Investment approaches
SRI Fund for Charities
A straightforward and tax-efficient solution for ethically minded charity investors who wish to maximise returns through capital growth and income
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Directly invested to ensure adequate transparency and reassurance to investors that ethical considerations are being addressed across the entire portfolio
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A robust ethical screen which has been developed in response to investor demand
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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 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.
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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
- 18
- years’ average time at Newton
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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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Oliver Larminie
Portfolio manager, charities and specialist institutions
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Hilary Meades
Portfolio manager, multi-asset team
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Simon Nichols
Portfolio manager, UK equities
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Alison El-Araby
Portfolio manager, multi-asset team
Strategy profile
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Objective
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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.
* Please note that on 1 October 2021, part of the benchmark changed from 5% LIBID GBP 7-Day to 5% SONIA (7-day compounded).
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. -
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Literature
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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.
Responsible investment report
Stewardship activities (voting and engagement) for the last quarter and ESG metrics.
Brochure
More detail on the strategy’s investment approach.
