Our philosophy and process

  • The portfolio is global and diversified, supported by thorough fundamental analysis. Environmental, social and governance (ESG) considerations are integrated throughout the research process to ensure that any material issues are captured.
  • 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 a range of global investment themes to capture these.

Investment team

The Newton SRI 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

Strategy profile

Objective

The objective of the Fund is to optimise the total return (being a combination of capital growth and income) for charity investors, through a global and balanced portfolio screened against negative socially responsible investment criteria. The Fund is actively managed, investing in equities and fixed interest securities on a global basis with the aim of providing a balance between capital growth and income.

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

Char SRI Fund for Charities factsheet

Fund factsheet

Information on performance and positioning.


RI report SRI fund for charities

Responsible investment report

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


Char SRI Fund for Charities brochure

Brochure

More detail on the strategy’s investment approach.

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