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Objective
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The Fund aims to achieve income and capital growth in excess of inflation (as measured by the Consumer Price Index) plus 4% per annum (after fees have been deducted) over the long term (rolling 10-year periods) while adhering to the Fund’s Catholic faith-consistent exclusions policy.
There is no guarantee that the Fund will achieve its investment objective or that a positive return will be delivered over any time period and capital is at risk. -
Performance benchmark
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The Newton Catholic Values Fund for Charities uses the following two measures as appropriate benchmarks for comparison:
Primary benchmark: Over rolling 10-year periods (meaning a period of 10 years, no matter which day you start on), the Fund will measure its performance after fees against inflation (as measured by the Consumer Price Index) plus 4% per annum. The Consumer Price Index (CPI) is the main measure of inflation in the UK and tracks the average change from month to month in the prices of goods and services purchased by most UK households. This comparator is considered appropriate as, whilst it does not take Catholic values criteria into account, it is representative of the target return of the Fund.
Secondary benchmark: As a secondary comparator, the Fund will measure its performance against the ARC Steady Growth peer group benchmark. This benchmark is specifically designed to be used by charity trustees and advisers in assessing the performance of charity investment portfolios. This comparator is considered appropriate as, whilst it does not take Catholic values criteria into account, it is representative of the Fund’s peer group and its risk profile.
As an actively managed fund, the Investment Manager can make investment decisions (whether to buy, sell or hold assets) at its discretion. These decisions are made in line with the Fund’s objective and investment policy as disclosed in the Prospectus.
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Catholic faith-consistent exclusions
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The Fund follows Catholic faith-consistent exclusions to:
- Systematically integrate Catholic Social Teaching into the investment process and avoid investing in issuers whose activities contradict the Catholic faith community’s teachings, such as those reflected in the Mensuram Bonam and Laudato Si
- Exclude direct investment in issuers that derive revenues from the Catholic faith-consistent excluded activities beyond the investment manager’s predetermined thresholds
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Fund structure
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The Fund is a non-UCITS retail scheme (NURS) within a Charity Authorised Investment Fund (CAIF) structure. The CAIF is a dual-regulated vehicle and a registered charity. It is subject to ongoing oversight by the Charity Commission in addition to the Financial Conduct Authority (FCA). Being formally registered as a charity means that any income or gains distributed by the CAIF flow through to participating charities without being subject to further tax. In addition, the Fund’s annual management charge is not currently subject to VAT.
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Literature
Strategy highlights
- Faith-consistent screening is applied with the aim of excluding securities that do not reflect Catholic Social Teaching principles
- Direct investment in securities provides transparency and reassurance to investors that ethical restrictions are being addressed across the entire portfolio
- Security selection driven by bottom-up proprietary research which is underpinned by our multidimensional approach
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.
You should read the Prospectus and the Key Investor Information Document (KIID) for each fund in which you want to invest. The Prospectus and KIID can be found in the literature section above.
Tax treatment depends on the individual circumstances of each client and may be subject to change in the future. Newton is not a tax expert and independent tax advice should be sought.
The Newton Catholic Values Fund for Charities is a unit trust authorised by the Financial Conduct Authority as a non-UCITS retail scheme and is operated by BNY Mellon Fund Managers Limited (BNY MFM).
Investment team
The Fund is managed by an experienced team with a wide range of backgrounds. In-house research analysts are at the core of our investment process, and our multidimensional research capabilities help to promote better-informed investment decisions.
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Key investment risks
- Objective/performance risk: There is no guarantee that the Fund will achieve its objectives.
- Currency risk: This Fund invests in international markets which means it is exposed to changes in currency rates which could affect the value of the Fund.
- 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 Fund can lose significantly more than the amount it has invested in derivatives.
- Credit risk: The issuer of a security held by the Fund may not pay income or repay capital to the Fund when due.
- Charges to capital risk: The Fund takes its charges from the capital of the Fund. Investors should be aware that this has the effect of lowering the capital value of your investment and limiting the potential for future capital growth. On redemption, you may not receive back the full amount you initially invested.
- 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 Fund to financial loss.
- Faith-consistent exclusions risk: The Fund follows a faith consistent exclusions approach, which may cause it to perform differently than funds that have a similar objective but which do not follow faith-consistent exclusions when selecting securities.
- Emerging markets risk: Emerging markets have additional risks due to less-developed market practices.
- Geographic concentration risk: Where the Fund invests significantly in a single market, this may have a material impact on the value of the Fund.
- Concentration risk: A fall in the value of a single investment may have a significant impact on the value of the Fund because it typically invests in a limited number of investments.
- Liquidity risk: The Fund may not always find another party willing to purchase an asset that the Fund wants to sell which could impact the Fund’s ability to sell the asset or to sell the asset at its current value.