Investment approaches
Growth and Income Fund for Charities
A straightforward and tax-efficient solution for charity investors who wish to maximise returns through capital growth and income
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A cost-effective method of gaining global exposure to a variety of asset classes
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Aims to maximise returns through capital growth and income
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Restricted to charity investors in order to secure the appropriate taxation arrangements from which charities may benefit
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 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.
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.
- 28
- years' average investment experience
- 16
- years' average time at Newton
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Simon Nichols
Portfolio manager, UK equities
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Hilary Meades
Portfolio manager, multi-asset team
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Oliver Larminie
Portfolio manager, charities and specialist institutions
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Freeman Le Page
Alternatives investment analyst and SRI client director
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Joo Hee Lee
Multi-Asset Solutions manager
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Bhavin Shah
Portfolio manager, multi-asset team
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Rob Stewart
Portfolio manager, multi-asset team
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Tim Wilson
Portfolio manager, multi-asset team
Strategy profile
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Objective
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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% LIBID GBP 7 Day is used as a comparator against which to measure the performance of the Fund. The portfolio holdings of the Fund will not be limited to components of this index and the investment manager will use its discretion to invest outside the index in pursuit of the Fund’s investment objective. The authorised corporate director considers the composite index to be an appropriate comparator because it includes a broad representation of the asset classes, sectors and geographical areas in which the Fund predominantly invests.
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Literature
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Application form
Prospectus
Interim Reports and Accounts
Sterling Accumulation KIID
Sterling Income KIID
X Accumulation KIID
X Income KIID
Fund factsheet
Information on performance and positioning.
Responsible investment report
Stewardship activities (voting and engagement) for the last quarter and ESG metrics.
Brochure
More detail on the strategy's investment approach.
Quarterly video update: Q2 2020
Key investment risks
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- 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