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.

Find out more about our investment philosophy

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
Red lines: Our ‘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.
Strategy inception: May 1, 2017

Strategy factsheet

Performance and commentary for the last quarter.

Download Factsheet

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, responsible investment, quantitative, geopolitical, investigative and private-market research to promote better-informed investment decisions.

Want to find out more?

Julianne McHugh

Head of sustainable equities

Nick Pope

Portfolio manager, Sustainable Equity strategies

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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 criteria. Other attributes of an investment may outweigh ESG analysis when making investment decisions. The way that ESG and sustainability criteria are assessed and the evaluation of their suitability for Newton’s sustainable strategies may vary depending on the asset class and strategy involved. For Newton’s sustainable strategies, ESG analysis is 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 from strategies that have a similar objective but which do not integrate sustainable investment criteria when selecting securities.