Our philosophy and process
- The strategy is conviction-based, with no regional or sector constraints. Portfolios tend to hold stocks of cash-generative companies with highly attractive dividend yields. The strategy employs a valuation screen to help portfolios in their aim to achieve a dividend yield above that of the index.
- A constantly evolving and forward-looking approach seeks to anticipate change, manage risk, and identify opportunities.
- ESG considerations are integrated throughout the research process and via proprietary quality reviews, to ensure that any material issues are captured.
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.
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.
The world has made the transition from connecting places to connecting people to connecting devices. The rapid rise in the ‘internet of things’ is transforming lifestyles and business. This creates winners and losers – our ‘net effects’ theme seeks to identify them.
Cheap money has caused rapid growth in a sector already supported by deregulation. ‘Financialisation’ investigates the implications of finance dominating economic activity, instead of serving it.
Our Global Equity Income 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.
- years' average investment experience
- years' average time at Newton
Investment leader, equity income
Portfolio manager, equity income
Analyst, equity income
Portfolio manager, emerging and Asian equity income
Portfolio manager, UK equity income
Analyst, equity income
- To generate distributions over an annual period together with long-term capital growth from investing predominantly in global securities.
- FTSE World Index
Typical number of equity holdings:
- 40 to 70
- Every new holding in a global equity income portfolio typically has a prospective yield 25% greater than the index at the point of purchase. Any holding whose prospective yield falls below the comparative index yield will trigger our sale discipline process.
- AUD$17.1bn (as at 30 June 2019)
- 1 January 2006
More detail on the strategy's investment approach.
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 global markets which means it is exposed to changes in currency rates which could affect the value of the strategy.
- 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 may invest 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.