Strategy highlights

  • Fundamental, active and flexible – directly invested portfolio aiming to deliver strong risk-adjusted returns with an asymmetric profile
  • Controlling risk through diversification at both asset class and security level, investing in attractively valued securities across equities, bonds and alternatives
  • Absolute-return approach focusing on capital preservation – allowing investors potential to benefit from compounding and time
  • Security selection driven by bottom-up proprietary research which is underpinned by our multidimensional approach
Learn more about our multidimensional investment philosophy

Strategy profile

Objective

The strategy seeks to achieve long-term capital growth over a period of at least 5 years from a portfolio diversified across a range of assets. The strategy is managed to seek a return in excess of cash (SONIA (30-day compounded)) + 3% 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.

Performance benchmark

SONIA (30-day compounded) +3%*

Typical number of holdings

Minimum 120

Volatility

Expected to be between that of bonds and equities over the long term

Literature

Application form
Key Investor Information Document (KIID)
Prospectus


* Please note that on 1 October 2021, the performance benchmark for this strategy changed from 1-month GBP LIBOR +3% to SONIA (30-day compounded) +3%.

Investment team

The strategy is managed by an experienced team with a wide range of backgrounds. In-house research analysts are at the core of our investment process, and our multidimensional research capabilities help to promote better-informed investment decisions.

Want to find out more?

Contact us
Paul Flood
Paul Flood

Head of Mixed Assets Investment

Bhavin Shah
Bhavin Shah

Portfolio manager, Mixed Assets Investment team

Janice Kim
Janice Kim

Associate Portfolio manager, Mixed Assets team

Hilary Meades
Hilary Meades

Head of Charities Investment

Simon Nichols
Simon Nichols

Portfolio manager, Global Opportunities team

Mathieu Poitrat Rachmaninoff
Mathieu Poitrat Rachmaninoff

Portfolio manager, Mixed Assets and Charities team

Michael Spinks
Michael Spinks

Portfolio manager, Mixed Assets and Charities team

Insights

Blog

UK inflation and interest rates: A five-year view

We evaluate the policy-setting environment, bond market expectations and structural considerations to give our inflation forecast.
14 February 2025 Michael Spinks, Howard Cunningham
Blog

Charities investment outlook 2025: Building financial resilience

We consider the investment outlook, withdrawal rates and income against a backdrop of growing demand for charities’ services.
09 January 2025 Janice Kim, Hilary Meades
Blog

Real Return outlook 2025: Opportunities in a new market regime

Amid developments in the US and China and continued excitement around AI, we assess the investment outlook.
11 December 2024 Newton Real Return team

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.

ESG can be one of many inputs into the fundamental analysis. Newton will make investment decisions that are not based solely on ESG analysis. Other attributes of an investment may outweigh ESG analysis when making investment decisions. The way that material ESG analysis is assessed may vary depending on the asset class and strategy involved. As of September 2022, the equity investment team performs ESG analysis on equity securities prior to their recommendation. ESG analysis is not performed for all fixed-income securities. The portfolio managers may purchase equity securities that are not formally recommended and for which ESG analysis has not been performed.

Key investment risks

  • Objective/Performance risk: There is no guarantee that the strategy will achieve its objectives.
  • Performance aim risk: 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 returns to vary significantly.
  • Currency risk: This strategy invests in international markets which means it is exposed to changes in currency rates which could affect the value of the strategy.
  • 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 strategy 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 strategy.
  • Credit ratings and unrated securities risk: Bonds with a low credit rating or unrated bonds have a greater risk of default. These investments may negatively affect the value of the strategy.
  • Credit risk: The issuer of a security held by the strategy may not pay income or repay capital to the strategy when due.
  • Emerging Markets Risk: Emerging Markets have additional risks due to less-developed market practices.
  • Shanghai-Hong Kong Stock Connect and/or the Shenzhen-Hong Kong Stock Connect (‘Stock Connect’) risk: The strategy may invest in China A shares through Stock Connect programmes. These may be subject to regulatory changes and quota limitations. An operational constraint such as a suspension in trading could negatively affect the strategy’s ability to achieve its investment objective.
  • China Interbank Bond Market and Bond Connect risk: The strategy may invest in China interbank bond market through connection between the related Mainland and Hong Kong financial infrastructure institutions. These may be subject to regulatory changes, settlement risk and quota limitations. An operational constraint such as a suspension in trading could negatively affect the strategy’s ability to achieve its investment objective.
  • CoCos risk: Contingent Convertible Securities (CoCos) convert from debt to equity when the issuer’s capital drops below a pre-defined level. This may result in the security converting into equities at a discounted share price, the value of the security being written down, temporarily or permanently, and/or coupon payments ceasing or being deferred.
  • 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 strategy to financial loss.
  • Investment in infrastructure companies risk: The value of investments in Infrastructure Companies may be negatively impacted by changes in the regulatory, economic or political environment in which they operate.