Newton Investment Management (“Newton IM”) today unveils a new fund, the Newton Sustainable Real Return Fund (“Fund”), for UK institutional and retail1 investors, including the charity sector.
Newton IM is the investment manager for the Fund, which is a sub-fund of the BNY Mellon Investment Funds range. This is the latest fund in Newton IM’s sustainable offering, which builds on a multi-decade pedigree in responsible investing. The Fund follows the launch of Newton Sustainable Global Equity Fund for UK investors in January 2018.
The Newton Sustainable Real Return Fund is co-managed by Phil Shucksmith and Matthew Brown. It is a targeted absolute return fund investing in a portfolio of global securities.
The Fund aims to achieve its objective through investing for the long term in securities of companies that demonstrate attractive investment attributes and sustainable business practices, and that have no material unresolvable environmental, social and governance (ESG) issues.
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 are not aligned with the UN Global Compact Principles or the principnowles of a ‘2-degree’ world).
- Investing in companies that 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 with 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.
The Fund seeks a minimum return of cash (1-month GBP Libor) + 4% per annum over five years before fees. In so doing, it aims to achieve a positive return on a rolling three-year basis.2
Julian Lyne, Chief Commercial Officer at Newton IM, said:
Responsible investment has been core to our approach at Newton for the last 40 years, grounded in our belief that responsibly managed companies are best placed to achieve a sustainable competitive advantage and strong long-term investment opportunitiesJulian Lyne, Chief Commercial Officer
This launch is part of the strategy to build out our sustainable offering, responding to the increased interest in responsible investing we are seeing globally. From DC & DB pension plans and charity clients, many are seeing the importance of sustainable investing, and looking for compelling investment capabilities. The benefits of sustainable funds, not just for the positive impact it has on the environment and society, but also as a necessary consideration for positive long-term returns and risk mitigation, is becoming increasingly entrenched in the minds of investors.
The Newton Sustainable Real Return Fund is part of the BNY Mellon Investment Funds range. It is registered for distribution in the UK.
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.
BNY Mellon is a global investments company dedicated to helping its clients manage and service their financial assets throughout the investment lifecycle. Whether providing financial services for institutions, corporations or individual investors, BNY Mellon delivers informed investment management and investment services in 35 countries. As of March 31, 2018, BNY Mellon had $33.5 trillion in assets under custody and/or administration, and $1.9 trillion in assets under management. BNY Mellon can act as a single point of contact for clients looking to create, trade, hold, manage, service, distribute or restructure investments. BNY Mellon is the corporate brand of The Bank of New York Mellon Corporation (NYSE: BK). Additional information is available on www.bnymellon.com. Follow us on Twitter @BNYMellon or visit our newsroom at www.bnymellon.com/newsroom for the latest company news.
All information sourced by BNY Mellon as of 25 April 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
1 Retail share classes are available upon request.
2 However, a positive return is not guaranteed and a capital loss may occur.