Sustainable International Equity

Strategy Highlights

: Embedding environmental, social and governance (ESG) analysis to look beyond the financial statements

Investing in companies that positively manage the material impacts of their operations and products on the environment and society

Actively omitting companies involved in areas of high social cost or environmental degradation, and violators of the UN Global Compact Principles
: This strategy is offered by Newton Investment Management Ltd (‘NIM’). NIM is part of the Newton Investment Management Group.

Our Philosophy and Process

: Harnessing Newton’s global analyst resources, the strategy adheres to our investment framework focused on fundamentals, themes, valuations and ESG considerations.

We focus on innovative companies and dynamic management teams that provide solutions and benefit from growth opportunities. Active corporate engagement and proxy voting provide powerful feedback loops that make us more informed shareholders who promote positive corporate development.

Our sustainable ‘red lines’ are built on a combination of exclusions that effectively avoid investments in security issuers involved in or that generate a material proportion of revenues from areas of activity that we deem to be harmful from a social and/or environmental perspective.

The strategy avoids exposure to unsustainable and unethical activities within set thresholds.

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

Investment Team

Our Sustainable International Equity strategy is managed by a team of portfolio managers who form part of Newton’s equity opportunities team. Our dedicated responsible investment team is an integral part of the investment decision-making process. Guided by our global investment themes, we seek to identify opportunities and risks through research and debate.

19: years’ average investment experience
11: years’ average time at Newton

Karen Miki Behr

Portfolio manager, Global Opportunities team
Paul Birchenough

Co-head emerging markets and Asia equities team
Duncan Bulgin

Portfolio manager, Global Opportunities team
Jonathan Dennis

Portfolio analyst, Global Opportunities team
Alex Khosla

Portfolio manager, emerging markets and Asia equities team
Paul Markham

Head of Global Opportunities
Julianne McHugh

Head of sustainable equities
Simon Nichols

Portfolio manager, Global Opportunities team
Nick Pope

Portfolio manager, sustainable equity strategies
Aditya Shah

Research analyst, emerging markets and Asia equities team
Ian Smith

Co-head emerging markets and Asia equities team

Strategy Profile

Objective: The strategy seeks long-term capital appreciation through investing in ex-US companies that demonstrate attractive investment attributes and sustainable business practices
Performance benchmark: MSCI EAFE (NDR)

Typical number of equity holdings: Typically 30-50 holdings

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

: 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.

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.

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.

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.

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.