Sustainable Growth and Income Investment Fund for Charities

Strategy highlights

: A focus on capital growth and income by investing in issuers that demonstrate sustainable business or operating practices (i.e. that positively manage the material impacts of an issuer’s operations and products on the environment and society)

A cost-effective method of gaining exposure to equities and fixed income securities

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

Our philosophy and process

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.

The Fund has four areas of focus

Structural growth from providing solutions to environmental or social challenges
Manages well social and environmental factors to generate sustainable returns
Recognises issues and adapting business model to reverse harm
Actively omitting companies involved in areas of high social cost, environmental degradation or violators of the UN Global Compact Principles

: Our sustainable ‘red lines’ are built on a combination of exclusions that effectively avoid investments in security issuers involved in or that generate a material proportion of revenues from areas of activity that we deem to be harmful from a social and/or environmental perspective.

Investment team

The Newton Sustainable Growth and Income Fund for Charities is managed by a highly 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.

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

Alison El-Araby

Portfolio manager, multi-asset team
Bhavin Shah

Portfolio manager, multi-asset team
Hilary Meades

Head of charities investment
Simon Nichols

Portfolio manager, Global Opportunities team
Paul Flood

Head of mixed assets investment
Janice Kim

Portfolio manager, multi-asset team

Strategy profile

Objective: The Fund aims to generate capital growth and income over the long term (5 years or more).
Performance benchmark: The Fund will measure its performance against a composite index, comprising 75% MSCI AC World NR 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
Prospectus
Annual report & accounts
Sterling Accumulation KIID
Sterling Income KIID
X 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

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.

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.

Newton will make investment decisions that are not based solely on ESG considerations. Other attributes of an investment may outweigh ESG considerations when making investment decisions. The way that ESG and sustainability considerations are assessed and the assessment of their suitability for Newton’s sustainable strategies may vary depending on the asset class and strategy involved. For Newton’s sustainable strategies, ESG reviews are performed prior to investment for corporate investments (single name equity and fixed income securities). The analysis will then also follow the Newton sustainable investment process to ensure it fits with the wider Newton sustainable investment philosophy.

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.

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 Fund 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 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.

Sustainable risk: The Fund follows a sustainable investment approach, which may cause it to perform differently to strategies that have similar objectives but which do not integrate sustainable investment criteria when selecting securities.