Asset Allocation Australia Summit, Sydney

We are pleased to be a gold sponsor of the Asset Allocation Australia Summit in Sydney on 5 May, where we will explain why the superannuation industry shouldn’t ignore the emerging world as a growth opportunity.

Emerging markets: Navigating opportunities and pitfalls in a changing world

  • Embracing the new China investment landscape
  • Doing business in India after a period of reform
  • Companies tapping large addressable market opportunities through the provision of solutions in health care, financial services and clean tech
  • Governance as a crucial lens to navigate an uncertain macro, regulatory and geopolitical environment

Unearthing sustainable growth in emerging markets

Emerging markets are underserved and underrepresented in global indices. They offer the opportunity for investors to ride the powerful tailwinds of rising real incomes and urbanisation, and to harness sustainable themes such as clean energy, electrification, digitisation and health care.

We believe that active and selective deployment of capital into such areas can reward superannuation funds over the long term, as well as have a positive effect on people’s lives.

China and India: taking a sustainable approach

The investment communications team’s Matthew Goodburn asks portfolio manager Ian Smith and global strategist Richard Bullock about the importance of themes and sustainability when investing in emerging markets.

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, economic or political instability, or less developed market practices.

Change brings opportunities for long-term sustainable growth

The emerging world is a growth opportunity that is hard to ignore, especially when one considers its rich potential growth profile:

Explore Newton’s Global Emerging Market strategies

Global Emerging Markets Equity

A high-conviction strategy seeking to capture the growth premium associated with emerging markets.

Sustainable Global Emerging Markets

An actively managed strategy investing in emerging-market companies that demonstrate attractive investment attributes and that are seeking to manage social and environmental factors well to generate sustainable returns.

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Keen to speak to our investment specialist about Newton’s emerging-market strategies?

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Three reasons to invest in the Newton Sustainable Global Emerging Markets strategy

This strategy is offered by Newton Investment Management Ltd (‘NIM’). NIM is part of the Newton Investment Management Group.

We believe that an active and highly selective approach, which puts sustainability considerations at the heart of the investment process, is the best way to unearth exciting long-term growth opportunities in this area.

Armor, Shield, First Aid
Emphasis on quality and governance
Our strategy aims to capture long-term value creation, and seeks to invest in compounders – companies that generate real value from their growth and reinvest it for the benefit of all shareholders.

Number, Symbol, Text
Consistent, repeatable approach
The strategy follows a highly committed, active and repeatable process, which aims to deliver strong cumulative returns that are driven by a high-conviction, benchmark-agnostic approach. While the team does not exclude whole countries from the investment universe, it may decide that the investment case for one specific economy is not as robust as for other countries.

Plot, Plan, Diagram
Experience and track record
Newton has over 20 years’ experience in investing in emerging markets. Investors can benefit from the broad expertise of Newton’s emerging and Asian equity team and the proprietary research produced by Newton’s team of global sector and responsible investment analysts.
Road, Freeway, Intersection

Meet the team

Ian Smith, Paul Birchenough and Alex Khosla are emerging-market equity specialists. They form part of the global opportunities team, which consists of nine investment professionals, with an average of 17 years’ investment experience.*

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.

Newton Sustainable Global Emerging Markets strategy – key investment risks

  • Objective/performance risk: There is no guarantee that the strategy will achieve its objectives.
  • Currency risk: This strategy invests in international markets which means it is exposed to changes in currency rates which could affect the value of the strategy.
  • Geographic concentration risk: The strategy may have substantial investment exposure to a single market which may have a significant impact on the value of the strategy.
  • Emerging markets risk: Emerging markets have additional risks due to less-developed market practices.
  • Concentration risk: 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.
  • Shanghai-Hong Kong Stock Connect and/or the Shenzhen-Hong Kong Stock Connect (‘Stock Connect’) risk: The strategy may invest in China A shares through Stock Connect programmes. These may be subject to regulatory changes and quota limitations. An operational constraint such as a suspension in trading could negatively affect the strategy’s ability to achieve its investment objective.
  • Counterparty risk: The insolvency of any institutions providing services such as custody of assets or acting as a counterparty to derivatives or other contractual arrangements, may expose the strategy to financial loss.
  • Sustainable strategies risk: The strategy follows a sustainable investment approach, which may cause it to perform differently than strategies that have a similar objective but which do not integrate sustainable investment criteria when selecting securities. The strategy will not engage in stock lending activities and, therefore, may forego any additional returns that may be produced through such activities.
  • Derivatives risk: Derivatives are highly sensitive to changes in the value of the asset from which their value is derived. A small movement in the value of the underlying asset can cause a large movement in the value of the derivative. This can increase the sizes of losses and gains, causing the value of your investment to fluctuate. When using derivatives, the strategy can lose significantly more than the amount it has invested in derivatives.

1 https://www.yardeni.com/pub/mscipe.pdf 23 March, 2021
2 https://www.yardeni.com/pub/mscipe.pdf 23 March, 2021
3 https://www.weforum.org/agenda/2020/07/the-rise-of-the-asian-middle-class 13 July, 2020
* Source: Newton group of companies, 1 April 2022. From 1 September 2021, Newton group of companies includes Newton Investment Management Limited (NIM) and Newton Investment Management North America (NIMNA). Years’ investment experience are team average numbers as at 7 February 2022, with years at firm relating to tenure at Newton and/or Mellon Investments Corporation.