Why Newton?

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    Environmental, social and governance (ESG) analysis fully integrated into our core investment process
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    Single investment team working collaboratively across asset classes and regions

Transcript

How do we describe ourselves at Newton?

We’re global investors. We think globally. Every time we consider a security or look at an industry or country, it’s in the context of what’s happening across the world. Because we believe nothing occurs in isolation.

And we invest globally across asset classes because we see potential all over the investable universe,

What sets us apart is our collaboration, the way our single investment team is integrated.
Guided by our global investment themes, together the team researches and debates to identify opportunities and risks.

The themes are our interpretation of the forces driving long-term change in the world. They help us shut out the distraction of short-term ‘noise’.

The themes are divided into four groups:
– finance and policymaking
– innovation
– energy, environment and infrastructure
– and geopolitics and demographics 

At any given time, we may be looking at topics varying from artificial intelligence to crop protection, from driverless cars to Chinese debt.

We believe that responsible investing is integral to meeting the long-term goals of our clients. So when we look at any business, we consider many elements: not just its thematic attractions, but its fundamental qualities and environmental, social and governance risks. It’s a holistic investment approach.

And that’s why, when we look at themes, we bring together generalists and specialists from across the firm – all working under one roof, interacting and generating ideas, with a single focus – successful investment. It’s as much about avoiding the losers as picking the winners.

And as the world evolves, so do our themes. They’re not predictions; they’re a dynamic framework intended to help us navigate the investment landscape for our clients.

Our investment process

Every time we consider a security or look at an industry or country, it’s in the context of what’s happening across the world. We believe the investment landscape is shaped over the long term by some key trends, and we use a range of global investment themes to capture these.

Healthy demand

The industry for health-care products and services is growing rapidly. Ageing populations are fuelling demand in developed economies, and increasing incomes and changing lifestyles are creating new markets in emerging economies. ‘Healthy demand’ looks at the opportunities and the risks.

Net effects

The world has made the transition from connecting places to connecting people to connecting devices. The rapid rise in the ‘internet of things’ is transforming lifestyles and business. This creates winners and losers – our ‘net effects’ theme seeks to identify them.

Financialisation

Cheap money has caused rapid growth in a sector already supported by deregulation. ‘Financialisation’ investigates the implications of finance dominating economic activity, instead of serving it.

Smart revolution

Machines and networks are becoming more intelligent. This is disrupting the labour market, as machines increasingly replace humans in the workplace. ‘Smart revolution’ considers the implications commercially, socially and politically.

State intervention

Authorities have engaged in ever-greater policy intervention and regulation to shore up economic growth. We believe ‘state intervention’ has increased misallocation of capital, caused volatility in markets and inflated asset prices – and we think that calls for a stock-specific approach.

Earth matters

Environmental factors are high up the political agenda and provide areas of opportunity as well as risk. Governments are under pressure to respond but this can be expensive, despite advancements in technology. ‘Earth matters’ looks at these issues.

Population dynamics

Populations are shifting significantly, with unprecedented ageing in mature economies and income growth driving changes in developing economies. This leads to differences in growth and fiscal burdens. ‘Population dynamics’ explores what shifts in demography mean for investors.

China influence

The influence of China on the world has grown exponentially but its economy looks increasingly risky. ‘China influence’ looks at how the country’s development affects the investment outlook beyond its borders.1

1 Compared to more established economies, the value of investments in emerging markets may be subject to greater volatility owing to differences in generally accepted accounting principles or from economic or political instability or less developed market practices.

Consumer power

Technological advances are increasingly shifting the power to consumers in the marketplace. With the ability to compare prices and products independently now in the hands of the consumer, businesses must adapt to a changing commerce landscape, as their customers seek out better experiences, authenticity and value. Our ‘consumer power’ theme addresses these trends.

  • How do our investment themes help us try to meet our clients’ objectives?

    Our themes help us shut out the distraction of short-term market ‘noise’ and try to overcome the short-term uncertainties that challenge investors in order to identify the structural areas of opportunity and risk in financial markets. We believe our quest to achieve a longer-term perspective ultimately helps to generate better long-term returns for our clients.
  • How does our thematic approach work in practice?


