Newton Investment Management (“Newton IM”) has expanded its range of sustainable funds with the launch of the Newton Sustainable Sterling Bond Fund, for institutional and retail investors, including charity clients.
The Newton Sustainable Sterling Bond Fund is co-managed by Howard Cunningham and Scott Freedman. It is the third fund to be launched in the sustainable range this year, following the launch of the Newton Sustainable Real Return Fund in April 2018, and the Newton Sustainable Global Equity Fund in January 2018.
The objective of the Fund is to achieve capital growth and income through investment predominantly in fixed interest securities that are denominated in Sterling or hedged back to Sterling. The Fund aims to achieve its objective through investing in government and public securities and fixed interest securities of companies that demonstrate attractive investment attributes and sustainable business practices. More than 35% of assets may be invested in gilts. The Fund may invest up to 50% of assets in sub-investment grade fixed income securities.
Every holding in the Fund is subject to an ESG quality review and the following policies are applied as part of a robust security selection process:
- Sustainable ‘red lines’: ensure that certain companies are not eligible for investment (such as companies that Newton considers are not aligned with the UN Global Compact Principles or the principles of a 2-degree’ world).
- Investing in companies that Newton considers positively manage the material impacts of their operations and products on the environment and society.
- Embedding ESG analysis to look beyond the financial statements.
- Avoidance of companies that Newton considers have material and unresolvable ESG-related risks, which are likely to negatively impact future performance. Newton’s responsible investment team can veto securities based on ESG factors.
- No direct investment in any company that derives more than 10% of its turnover from the production and sale of tobacco.
Julian Lyne, Chief Commercial Officer at Newton IM, said:
“Our approach to sustainable investing, which has been core to Newton since we launched 40 years ago, stems from our belief that companies that operate in a sustainable manner and optimise their resources will ultimately benefit shareholders and bondholders over the long term.”
“The fund complements our recently expanded sustainable range. With this new fund, and throughout the sustainable range, we use ESG analysis to positively identify companies with robust business models which effectively incorporate sustainability into their core business and strategy. This investment philosophy ensures we provide our clients with exposure to high-quality sustainable securities with strong long-term investment opportunities.”
The Newton Sustainable Sterling Bond Fund is part of the BNY Mellon Investment Funds range. It is registered for distribution in the UK.
Newton Investment Management manages £2.6 billion on a sustainable or ethical basis (as of 31 March 2018).
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Notes to editors:
Newton Investment Management Ltd (NIM) is a London-based global investment management subsidiary of The Bank of New York Mellon Corporation. NIM and Newton Investment Management (North America) Limited (NIMNA) are authorised and regulated by the Financial Conduct Authority. NIMNA is also registered with the US Securities and Exchange Commission. Registered address, The Bank of New York Mellon Centre, 160 Queen Victoria Street, London, EC4V 4LA. Registered in England No. 01371973 (NIM) and No. 2675952 (NIMNA).
With assets under management of £49.8bn as at 31 March 2018, Newton provides investment products and services to a wide range of clients, including pension funds, charities, corporations and (via BNY Mellon) individuals. News and other information about Newton is available at www.newtonim.com and via Twitter: @NewtonIM.
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All information sourced by BNY Mellon as of 16 May 2018. This press release is qualified for issuance in the UK and is for information purposes only. It does not constitute an offer or solicitation of securities or investment services or an endorsement thereof in any jurisdiction or in any circumstance in which such offer or solicitation is unlawful or not authorized. This press release is issued by BNY Mellon Investment Management EMEA Limited to members of the financial press and media and the information contained herein should not be construed as investment advice. The value of investments can fall. Investors may not get back the amount invested. Income from investments may vary and is not guaranteed. Investment Managers are appointed by BNY Mellon Investment Management EMEA Limited (BNYMIM EMEA) or affiliated fund operating companies to undertake portfolio management activities in relation to contracts for products and services entered into by clients with BNYMIM EMEA or the BNY Mellon funds. Registered office of BNY Mellon Investment Management EMEA Limited: BNY Mellon Centre, 160 Queen Victoria Street, London, EC4V 4LA. Registered in England no. 1118580. Authorized and regulated by the Financial Conduct Authority. A BNY Mellon Company