Our philosophy and process

  • The strategy seeks to invest in companies that are well governed and run for the benefit of all shareholders. It can also invest a proportion of assets in developed-market companies where business is driven by emerging-market operations.
  • ESG considerations are integrated throughout the research process and via proprietary quality reviews, to ensure that any material issues are captured.
  • The strategy has a long-term investment horizon. It focuses on balance-sheet strength and return-on-capital metrics.

Every time we consider a security or look at an industry or country, it’s in the context of what’s happening across the world. We believe the investment landscape is shaped over the long term by some key trends, and we use a range of global investment themes to capture these.

Earth matters

Environmental factors are high up the political agenda and provide areas of opportunity as well as risk. Governments are under pressure to respond but this can be expensive, despite advancements in technology. ‘Earth matters’ looks at these issues.

China influence

The influence of China on the world has grown exponentially but its economy looks increasingly risky. ‘China influence’ looks at how the country’s development affects the investment outlook beyond its borders.1

1 Compared to more established economies, the value of investments in emerging markets may be subject to greater volatility owing to differences in generally accepted accounting principles or from economic or political instability or less developed market practices.

State intervention

Authorities have engaged in ever-greater policy intervention and regulation to shore up economic growth. We believe ‘state intervention’ has increased misallocation of capital, caused volatility in markets and inflated asset prices – and we think that calls for a stock-specific approach.

Smart revolution

Machines and networks are becoming more intelligent. This is disrupting the labour market, as machines increasingly replace humans in the workplace. ‘Smart revolution’ considers the implications commercially, socially and politically.

Investment team

Our Global Emerging Markets Equity strategy is managed by an experienced team. Our global sector analysts and investment managers are located on a single floor in London, which helps to ensure that the investment process is flexible and opportunistic. Guided by our global investment themes, the team works together to identify opportunities and risks through research and debate.

18
years' average investment experience
15
years' average time at Newton
  • Robert Marshall-Lee
    Robert Marshall-Lee

    Investment leader, emerging and Asian equities

  • Naomi Waistell
    Naomi Waistell

    Portfolio manager, emerging and Asian equities

  • Sophia Whitbread
    Sophia Whitbread

    Portfolio manager, emerging and Asian equities

  • Robert Hay
    Robert Hay

    Portfolio manager, global equities

  • Paul Markham
    Paul Markham

    Portfolio manager, global equities

  • Jeff Munroe
    Jeff Munroe

    Investment leader, global equities

  • Simon Nichols
    Simon Nichols

    Portfolio manager, UK equities

  • Ben Smith
    Ben Smith

    Analyst, equity opportunities

  • Yuko Takano
    Yuko Takano

    Portfolio manager, global equities

Strategy profile

Objective

To achieve long-term capital growth through investing in emerging market securities.

Comparative index:

MSCI Emerging Market Index (NDR)

Performance aim:

To outperform the comparative index in excess of 3% p.a. over a rolling five year period

Typical number of equity holdings:

40 to 70

Strategy size:

AUD$2.3bn (as at 31 December 2019)

Strategy inception:

May 2011
AUS Global Emerging Markets Strategy brochure

Brochure

More detail on the strategy's investment approach.

Download Brochure

View transcript

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.

Key investment risks

 

  • There is no guarantee that the strategy will achieve its objective.
  • This strategy invests in international markets which means it is exposed to changes in currency rates which could affect the value of the strategy.
  • A fall in global emerging markets may have a significant impact on the value of the strategy because it primarily invests in these markets.
  • The strategy may use derivatives to generate returns as well as to reduce costs and/or the overall risk of the strategy. Using derivatives can involve a higher level of risk. A small movement in the price of an underlying investment may result in a disproportionately large movement in the price of the derivative investment.
  • The strategy invests in emerging markets. These markets have additional risks due to less developed market practices.
  • A fall in the value of a single investment may have a significant impact on the value of the strategy because it typically invests in a limited number of investments.
  • The strategy may invest in small companies which may be riskier and less liquid (i.e. harder to sell) than large companies. This means that their share prices may have greater fluctuations.