This strategy is offered by Newton Investment Management North America LLC (‘NIMNA’) in the United States. NIMNA is part of the Newton Investment Management Group.

Strategy Overview

Technology is at the epicenter of nearly all themes, regardless of sector, industry or geography. Robotics, Artificial Intelligence (AI), Future Mobility, and Factory Automation are just a few of the many investment themes that exist due to the emergence of technology, and more importantly, device connectivity also known as Internet of Things (IoT ). Without IoT, recent advancements including machine learning, data centers, sensing and communicating robots, autonomous vehicles, rain and soil sensors, smart thermostats and doorbells, and millions of connected devices around the world would not exist. In this context, IoT is at the center of almost all themes and technological innovation, creating and enabling a connected, efficient, faster, safer and better world. IoT is also the foundation of the infrastructure that enables “Remote Life”. Due to its fundamental and enabling support for so many other themes, IoT is sometimes referred to as a “Theme of Themes”.

We follow a disciplined investment process that leverages the fundamental analysis of our Global Research team and the quantitative rankings of our alpha models. Fundamental research enables us to focus on individual securities that are modeled and analyzed for two years or more. Included in this analysis is significant work on non-quantitative attributes, such as management plans, execution, and product, intellectual property (IP), or business model uniqueness. Complementary to this, our experience in quantitative research and risk management allows us to optimize idiosyncratic risk and return at the portfolio level. This blend of quantitative and fundamental analysis maximizes the strengths of both disciplines. Further, we utilize a thematic classification framework designed around broad transformational trends across seven core themes: Consume, Move, Heal, Build, Secure, Renew and Connect. This platform approach to thematic classification provides us with compelling and dynamic universes with maximum beta to the themes to support the portfolio stock selection process.

Investment Team

Our investment team of research analysts and portfolio managers work together across regions and sectors, helping to ensure that our investment process is highly flexible

23
years’ average investment experience
16
years’ average time at Newton

Strategy Profile

Objective

The strategy seeks to generate returns through a concentrated equity portfolio that benefits from investment opportunities in the IoT space.

Benchmark

Internet of Things Custom Index.

The Internet of Things Custom Index performance benchmark is used as a comparator for this strategy. It is comprised of the GICS sub-industries, of the mid and small-cap stocks of developed-market countries that are identified to have an Internet of Things focus. There is no representation that such index is an appropriate benchmark for such comparison.

Strategy inception

May 1, 2017

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.