    Our global investment themes are vital to us in providing crucial perspective on the investment landscape. They identify key long-term forces of structural change, such as changing demographics and a technological revolution, and give us a framework for research and debate.

    We use themes in each of our strategies alongside rigorous bottom-up analysis and the consideration of environmental, social and governance risks.

Our investment team

Collaboration is critical in seeking to deliver performance for our clients. Our single investment team of global industry analysts and investment managers works together across regions and sectors, helping to ensure that our investment process is flexible and opportunistic. Guided by our global investment themes, the team works together to identify opportunities and risks through research and debate.

Global research

In-house research is at the core of our investment process. Analysis is a career at Newton, not an interim pathway to investment management, and our global research analysts are experts in their fields.

Our global industry analysts look on a global basis for companies that can deliver strong long-term performance.

Environmental, social and governance (ESG) considerations are fully integrated in our research process. Our responsible investment analysts carry out an ESG quality review of each company that our sector analysts are considering recommending for investment.

Portfolio managers

Our portfolio managers have a wide range of backgrounds and experience. They provide a powerful combination of perspectives in seeking to harness the recommendations of our research analysts effectively in portfolios.

The team is structured across six key areas:

• Global equity
• Emerging and Asian equity
• Real Return
• Multi-asset
• UK
• Fixed income

Newton Executive Management Committee

Hanneke Smits
Chief Executive Officer

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Hanneke Smits is the CEO of Newton Investment Management, a role which she assumed in August 2016. Hanneke previously served as a member of the Executive Committee at private equity firm Adams Street Partners from 2001 to 2014, and was its Chief Investment Officer from 2008 to 2014. She joined Adams Street in 1997 to successfully launch its presence in Europe and Asia, and to build out its global investment capabilities. In addition, she was an investment manager at Pantheon Ventures, and worked for Philips China Hong Kong Group.

Hanneke is a member of the Investment Association’s board; she serves as Chair of Impetus-PEF a venture philanthropy organisation which backs charities that aim to transform the lives of disadvantaged young people. She also serves on the board of the Education Endowment Foundation (EEF), founded in 2011 by The Sutton Trust in partnership with Impetus. The EEF provides accessible summaries of educational research to guide teachers on how to use their resources to improve learning outcomes. Hanneke is co-founder, and former Chair, of Level 20, a not-for-profit organisation set up in 2015 to inspire women to join and succeed in the private equity industry.

Originally from the Netherlands, she has a BBA from Nijenrode University and a MBA from the London Business School.

Andrew Downs
Chief Operating Officer

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Andrew is Chief Operating Officer at Newton, overseeing Investment & Client Operations, Investment Management Support & Control, Business Strategy, IT and Projects. He joined Newton in 1994 as Head of Investment Operations, prior to which he worked in PriceWaterhouse Coopers as a senior manager in the audit department. He began his career in accounts and taxation at Bowker Orford & Co.

Andrew is a member of the Newton board. He is also a member of the Institute of Chartered Accountants in England and Wales (ACA).

Curt Custard
Chief Investment Officer

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Curt is responsible for all aspects of Newton’s global investment processes and team. He joined Newton in 2017 to lead the investment teams for the firm, including the portfolio managers, research analysts and the trading function.

Prior to joining Newton Curt was head of the Global Investment Solutions division of UBS Asset Management where he oversaw a 130+ person investment team in five locations. Prior to UBS, Curt held similar investment roles at Schroders and Allianz Global Investors.

James Helby
Chief Risk Officer

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James is chief risk officer at Newton, and was the former compliance officer for Newton’s regulated business in the UK and the US (2012-2016). In his role, James seeks to ensure that risks to the Newton business and its employees are identified and mitigated effectively. He advises the Newton board of directors on investment and operational risk and regulatory developments and changes. He also leads risk due diligence on major business development projects.

