Investment approaches
Sustainable global dynamic bond
A fixed-income strategy with a dynamic, absolute-return approach, investing in securities that demonstrate attractive investment attributes and sustainable business practices
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Embedding environmental, social and governance (ESG) analysis to look beyond the financial statements
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Investing in sustainable sovereign bonds, and bonds of companies that positively manage the material impacts of their operations and products on the environment and society
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Global investment universe, with the flexibility to use stabilising assets and hedging positions to provide downside protection
Our philosophy and process
- Sustainable ‘red lines’ ensure the bonds of the poorest-performing companies are not eligible for investment, such as companies which violate the UN Global Compact Principles of sustainable corporate performance. Companies which we think are incompatible with the aim of limiting global warming to 2°C are also excluded. We engage with companies where ESG issues are resolvable and can be improved, and report on that activity. We will not invest in any company that derives more than 10% of its turnover from the production and sale of tobacco.
- The strategy follows an unconstrained, highly dynamic asset-allocation approach within a broad universe of global bonds; it can invest in government bonds, emerging-market sovereigns, high-yield bonds and investment-grade corporate debt. The strategy has the flexibility to manage currency exposure actively to generate additional returns.
- 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.
Investment team
Our Sustainable Global Dynamic Bond strategy is managed by a focused, experienced fixed-income 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. Our dedicated responsible investment team is an integral part of the investment decision-making process. Guided by our global investment themes, the team works together to identify opportunities and risks through research and debate.
- 18
- years' average investment experience
- 10
- years' average time at Newton
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Howard Cunningham
Portfolio manager, fixed income
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Scott Freedman
Analyst and portfolio manager, fixed income
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Martin Chambers
Credit analyst, fixed income
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Paul Brain
Investment leader, fixed income
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Andrew Parry
Head of sustainable investment
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Ian Burger
Head of responsible investment
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Lloyd McAllister
Responsible investment analyst
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Rebecca White
Responsible investment analyst
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Parmeshwar Chadha
Portfolio manager, fixed income
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Jon Day
Portfolio manager, fixed income
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Carl Shepherd
Portfolio manager, fixed income
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Trevor Holder
Portfolio manager, fixed income
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Ashwin Palta
Credit research analyst, fixed income
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Catherine Doyle
Investment specialist
Strategy profile
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Objective
- To maximise the total return from income and capital growth by investment primarily in a globally diversified portfolio of debt and debt-related securities issued by companies and governments that demonstrate attractive investment attributes and are deemed to be sustainable.
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Performance aim
- Aims to deliver a minimum return of cash (one-month LIBOR) +2% per annum over 5 years before fees. However, a positive return is not guaranteed and a capital loss may occur.
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Strategy size
- A$0.5bn (as at 31 March 2020)
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Strategy inception
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Composite inception: 1 March 2019
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
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- The performance aim is not a guarantee, may not be achieved and a capital loss may occur.
- The strategy invests in international 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.
- Investments in bonds are affected by interest rates and inflation trends which may affect the value of the strategy.
- The strategy holds bonds with a low credit rating that have a greater risk of default. These investments may affect the value of the strategy.
- The strategy may invest in emerging markets. These markets have additional risks due to less developed market practices.
- The strategy follows a sustainable investment approach, which may cause it to perform differently to strategies that have a similar objective but which do not integrate sustainable investment criteria when selecting securities.