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 and via proprietary quality reviews, 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.
- 26
- years' average investment experience
- 15
- years' average time at Newton
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Bhavin Shah
Portfolio manager, multi-asset team
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Rob Stewart
Head of responsible investment research
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Freeman Le Page
Alternatives investment analyst and SRI client director
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Paul Flood
Portfolio manager, multi-asset team
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Charles French
Deputy chief investment officer
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Oliver Larminie
Portfolio manager, charities and specialist institutions
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Joo Hee Lee
Multi-Asset Solutions manager
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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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Tim Wilson
Head of global strategy
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.
A composite index comprising 37.5% FTSE All-Share Index, 37.5% 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 (incorporated)
Application form (unincorporated)
Prospectus
Fund screening criteria
Interim Reports and Accounts
Sterling Income KIID
Sterling Accumulation KIID
X Net Accumulation 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: Q1 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.
- 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
- Objective/performance risk: There is no guarantee that the Fund will achieve its objectives.