Sustainable US Equity

Strategy Highlights

: Considering 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, environmental degradation or 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 analysis 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.
: 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 themes to help identify opportunities.

Investment Team

Our Sustainable US Equity strategy is managed by a team with a wide range of backgrounds. In-house research analysts are at the core of our investment process, and our multidimensional research platform spans fundamental, thematic, ESG, quantitative, geopolitical, investigative and private-market research to promote better-informed investment decisions.

22: years’ average investment experience
17: years’ average time at Newton

Julianne McHugh

Head of sustainable equities
Nick Pope

Portfolio manager, sustainable equity strategies
Paul Markham

Head of Global Opportunities
Simon Nichols

Portfolio manager, Global Opportunities team
Karen Miki Behr

Portfolio manager, Global Opportunities team
Duncan Bulgin

Portfolio manager, Global Opportunities team
Jonathan Dennis

Portfolio analyst, Global Opportunities team

Strategy Profile

Objective: The strategy seeks to outperform the S&P 500 Index over rolling five year periods before fees through investment in companies that demonstrate attractive investment attributes, sustainable business practices and have no material unresolvable environmental, social and governance (ESG) issues.
Performance benchmark: S&P 500

Typical number of equity holdings: 30 to 50

Strategy size: C$0.9bn (as at Mar 31, 2023)
Strategy inception: May 1, 2017

Strategy factsheet

Performance and commentary for the last quarter.

Download Factsheet

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 will make investment decisions that are not based solely on ESG considerations. Other attributes of an investment may outweigh ESG considerations when making investment decisions. The way that ESG and sustainability considerations are assessed and the assessment of their suitability for Newton’s sustainable strategies may vary depending on the asset class and strategy involved. For Newton’s sustainable strategies, ESG reviews are performed prior to investment for corporate investments (single name equity and fixed income securities). The analysis will then also follow the Newton sustainable investment process to ensure it fits with the wider Newton sustainable investment philosophy.

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 primarily invests in a single market which may have a significant impact on 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.

Investment in Smaller Companies Risk: This strategy may invest in the smaller companies. The securities of smaller companies may possess greater potential for growth, but can also involve greater risks, such as limited product lines and markets, and financial or managerial resources. Trading in these securities may be subject to more abrupt price movements and greater fluctuations in available liquidity than trading in the securities of larger companies.

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.