Our philosophy and process

  • The strategy follows an unconstrained, highly dynamic asset-allocation approach within a broad universe of global bonds; it can invest in government, emerging-market, high-yield and corporate bonds. The strategy has the flexibility to manage currency exposure actively to generate additional returns.
  • Environmental, social and governance (ESG) considerations are integrated throughout the research process and via proprietary quality reviews, 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.

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.

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.

Investment team

Our Global Dynamic Bond strategy is managed by a focused, experienced fixed-income team. 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.

20
years' average investment experience
13
years' average time at Newton

Strategy profile

Objective

To maximise the total return from a globally diversified portfolio, predominantly comprising high-yielding corporate and government bonds

Performance aim

Aims to deliver a minimum return of cash (one-month sterling LIBOR) +2% 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.

Literature

Application form
Key Investor Information Document (KIID)
BNY Mellon Global Dynamic Bond Fund factsheet

Fund factsheet

Information on performance and positioning.

Performance

 

Sept 2014 to
Sept 2015
Sept 2015 to
Sept 2016
Sept 2016 to
Sept 2017
Sept 2017  to
Sept 2018
Sept 2018 to
Sept  2019
BNY Mellon Global
Dynamic Bond Fund
0.644.621.63-0.665.89
Performance benchmark2.502.512.312.532.73

 

Source: Newton, as at 30 September 2019, Newton Institutional Shares 2 (Accumulation) share class (ISIN: GB00B1294G50). Fund performance calculated as total return including reinvested income net of UK tax and charges, based on net asset value. All figures are in GBP terms. The impact of an initial charge (currently not applied) can be material on the performance of your investment. Further information is available upon request. The Fund is managed to seek a minimum return of cash (one-month GBP LIBOR) +2% per annum over five years before fees. In doing so, it aims to achieve a positive return on a rolling three-year basis (meaning a period of three years, no matter which day you start on). However, a positive return is not guaranteed and a capital loss may occur. The Fund uses sterling cash (1-month GBP LIBOR) +2% per annum over five years before fees as a target set for the Fund’s performance to match or exceed. The ACD considers 1-month GBP LIBOR +2% per annum over five years before fees to be an appropriate target because 1-month GBP LIBOR is representative of cash and the Fund’s investment objective is to seek a minimum return of sterling cash +2% per annum. Please note, performance for periods of less than five years is measured versus 1-month GBP LIBOR.

Past performance is not a guide to future performance. 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. This Fund invests in international markets which means it is exposed to changes in currency rates which could affect the value of the Fund. Investments in bonds/money market securities are affected by interest rates and inflation trends which may negatively affect the value of the Fund. Bonds with a low credit rating or unrated bonds have a greater risk of default. These investments may negatively affect the value of the Fund. You should read the Prospectus and the Key Investor Information Document (KIID) for each fund in which you want to invest. The Prospectus and the KIID can be found at fund literature page.

Important information
This is a financial promotion.
The opinions expressed in this document are those of Newton and should not be construed as investment advice or any other advice and are subject to change. This video is for information purposes only and does not constitute an offer or solicitation to invest. Any reference to a specific security, country or sector should not be construed as a recommendation to buy or sell investments in those countries or sectors. Please note that portfolio holdings and positioning are subject to change without notice. Issued in the UK by Newton Investment Management Limited, The Bank of New York Mellon Centre, 160 Queen Victoria Street, London, EC4V 4LA. Registered in England No. 01371973. Newton Investment Management is authorised and regulated by the Financial Conduct Authority, 12 Endeavour Square, London, E20 1JN.

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.