Prior to joining Newton in January 2012, James acquired a range of experience in high-profile roles at BNY Mellon Asset Management International and at the UK Financial Conduct Authority (formerly Financial Services Authority). James graduated from the University of Nottingham with a BA in industrial economics.

Julian Lyne
Chief Commercial Officer

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Julian is a member of Newton’s executive management committee with responsibility for all aspects of global distribution, client relationship management and marketing. He joined Newton in 2014 to lead the global consultant relations and UK institutional business development team.

Prior to joining Newton, Julian was Head of Institutional Business at F&C. Throughout his career he has held various roles covering client and consultant relations across both DC and DB arrangements.

Newton Investment Management and Newton Investment Management (North America) boards

Susan Noble
Non-executive director (Chair)

Susan Noble

Having graduated from the University of Manchester with a BA in History, Susan joined Chemical Bank as a European equity analyst and in 1986 joined Robert Fleming Asset Management as a European equities portfolio manager. In 1997 she joined Goldman Sachs Asset Management and held the roles of Head of European Equities and Head of Global Equities, and was appointed Managing Director in 1999. Between 2005 and 2007 she was a founder partner of The Pension Corporation and was a member of its Investment Strategy Committee.

Susan was previously a non-executive director of Alliance Trust plc and Chairman of their subsidiary ATI. She is currently a non-executive director of British Empire Trust PLC, as well as being a trustee of the Hospice of St Francis in Berkhamsted. Susan joined the Newton board in March 2015.

Susan also completed an MBA at the Manchester Business School.

Henrietta Jowitt
Non-executive director

Henrietta Jowitt

Henrietta was appointed to the Newton board in January 2015. She is experienced in business strategy and change and is currently Deputy Director General – commercial, of the Confederation of British Industry.

Prior to joining the CBI, she set up her own firm which provided advice and coaching to CEOs and senior management teams, both in the UK and internationally.

Henrietta has held a range of senior roles as group head of marketing, strategy, business development and investor relations at an executive level within a number of companies including Schroders, Advent International, Nestlé and United Biscuits. She has extensive experience of operating in most major markets, including Europe, the US, Latin America and Asia.

Henrietta holds an MA in natural sciences from the University of Oxford and has undertaken the Advanced Management Programme at Oxford University’s Saïd Business School. She is also a fellow of the Chartered Institute of Marketing.

Mitchell Harris
BNY Mellon director

Mitchell Harris

Mitchell Harris is CEO of Investment Management for BNY Mellon, which includes the company’s asset management and wealth management businesses. He is also a member of the company’s Executive Committee, the senior-most governing body of the corporation, and is the Executive Committee sponsor for Prism, a BNY Mellon Employee Resource Group that fosters an open and supportive environment for lesbian, gay, bisexual and transgender employees and their allies. Prism is one of six ERGs that reflect BNY Mellon’s commitment to diversity and workplace excellence by supporting employees with shared interests.

Mitchell was appointed CEO of Investment Management in February, 2016, having previously served as President. He also acted as interim head of BNY Mellon Asset Management from May through October 2010.

Mitchell was CEO of Standish from 2004 to 2009 and has been Chairman from 2004. He joined from Pareto Partners, where he served as CEO from 2000 to 2004 and as Chairman from 2001.

Greg Brisk
BNY Mellon director

Greg Brisk

In June 2016, Greg became the Head of Investment Management Governance, reporting to CEO Mitchell Harris and responsible for global governance for our Investment Management Boutiques, Distribution Businesses and core Business Groups as well as leading strategic initiatives internationally. In this role Greg has been appointed to many of our Boutique and regional boards, as BNY Mellon’s Investment Management representative, where he will serve as proxy to Mitchell Harris to ensure that Boutique oversight, coordination and needs are being addressed in a timely manner as well as helping oversee the day-to-day interaction with Risk and Compliance.

Prior to this, from January 2013, Greg was the Global Head of Risk and Compliance for Investment Management, an independent control function responsible for all aspects of risk and compliance across all of the asset management and wealth management businesses in BNY Mellon.

