Investment approaches
Global Dynamic Bond
A dynamic, absolute-return approach to bond investing, designed to deliver performance and preserve capital
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Bond asset-class exposure managed dynamically and driven by market opportunities and risks, unconstrained by an index
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The flexibility to use stabilising assets and hedging positions to provide downside protection and preserve capital
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Investing globally to provide diversification and take advantage of the divergence between the prospects of different countries
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.
- 19
- years’ average investment experience
- 12
- years’ average time at Newton
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Paul Brain
Investment leader, fixed income
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Jon Day
Portfolio manager, fixed income
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Parmeshwar Chadha
Portfolio manager, fixed income
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Howard Cunningham
Portfolio manager, fixed income
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Carl Shepherd
Portfolio manager, fixed income
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Trevor Holder
Portfolio manager, fixed income
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Scott Freedman
Analyst and portfolio manager, fixed income
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Martin Chambers
Credit analyst, fixed income
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Ashwin Palta
Credit research analyst, fixed income
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Jeevan Dhoot
Credit analyst, fixed income
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Catherine Doyle
Investment specialist
Strategy profile
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Objective
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To maximise the total return from a globally diversified portfolio, predominantly comprising high-yielding corporate and government bonds
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Performance benchmark
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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.
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Literature
Fund factsheet
Information on performance and positioning.
Responsible investment report
Stewardship activities (voting and engagement) for the last quarter and ESG metrics.
Quarterly video update: Q3 2020
Key investment risks
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- 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.