The site you are about to enter is intended for Australian wholesale clients only (as that term is defined in section 761G of the Corporations Act 2001 (Cth)) and is not intended for distribution to, nor should it be relied upon by, retail clients. Newton Investment Management Limited (Newton) is authorised and regulated in the UK by the Financial Conduct Authority (FCA). Newton is providing financial services to wholesale clients in Australia in reliance on ASIC Corporations (Repeal and Transitional) Instrument 2016/396, a copy of which is on the website of the Australian Securities and Investments Commission, www.asic.gov.au. The Instrument exempts entities that are authorised and regulated in the UK by the FCA, such as Newton, from the need to hold an Australian financial services license under the Corporations Act 2001 for certain financial services provided to Australian wholesale clients on certain conditions. Financial services provided by Newton are regulated by the FCA under the laws and regulatory requirements of the United Kingdom, which are different to the laws applying in Australia. This information is made available by Newton Investment Management Limited and BNY Mellon Investment Management Australia Ltd (AFSL 227865).
Unearthing potential opportunities. Highlighting possible risks.
Exploring our thematic approach
At Newton, we believe there are certain key factors that will be instrumental in shaping the investment landscape over the coming years.
As investors, it is our job to cut through the noise and make sure that we spend our time focusing on these factors, as we believe this puts us in the best position to identify opportunities and manage risks.
We capture these ideas in a number of investment themes, which are then used by our strategies to inform stock selection.
Thematic investing: what it is and how we do it
We explain how we currently use themes in our investment approach.
We use nine core themes: net effects, smart revolution, Earth matters, financialisation, state intervention, China influence, consumer power, population dynamics and healthy demand. We see these themes, which include the disruption from technological change, the increasing power of consumers, the impact of climate change, and the influence of China, as indicative of long-term, structural trends that are likely to persist for some time.
Why do themes matter?
In seeking to decipher opportunities from risks, investors have a very large universe to look at, and it is unrealistic for an investment manager to analyse the whole of it (and the almost infinite influences upon it). It is easy to get distracted by short-term noise, worrying about what the market will do week to week, or even day to day.
Instead, we want to consider the trends that will shape the world of investment, and avoid being distracted by market noise. Our themes are therefore intended to provide perspective and allow our global research analysts and portfolio managers to focus their time on the areas of greatest importance. They:
• represent the first stages of idea generation and risk management • identify drivers of long-term, structural change • provide a dynamic framework for investment thinking • afford a longer-term global perspective on a volatile world
How do we use themes?
Themes are used throughout our investment process, facilitating both our top-down and bottom-up idea-generation process. From initial, high-level research prioritisation to portfolio construction, themes play an essential part in helping to shape our investment outlook and positioning. Employing themes in our investment process not only alerts us to potential opportunities, but also serves to highlight possible risks.
Our nine core themes
To find out more about each theme in detail, and the ideas within these core themes that we are currently focusing on, please click on the icons below.
The evolution of our themes
Of course, our themes are not fixed areas of focus. As the world evolves, our core investment themes evolve too. The graphic below shows how our themes have developed over the years to result in the nine we consider today.
Thematic investing: what it is and how we do it
Our new paper reveals the most common questions our clients ask us about thematic investing……and the answers.
What is a theme?
Why do themes exist, and how do we know they exist?
Individual Investors will be redirected to bnymellon.com
This is a financial promotion. Issued by Newton Investment Management Limited, The Bank of New York Mellon Centre, 160 Queen Victoria Street, London, EC4V 4LA. Registered in England No. 01371973. Newton Investment Management is authorised and regulated by the Financial Conduct Authority, 12 Endeavour Square, London, E20 1JN and is a subsidiary of The Bank of New York Mellon Corporation. Newton is providing financial services to wholesale clients in Australia in reliance on ASIC Class Order 03/1099, a copy of which is on the website of the Australian Securities and Investments Commission, www.asic.gov.au. The Class Order exempts entities that are authorised and regulated in the UK by the FCA, such as Newton, from the need to hold an Australian financial services license under the Corporations Act 2001 for certain financial services provided to Australian wholesale clients on certain conditions. Financial services provided by Newton are regulated by the FCA under the laws and regulatory requirements of the United Kingdom, which are different to the laws applying in Australia.
Material in this publication is for general information only. The opinions expressed in this document are those of Newton and should not be construed as investment advice or recommendations for any purchase or sale of any specific security or commodity. Certain information contained herein is based on outside sources believed to be reliable, but its accuracy is not guaranteed. You should consult your advisor to determine whether any particular investment strategy is appropriate. This material is for institutional investors only. Past performance is not a guide to future performance. Your capital may be at risk. The value of investments and the income from them can fall as well as rise and investors may not get back the original amount invested.
This material is for Australian wholesale clients only and is not intended for distribution to, nor should it be relied upon by, retail clients. This information has not been prepared to take into account the investment objectives, financial objectives or particular needs of any particular person. Before making an investment decision you should carefully consider, with or without the assistance of a financial adviser, whether such an investment strategy is appropriate in light of your particular investment needs, objectives and financial circumstances.
This information is made available by Newton and BNY Mellon Investment Management Australia Ltd (AFSL 227865). This information is confidential and is only provided to Australian wholesale clients (as that term is defined in section 761G of the Corporations Act 2001 (Cth)). This is not an offering or the solicitation of an offer to purchase an interest in any financial product referred to in this website. This content is for general purposes only and should not be relied upon as financial product advice. This content has been prepared without taking into account the objectives, financial situation or needs of any person. Before making an investment decision an investor should consider the appropriateness of the information in this website having regard to these matters and read the disclosure document relating to a financial product. Investors should also consider obtaining independent advice before making any investment decisions. Investments can go up and down and to the extent that this website contains any past performance information, past performance is not a reliable indicator of the future performance of the relevant investment or any similar investment strategy.
Newton Investment Management Limited is exempt from the requirement to hold an Australian financial services licence in respect of the financial services it provides to wholesale clients in Australia and is authorised and regulated by the Financial Conduct Authority of the UK under UK laws, which differ from Australian laws.