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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).
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.
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Performance benchmark
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The Newton Responsible Multi-Asset 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 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 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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Sustainable investment restrictions
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Strategies that follow the Newton sustainable investment framework are subject to a set of minimum exclusions referred to as ‘sustainable investment restrictions’. These restrictions include companies involved in or that generate a material proportion of revenues from activities that are deemed to be harmful from an environmental or social perspective.
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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
- A focus on capital growth and income
- A cost-effective method of gaining exposure to equities and fixed-income securities
- Investing in issuers that demonstrate positive sustainability characteristics by either contributing to or aligning with Newton’s proprietary sustainable investment themes
- Actively omitting issuers involved in areas deemed to be harmful from an environmental or social perspective, as well as those that violate the UN Global Compact Principles
- At least 70% of portfolio invested in securities that demonstrate sustainability characteristics
- The Fund is recognised as a charity for UK tax purposes, meaning that income or gains can flow through to participating charities without being subject to further tax
Investment team
The Fund is managed by an experienced team with a wide range of backgrounds and has dedicated support from Newton’s responsible investment team. 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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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 Responsible Multi-Asset Fund for Charities (CAIF) 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).
The Fund does not seek a specific sustainability outcome as part of its investment objective, but in pursuing its investment objective a minimum of 70% of holdings will be invested in securities assessed to have sustainability characteristics, in accordance with the Newton sustainable investment framework. This Fund does not have a UK sustainable investment label.
Further information on the Fund’s sustainability characteristics is available in the UK SDR Consumer Facing Disclosure (CFD).
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.
- Changes in interest rates & inflation risk: Investments in bonds/money market securities are affected by interest rates and inflation trends which may negatively affect the value of the Fund.
- Credit risk: The issuer of a security held by the Fund may not pay income or repay capital to the Fund when due.
- 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.
- 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.
- Responsible investing risk: The investment policy for this Fund places restrictions on its exposure to certain sectors or types of investments to reflect its responsible investing approach. The Fund’s performance may be negatively impacted due to these restrictions in comparison to strategies which do not have these restrictions. The Fund will not engage in securities lending activities and, therefore, may forego any additional returns that may be produced through such activities.
- Emerging markets risk: Investments in emerging markets (developing economies) have additional risks. This is due to these countries having less developed market practices.