The site you are about to enter is intended for Canadian institutional investors only, defined as 'Permitted Clients' in National Instrument 31-103 only. 'Newton' and/or 'Newton Investment Management' is a corporate brand which refers to the following group of affiliated companies: Newton Investment Management Limited (NIM) and Newton Investment Management North America LLC (NIMNA). NIM is availing itself of the International Adviser Exemption ("IAE") in the following Canadian Provinces: Alberta, British Columbia, Ontario and Québec. The IAE is in compliance with National Instrument 31-103, Registration Requirements, Exemptions and Ongoing Registrant Obligations. NIMNA is availing itself of the IAE in the following Canadian Provinces: Alberta, British Columbia and Manitoba. The IAE is in compliance with National Instrument 31-103, Registration Requirements, Exemptions and Ongoing Registrant Obligations.
DYNAMIC EQUITY: Pursuing Structural Excess Returns Not Traditional Alpha
In the search for outperformance in a competitive environment, investors have become more accepting of alternative approaches. Dynamic Equity is an innovative strategy that utilizes different return drivers from those used by traditional active equity strategies.
We believe Dynamic Equity is worthy of consideration by investors who have grown frustrated with subpar results and desire the possibility of outperformance.
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Different Approach, Different Outcome
From modest beginnings in the 1970-80s, Dynamic Equity has grown in both stature and scope by delivering a differentiated source of potential excess returns from market structure and asset-allocation decisions.
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.
Dynamic Equity Seeks to Apply the Benefits of Market Structure and Diversification in Pursuit of Excess Returns
The strategy seeks to opportunistically combine equity exposure with two key diversifying assets – US Treasury bonds and cash – along with a modest amount of leverage. It aims to create an efficient allocation, based on the long-term risk/return relationship between stocks, bonds and cash, that seeks to deliver more return per unit of risk than an equity-only portfolio.
Fundamental valuation, macro, volatility and tail-risk management are incorporated in the strategy, which historically has led to low downside participation and high upside participation.*
· Emphasizes capital market principles and classical valuation methods · Designed to protect downside and capture upside · Available across multiple benchmarks · Cost-effective, highly liquid, index-based implementation · Competitive fee
Three Reasons to Invest in Dynamic Equity
Longevity The strategy’s 32-year track record demonstrates the longevity of the approach and our ability to apply financial theory. We believe the underlying premise of the strategy will persist.
Flexibility Dynamic Equity has navigated disparate market environments – which demanded a broad range of stock-bond-cash allocations – while maintaining an equity risk profile.
Diversification The excess returns are uncorrelated with traditional active equity approaches, which can help to diversify return streams.*
Explore Newton’s Dynamic Equity Strategy
Dynamic Equity targets 200-400 basis points of excess return while maintaining a benchmark risk profile.
To Learn More About Dynamic Equity, Contact the Team Today
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* 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.