ‘helicopter money’. This centres on a belief that, as a government owns its currency, it can essentially run an infinite deficit to fund whatever it desires, because a public-sector deficit has always resulted in a private-sector surplus. However, such a policy could only work if central banks maintained interest rates at a very low level without sparking inflation.

From an investment perspective, this new era is likely to be very different from the previous 30 years. The global economic uncertainty index indicates that such uncertainty is now higher than at the height of the global financial crisis,5 and, with the potential for further populist developments, it is likely that volatility will remain elevated. Furthermore, correlations between equities and bonds may continue to break down. Historically, this relationship has tended to see bonds perform better when equity markets have taken a dive and vice versa, acting as an important diversifier for multi-asset portfolios. However, in a more inflationary environment, there is potential for both asset classes to be weaker: inflation will naturally eat into fixed-income returns, but rising yields can also make the stocks of those companies with higher debt look less attractive compared with ‘safer’ securities. In such an environment, ‘growth’ stocks, which have driven much of the stock-market gains over recent years, may be less favoured, with ‘value’ equities making a comeback.

While the stimulus of recent years may have helped a rising tide to raise all boats, we believe we may now be entering a financial regime that is very different from the world we have become used to. In seeking to navigate this uncertain environment, we believe the importance of an active, flexible portfolio, with an eye to capital preservation, is likely to come to the fore.

1 Source: US Census Bureau, 2017
2 Source: Bloomberg, CPA London, March 2019
3 Household wealth trends in the United States, 1962 to 2016: Has middle class wealth recovered?, Edward N Wolff, National Bureau of Economic Research working paper 24085, November 2017
4 https://www.theguardian.com/world/ng-interactive/2018/nov/20/revealed-one-in-four-europeans-vote-populist
5 Source: http://www.policyuncertainty.com/, August 2019