UK Charities Newton Real Return Strategy

Our philosophy and process

  • The strategy is conviction-based, with no regional, sector or performance reference constraints. A constantly evolving and forward-looking approach seeks to anticipate change, manage risk, and identify opportunities.
  • The strategy has a simple structure, with a stable core of predominantly traditional return-seeking assets, and a layer of risk-offsetting positions which aim to dampen volatility and preserve capital.
  • Environmental, social and governance (ESG) considerations are integrated throughout the research process to ensure that any material issues are captured.

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.

Investment team

Our Real Return strategy is managed by an experienced team with a wide range of backgrounds. Our global sector analysts and investment managers are located on a single floor in London, which helps to ensure that the 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.

19
years’ average investment experience
13
years’ average time at Newton
  • Suzanne Hutchins
    Suzanne Hutchins

    Portfolio manager, Real Return team

  • Aron Pataki
    Aron Pataki

    Co-lead, Real Return team

  • Andy Warwick
    Andy Warwick

    Co-lead, Real Return team

  • Lars Middleton
    Lars Middleton

    Portfolio manager, Real Return team

  • Philip Shucksmith
    Philip Shucksmith

    Portfolio manager, Real Return team

  • Matt Brown
    Matt Brown

    Portfolio manager, Real Return team

  • Brendan Mulhern
    Brendan Mulhern

    Global strategist, Real Return team

  • Catherine Doyle
    Catherine Doyle

    Investment specialist

Strategy profile

Objective

The strategy has an absolute-return style performance aim, while seeking to preserve capital, through security selection, diversification and simple hedging strategies

Performance benchmark

The strategy aims to deliver a minimum return of SONIA (30-day compounded) +4% per annum over 5 years before fees.* In doing so, the strategy aims to achieve a positive return on a rolling 3-year basis. However, a positive return is not guaranteed and a capital loss may occur.

* Please note that on 1 October 2021, the performance benchmark for this strategy changed from 1-month GBP LIBOR +4% to SONIA (30-day compounded) +4%.

Literature

Application form
Key Investor Information Document (KIID)
Prospectus
BNY Mellon Real Return Fund factsheet

Fund factsheet

Information on performance and positioning.

Download Factsheet
RI report Real return

Responsible investment report

Stewardship activities (voting and engagement) for the last quarter and ESG metrics.

Download Report
Retail Real Return Brochure

Brochure

More detail on the strategy’s investment brochure

Download Brochure

Quarterly video update: Q2 2021

Quarterly video update
Sustainable Real Return
Video

Sustainable Real Return – quarterly outlook

Phil Shucksmith and Catherine Doyle explain why they view emerging markets as a key area of opportunity.
19 May 2023
Real Return, Sustainable
Real Return
Video

Real Return – quarterly outlook

Andy Warwick and Aron Pataki assess the market outlook and discuss where they see opportunities.
17 May 2023
Macro views, Real Return
Blog

What does net zero mean for portfolios?

We discuss how we are navigating net zero in our portfolios to achieve real-world decarbonisation.
James A Lydotes, Philip Shucksmith
01 February 2023
Global equities, Real Return, Sustainable

Key investment risks

  • The performance aim is not a guarantee, may not be achieved and a capital loss may occur. Strategies which have a higher performance aim generally take more risk to achieve this and so have a greater potential for the returns to be significantly different than expected.
  • This strategy invests in international markets which means it is exposed to changes in currency rates which could affect the value of the strategy.
  • The strategy may use derivatives to generate returns as well as to reduce costs and/or the overall risk of the strategy. Using derivatives can involve a higher level of risk. A small movement in the price of an underlying investment may result in a disproportionately large movement in the price of the derivative investment.
  • Investments in bonds are affected by interest rates and inflation trends which may affect the value of the strategy.
  • The strategy holds bonds with a low credit rating that have a greater risk of default. These investments may affect the value of the strategy.
  • The strategy may invest in emerging markets. These markets have additional risks due to less developed market practices.
  • The strategy may invest in investments that are not traded regularly and are therefore subject to greater fluctuations in price.