From April 2010-2012, Greg was responsible for the regional governance and oversight of BNY Mellon’s Asset Management business outside the U.S. as Chief Operations Officer, International Asset Management. Prior to 2012 he was Chief Operations Officer for BNY Mellon Asset Management International, the international distribution business of the group. Before taking on that role in 2002, he was the European Head of Risk and Compliance for the Mellon Group.

Before joining BNY Mellon in 1999, he worked at the Financial Services Authority as a banking regulator with responsibility for American banks in London. Greg spent his first 17 years working in a variety of roles at the Bank of England.

Hanneke Smits
Executive director

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Hanneke Smits is the CEO of Newton Investment Management, a role which she assumed in August 2016. Hanneke previously served as a member of the Executive Committee at private equity firm Adams Street Partners from 2001 to 2014, and was its Chief Investment Officer from 2008 to 2014. She joined Adams Street in 1997 to successfully launch its presence in Europe and Asia, and to build out its global investment capabilities. In addition, she was an investment manager at Pantheon Ventures, and worked for Philips China Hong Kong Group.

Hanneke is a member of the Investment Association’s board; she serves as Chair of Impetus-PEF a venture philanthropy organisation which backs charities that aim to transform the lives of disadvantaged young people. She also serves on the board of the Education Endowment Foundation (EEF), founded in 2011 by The Sutton Trust in partnership with Impetus. The EEF provides accessible summaries of educational research to guide teachers on how to use their resources to improve learning outcomes. Hanneke is co-founder, and former Chair, of Level 20, a not-for-profit organisation set up in 2015 to inspire women to join and succeed in the private equity industry.

Originally from the Netherlands, she has a BBA from Nijenrode University and a MBA from the London Business School.

Andrew Downs
Executive director

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Andrew is Chief Operating Officer at Newton, overseeing Investment & Client Operations, Investment Management Support & Control, Business Strategy, IT and Projects. He joined Newton in 1994 as Head of Investment Operations, prior to which he worked in PriceWaterhouse Coopers as a senior manager in the audit department. He began his career in accounts and taxation at Bowker Orford & Co.

Andrew is a member of the Newton board. He is also a member of the Institute of Chartered Accountants in England and Wales (ACA).

Curt Custard
Executive director

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Curt is responsible for all aspects of Newton’s global investment processes and team. He joined Newton in 2017 to lead the investment teams for the firm, including the portfolio managers, research analysts and the trading function.

Prior to joining Newton Curt was head of the Global Investment Solutions division of UBS Asset Management where he oversaw a 130+ person investment team in five locations. Prior to UBS, Curt held similar investment roles at Schroders and Allianz Global Investors.

Newton Management Limited board

Hanneke Smits
Chief Executive Officer

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Hanneke Smits is the CEO of Newton Investment Management, a role which she assumed in August 2016. Hanneke previously served as a member of the Executive Committee at private equity firm Adams Street Partners from 2001 to 2014, and was its Chief Investment Officer from 2008 to 2014. She joined Adams Street in 1997 to successfully launch its presence in Europe and Asia, and to build out its global investment capabilities. In addition, she was an investment manager at Pantheon Ventures, and worked for Philips China Hong Kong Group.

Hanneke is a member of the Investment Association’s board; she serves as Chair of Impetus-PEF a venture philanthropy organisation which backs charities that aim to transform the lives of disadvantaged young people. She also serves on the board of the Education Endowment Foundation (EEF), founded in 2011 by The Sutton Trust in partnership with Impetus. The EEF provides accessible summaries of educational research to guide teachers on how to use their resources to improve learning outcomes. Hanneke is co-founder, and former Chair, of Level 20, a not-for-profit organisation set up in 2015 to inspire women to join and succeed in the private equity industry.

Originally from the Netherlands, she has a BBA from Nijenrode University and a MBA from the London Business School.

