Our philosophy and process

  • The Fund has a policy of no direct investment in companies which derive more than 10% turnover from tobacco.
  • 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

The Newton Growth and Income Fund for Charities 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.

30
years’ average investment experience
19
years’ average time at Newton
  • Simon Nichols
    Simon Nichols

    Portfolio manager, Global Opportunities team

  • Hilary Meades
    Hilary Meades

    Portfolio manager, multi-asset team

  • Oliver Larminie
    Oliver Larminie

    Portfolio manager, charities and specialist institutions

  • Bhavin Shah
    Bhavin Shah

    Portfolio manager, multi-asset team

  • Rob Stewart
    Rob Stewart

    Portfolio manager, multi-asset team

  • Alison El-Araby
    Alison El-Araby

    Portfolio manager, multi-asset team

Strategy profile

Objective

The Fund aims to generate capital growth and income growth over a period of 5-7 years by investing at least 70% of the Fund’s assets in a global portfolio of equities (company shares) and fixed-income securities.

A composite index comprising 50% FTSE All-Share Index, 25% FTSE World ex UK Index, 20% FTSE Actuaries UK Conventional Gilts All Stocks Index and 5% SONIA (7-day compounded),* is used as a comparator benchmark (the ‘Benchmark’). The Fund will use the Benchmark as an appropriate comparator because it includes a broad representation of the asset classes, sectors and geographical areas in which the Fund predominantly invests. The Fund is actively managed, which means the Investment Manager has absolute discretion to invest outside the Benchmark subject to the investment objective and policies disclosed in the Prospectus. While the Fund’s holdings may include constituents of the Benchmark, the selection of investments and their weightings in the portfolio are not influenced by the Benchmark. The investment strategy does not restrict the extent to which the Investment Manager may deviate from the Benchmark.

* Please note that on 1 October 2021, part of the benchmark changed from 5% LIBID GBP 7-Day to 5% SONIA (7-day compounded).

Literature

Application form
Prospectus
Annual report & accounts
Sterling Accumulation KIID
Sterling Income KIID
X Accumulation KIID
X Income KIID

Char Growth and Income Fund for Charities factsheet

Fund factsheet

Information on performance and positioning.

Download Factsheet
RI report Growth and income fund for charities

Responsible investment report

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

Download Report
Char Growth and Income Fund for Charities brochure

Brochure

More detail on the strategy’s investment approach.

Download Brochure
Laser, Light, Lighting
Article

Sustainable portfolio ‘withdrawal rates’ for charities

How much can charities withdraw from their endowment to spend on good works, while leaving the remaining endowment protected from the effects of inflation?
27 June 2022
Macro views, Multi-asset
Video

A fast-changing world for charities

Learn about what has happened to income and the opportunities in charity portfolios
22 June 2022
Macro views, Multi-asset
Streaming to success
Blog

Streaming to success

The music industry has returned to growth thanks to the rise of streaming. Can the momentum be maintained?
Connor Middleton
22 June 2022
Industry views, Multi-asset, Themes

Key investment risks

  • Objective/performance risk: There is no guarantee that the Fund will achieve its objectives.
  • Currency risk: This Fund invests in international markets which means it is exposed to changes in currency rates which could affect the value of the Fund.
  • 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 Fund 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 Fund.
  • Credit risk: The issuer of a security held by the Fund may not pay income or repay capital to the Fund when due.
  • Charges to capital: The Fund takes its charges from the capital of the Fund. Investors should be aware that this has the effect of lowering the capital value of your investment and limiting the potential for future capital growth. On redemption, you may not receive back the full amount you initially invested.
  • 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 Fund to financial loss