Socially Responsible Investment Fund for Charities

Strategy highlights

: Directly invested to ensure adequate transparency and reassurance to investors that specific considerations regarding the avoidance of certain areas of activity are being addressed across the entire portfolio

A robust exclusionary screen which has been developed by Newton in response to investor demand

The Fund’s structure means that the Fund’s annual management charge is not currently subject to VAT

Our philosophy and process

: The portfolio is global and diversified, supported by thorough fundamental analysis. Material and relevant ESG risks, issues and opportunities are considered as part of the investment process.

The Fund combines Newton’s global investment management experience with an understanding of charities’ ethical requirements.

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 themes to help identify opportunities.

Investment team

The Newton SRI Fund for Charities is managed by an experienced team. In-house research analysts are at the core of our investment process, and our multidimensional research platform spans fundamental, thematic, ESG, quantitative, geopolitical, investigative and private-market research to promote better-informed investment decisions.

25: years’ average investment experience
15: years’ average time at Newton

Bhavin Shah

Portfolio manager, Mixed Assets Investment team
Alison El-Araby

Portfolio manager, Charities Investment team
Hilary Meades

Head of Charities Investment
Simon Nichols

Portfolio manager, Global Opportunities team
Paul Flood

Head of Mixed Assets Investment
Janice Kim

Associate Portfolio manager, Mixed Assets team

Strategy profile

Objective: The objective of the Fund is to achieve a balance between capital growth and income for charity investors over the long term – 5 years or more.
Performance benchmark: The Fund will measure its performance against a composite index, comprising 37.5% FTSE All-Share TR Index, 37.5% FTSE World ex UK TR Index, 20% FTSE Actuaries UK Conventional Gilts All Stocks TR Index and 5% SONIA (7-day compounded),* 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 (incorporated)
Application form (unincorporated)
Prospectus
Annual report & accounts
Fund screening criteria
Sterling Income KIID
Sterling Accumulation KIID
X Net Accumulation KIID
X Net Income KIID

Fund factsheet

Information on performance and positioning.

Download Factsheet

Responsible investment report

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

Download Report

Brochure

More detail on the strategy’s investment brochure

Download Brochure

Tax treatment depends on the individual circumstances of each client and may be subject to change in the future. Newton is not a tax expert and independent tax advice should be sought.

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.

Newton will make investment decisions that are not based solely on ESG considerations. It is one of many inputs into the fundamental analysis. Other attributes of an investment may outweigh ESG considerations when making investment decisions. The way that material ESG considerations are assessed may vary depending on the asset class and strategy involved. As of September 2022, the research team performs ESG analysis on equity securities prior to their addition to Newton’s Research Recommended List (RRL). ESG reviews are not performed for all fixed income securities. The portfolio managers may purchase equity securities that are not included on the RRL and which do not have ESG reviews. Not all securities held by Newton’s strategies have an ESG review completed prior to investment.

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.

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