Newton Global Dynamic Bond Income Strategy

Strategy highlights

: An actively managed fixed-income strategy, with flexibility at the asset-allocation level
Focus on delivering sustainable income with monthly distributions
Flexibility to manage currency exposure actively to generate additional returns

Our philosophy and process

: The strategy aims to deliver sustainable income by investing opportunistically in a broad universe of bonds – principally government bonds, emerging-market sovereigns, high-yield bonds and investment-grade corporate debt. The strategy will seek to take advantage of the changing economic cycle by altering the weightings of these broad fixed-income asset classes while always maintaining some exposure to higher-yielding assets in pursuit of its income objective.; A constantly evolving and forward-looking approach seeks to anticipate change, manage risk, and identify opportunities. Material ESG risks, opportunities and issues are considered as part of the investment research 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.

Investment team

Our Global Dynamic Bond Income strategy is managed by a focused, experienced fixed-income team. Our investment team of research analysts and portfolio managers works together across regions and sectors, helping to ensure that our investment process is highly flexible. Guided by our global investment themes, we seek to identify opportunities and risks through research and debate.

21: years’ average investment experience
14: years’ average time at Newton

Paul Brain

Investment leader, fixed income
Howard Cunningham

Portfolio manager, fixed income
Parmeshwar Chadha

Portfolio manager, fixed income
Jon Day

Portfolio manager, fixed income
Carl Shepherd

Portfolio manager, fixed income
Trevor Holder

Portfolio manager, fixed income
Scott Freedman

Analyst and portfolio manager, fixed income
Martin Chambers

Credit analyst, fixed income
Ashwin Palta

Credit research analyst, fixed income
Jeevan Dhoot

Credit analyst, fixed income

Strategy profile

Objective: The strategy seeks to achieve income over the medium term (3-5 years).
Literature: Key Investor Information Document (KIID)
Prospectus

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.

Newton will make investment decisions that are not based solely on ESG considerations. Other attributes of an investment may outweigh ESG considerations when making investment decisions. The way that ESG considerations are assessed may vary depending on the asset class and strategy involved. The research team performs ESG Quality Reviews on equity securities prior to their addition to Newton’s Research Recommended List (RRL). ESG Quality Reviews are not performed for all fixed income securities. The portfolio managers may purchase equity securities that are not included on the RRL and which do not have ESG Quality Reviews. Not all securities held by Newton’s strategies have an ESG Quality Review completed prior to investment, although since 2020 it has been a requirement for all (single name) equity securities to have an ESG Quality Review before they are purchased for the first time.

Key investment risks

: Objective/performance risk: There is no guarantee that the strategy will achieve its objectives.
Currency risk: This strategy invests in international markets which means it is exposed to changes in currency rates which could affect the value of the strategy.
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 strategy 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 strategy.
Credit ratings and unrated securities risk: Bonds with a low credit rating or unrated bonds have a greater risk of default. These investments may negatively affect the value of the strategy.
Credit risk: The issuer of a security held by the strategy may not pay income or repay capital to the strategy when due.
Emerging markets risk: Emerging Markets have additional risks due to less-developed market practices.
CoCos risk: Contingent convertible securities (CoCos) convert from debt to equity when the issuer’s capital drops below a pre-defined level. This may result in the security converting into equities at a discounted share price, the value of the security being written down, temporarily or permanently, and/or coupon payments ceasing or being deferred.
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 strategy to financial loss.