Our philosophy and process

  • The strategy is conviction based, with no regional or sector constraints. Portfolios tend to hold stocks of cash-generative companies with highly attractive dividend yields.
  • 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.

Smart revolution

Machines and networks are becoming more intelligent. This is disrupting the labour market, as machines increasingly replace humans in the workplace. ‘Smart revolution’ considers the implications commercially, socially and politically.

Net effects

The world has made the transition from connecting places to connecting people to connecting devices. The rapid rise in the ‘internet of things’ is transforming lifestyles and business. This creates winners and losers – our ‘net effects’ theme seeks to identify them.

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 Equity Income strategy is managed by an experienced 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.

17
years' average investment experience
13
years' average time at Newton
  • Ilga Haubelt
    Ilga Haubelt

    Head of Equity Income

  • Robert Hay
    Robert Hay

    Portfolio manager, global equity income

  • Paul Flood
    Paul Flood

    Portfolio manager, global equity income

  • Jon Bell
    Jon Bell

    Portfolio manager, global equity income

  • Zoe Kan
    Zoe Kan

    Portfolio manager, emerging and Asian equity income

  • Nick Pope
    Nick Pope

    Junior portfolio manager

Strategy profile

Objective

To generate distributions over an annual period together with long-term capital growth from investing predominantly in global securities.

Yield discipline

Every new holding in a global equity income portfolio typically has a prospective yield 25% greater than the index at the point of purchase. Any holding whose prospective yield falls below the comparative index yield will trigger our sale discipline process.*

*In order to prevent the portfolio from being unable to buy or being a forced seller of securities that have suspended their dividend purely owing to the Covid-19 situation, a new additional buy and sell discipline basket has been created specifically for such securities, which temporarily overrides the strategy’s security-level yield-based disciplines. Securities falling into this basket may be purchased or continue to be held providing there is a reasonable expectation that any dividends will be reinstated at a level consistent with the strategy’s yield criteria. The rationale for each affected security will be reviewed at least every six months.

Literature

Application form
Key Investor Information Document (KIID)
BNY Mellon Global Equity Income Fund factsheet

Fund factsheet

Information on performance and positioning.

Download Factsheet
RI report Global equity income

Responsible investment report

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

Download Report
ESG: On the radar of the tech giants
Blog

ESG: On the radar of the tech giants

As the world slowly emerges from the pandemic, we assess the technology sector’s shifting attitudes to ESG issues.
Catherine Doyle
03 July 2020
Global equities, Real Return, Responsible investment, Sector research, Sustainable
Harnessing themes for long-term investment returns
Article

Harnessing themes for long-term investment returns

How we try to cut through the near-term noise to find long-term growth stories.
13 May 2020
Global equities, Sector research
Our purpose
Blog

Covid-19: Looking beyond the pandemic

How will society and the global economy fare once the coronavirus pandemic begins to dissipate?
Paul Markham
23 April 2020
Coronavirus, Global equities, Sector research

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.

Key investment risks

 

  • There is no guarantee that the strategy will achieve its objective.
  • 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.
  • The strategy invests in emerging markets. These markets have additional risks due to less developed market practices.
  • A fall in the value of a single investment may have a significant impact on the value of the strategy because it typically invests in a limited number of investments.
  • The strategy may invest in small companies which may be riskier and less liquid (i.e. harder to sell) than large companies. This means that their share prices may have greater fluctuations.