Andrew Downs
Chief Operating Officer

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Andrew is Chief Operating Officer at Newton, overseeing Investment & Client Operations, Investment Management Support & Control, Business Strategy, IT and Projects. He joined Newton in 1994 as Head of Investment Operations, prior to which he worked in PriceWaterhouse Coopers as a senior manager in the audit department. He began his career in accounts and taxation at Bowker Orford & Co.

Andrew is a member of the Newton board. He is also a member of the Institute of Chartered Accountants in England and Wales (ACA).

Greg Brisk
BNY Mellon director

Greg Brisk

In June 2016, Greg became the Head of Investment Management Governance, reporting to CEO Mitchell Harris and responsible for global governance for our Investment Management Boutiques, Distribution Businesses and core Business Groups as well as leading strategic initiatives internationally. In this role Greg has been appointed to many of our Boutique and regional boards, as BNY Mellon’s Investment Management representative, where he will serve as proxy to Mitchell Harris to ensure that Boutique oversight, coordination and needs are being addressed in a timely manner as well as helping oversee the day-to-day interaction with Risk and Compliance.

Prior to this, from January 2013, Greg was the Global Head of Risk and Compliance for Investment Management, an independent control function responsible for all aspects of risk and compliance across all of the asset management and wealth management businesses in BNY Mellon.

From April 2010-2012, Greg was responsible for the regional governance and oversight of BNY Mellon’s Asset Management business outside the U.S. as Chief Operations Officer, International Asset Management. Prior to 2012 he was Chief Operations Officer for BNY Mellon Asset Management International, the international distribution business of the group. Before taking on that role in 2002, he was the European Head of Risk and Compliance for the Mellon Group.

Before joining BNY Mellon in 1999, he worked at the Financial Services Authority as a banking regulator with responsibility for American banks in London. Greg spent his first 17 years working in a variety of roles at the Bank of England.

Responsible investing

Our approach to responsible investment is grounded in the belief that responsible investment is better investment. We aim to optimise performance returns for our clients by investing in well-managed companies. It is our belief that companies that operate in a responsible manner will ultimately benefit shareholders and bondholders over the long term.

Additionally, we have a range of sustainable strategies which aim to achieve their objectives through investing for the long term in securities of companies that demonstrate attractive investment attributes and sustainable business practices and have no material unresolvable environmental, social and governance (ESG) issues.

Responsible Investment

Sponsorship

Newton sponsors a select range of opportunities that reflect our core values of performance, perspective, teamwork and consistency.

Notably, our sponsorship of the Oxford and Cambridge Boat Races has seen some ground-breaking firsts. In 2016, we donated our title sponsorship rights to Cancer Research UK, thereby creating the ‘Cancer Research UK Boat Races’ and giving unprecedented brand awareness to the charity.

Click on the logos below to see how we work with these fantastic organisations.

Cancer Research UK Boat Race

Newton Investment Management and BNY Mellon are proud to sponsor the Oxford and Cambridge Boat Races. Our sponsorship tenure has seen some ground-breaking firsts. Most notably in 2015, we moved the Women’s Boat Race to the Championship Course in London, thus putting it on an equal footing in terms of status and funding with the men’s race. In 2016, in a world first, we donated our title sponsorship rights to Cancer Research UK thereby creating the Cancer Research UK Boat Races, and giving unprecedented brand awareness to Cancer Research UK. In 2017, we focused our efforts on pulling together to raise vital funds for Cancer Research UK in order to help beat cancer sooner. To do this we called for the City to join forces to support Cancer Research UK through a year-long series of fundraising initiatives called CASCAID – this raised over £2.5m.

 

Future Blues

In 2018, BNY Mellon and Newton IM are immensely proud to launch Future Blues, which aims to build a lasting legacy in areas such as upward social mobility, diversity and education. Future Blues is a community outreach project which will support state school participation in rowing in the four London boroughs that border the Boat Race Championship Course. The project will provide state school students who wouldn’t otherwise have had the chance, an opportunity to get involved in the sport. The aim is to increase the total number of school rowing clubs in the UK by 50% with the support of BNY Mellon and Newton.

 

Find out more at the official Boat Race website.


#PullTogether

Newton and BNY Mellon pull together for Cancer Research UK.

 

Royal Academy Schools

 

Highly regarded throughout the world as a centre of excellence, the RA Schools has been an integral part of the Royal Academy of Arts since its foundation in 1768.

The RA Schools’ contemporary fine art postgraduate programme is a three-year, studio-based course, and includes a range of lectures and tutorials from leading contemporary artists, Royal Academicians, critics, writers and theorists. As such, it is invaluable in nurturing the talent and ideas of young artists.

For centuries, the RA Schools has been at the forefront of developing contemporary art practice, with alumni and professors ranging from JMW Turner to Tracey Emin.

At Newton, we value the qualities which are at the heart of the RA Schools: diversity, creativity and the power of ideas to challenge the status quo and inspire innovation. Our sponsorship helps ensure that these qualities continue to thrive, and that the Schools’ students are able to attend on merit alone.

Find out more about the RA Schools. Follow the schools on Facebook and Twitter.

Newton Centre for Endowment Asset Management

 

Based within the University of Cambridge’s Judge Business School, the Centre is dedicated to high quality research that furthers academic knowledge and practitioner understanding of long horizon investing. The Centre’s agenda includes historical perspectives on current investment concerns and research on responsible investment strategies.

 

The Centre publishes regularly in leading academic journals, hosts conferences, and works in collaboration with a number of other leading institutions. It also performs a key educational role, carrying out teaching in the area of long horizon investing, and developing case studies of leading long-term investors to be used for interactive classroom teaching.

 

Newton has been a long-term supporter of the Centre, believing in the importance of academic research and the potential for long-term value creation through bridging the gaps between research, practice and policy. We are delighted to have agreed a new five-year partnership starting in 2014 to enable the Centre to further extend its outstanding research and educational efforts in the area of long horizon investing.

 

Find out more about the Cambridge Judge Business School and the Centre for Endowment Asset Management.

KickStart Money

 

Building foundations for a better financial future

Newton investment Management is proud to be a founding member of a ground-breaking collaborative project called KickStart Money. Newton alongside 19 other leading UK financial services companies and the Tax Incentivised Savings Association (TISA), aim to take financial education to over 18,000 primary school children, catalysing a movement to build a national savings culture for the future.

 

About KickStart Money

Significant proportions of the UK population lack the basic functional skills and knowledge to effectively manage their money. KickStart Money has been developed as a mechanism for the financial services industry to proactively and collectively transform the long term savings behaviour of a generation.

 

With a shared aim of raising over £1 million, KickStart Money is a serious statement of intent by the savings and investment industry and supports calls for financial education to become a compulsory element of the Primary National Curriculum.

 

KickStart Money’s prime delivery partner is the highly respected and award winning financial education charity MyBnk. The project has been recognised by the Money Advice Service as one of 58 winning projects chosen from 400 applications to receive funding as part of their What Works Fund.

 


Kickstarting the project

 

Empowering young people to take charge of their future by bringing money to life.

KickStart Money is delivered by MyBnk, whose programmes have been independently evaluated and proven by the Money Advice Service.

 

Co-designed by young people and complemented by teacher resources and homework challenges, MyBnk uses trained experts from education, finance and drama to deliver sessions that apply learnings to the real world.

 

Sessions include:

  • My Money: Value and importance of money, where money comes from, personal relationship with money.
  • My Choices: Spending, shopping, prioritising, needs and wants, budgeting, self-reflection.
  • My Future: Planning for the future, saving, earning money, money motivation and vision-based goal setting.

 

MyBnk’s unique and engaging activities teach young people to become informed consumers, savvy savers and mindful spenders – by making finance fun.

Our strategies

We help investors across the world to meet their desired investment outcomes by using our responsible, theme-based approach, fundamental research and deep industry experience.

Our solutions include a suite of cost-effective pooled funds designed specifically for charities. We also run a broad range of equity, fixed-income and multi-asset strategies, and have particular expertise in absolute-return, income-focused, high-conviction and sustainable investing.

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