Investment Management for UK Institutional Investors

WARNING: Criminals frequently masquerade as authorised investment firms to defraud investors
We would like to draw your attention to attempted investment frauds which misuse the Newton name.

Learn more >

About Newton

Newton’s story is one of purpose – to improve people’s lives by investing in a way that strives to deliver attractive outcomes to our clients and to help foster a healthy and vibrant world for all.

Find out more

Featured strategies

We focus on delivering outcomes for our clients across equity opportunities, income, absolute return (including fixed income), multi-asset, thematic and sustainable strategies.

Strategy highlights

: Actively managed, absolute-return investment approach, with an emphasis on capital preservation
A focus on security selection, asset class flexibility and simple hedging strategies – to manage risk and offer investors the potential to enjoy attractive long-term total returns
Flexible, transparent, single portfolio of predominantly direct and liquid investments

Our philosophy and process

The Real Return strategy has a simple structure, with a stable core of predominantly traditional return-seeking assets, and a layer of risk-offsetting positions which aim to dampen volatility and preserve capital. Material ESG (environmental, social and governance) risks, opportunities and issues are considered as part of the investment research process.
The strategy is conviction-based, with no regional, sector or performance reference constraints. A constantly evolving and forward-looking approach seeks to anticipate change, manage risk, and identify opportunities.

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

Our Real Return strategy is managed by an experienced team with a wide range of backgrounds. Our investment team of research analysts and portfolio managers works together across regions and sectors, helping to ensure that our investment process is highly flexible. Guided by our global investment themes, we seek to identify opportunities and risks through research and debate.

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

Suzanne Hutchins

Portfolio manager, Real Return team
Aron Pataki

Portfolio manager, Real Return team
Andy Warwick

Portfolio manager, Real Return team
Philip Shucksmith

Portfolio manager, Real Return team
Matt Brown

Portfolio manager, Real Return team
Lars Middleton

Portfolio manager, Real Return team
Brendan Mulhern

Global strategist, Real Return team
Catherine Doyle

Investment specialist
Chris King

Investment team support

Strategy profile

Objective: The strategy aims to deliver a total return of SONIA (30-day compounded) +4% per annum over 5 years before fees. In doing so, the strategy aims to achieve a positive return on a rolling 3-year basis. However, a positive return is not guaranteed and a capital loss may occur.
Performance benchmark: SONIA (30-day compounded) +4%*
Volatility: Expected to be between that of bonds and equities over the long term
Strategy size: £11.9bn (as at 30 Sept 2022), including GBP, EUR, USD and AUD strategies
Strategy inception: Composite inception: 1 April 2004
Typical assets: Selective exposure to

Equities
Corporate bonds
Government bonds
Cash derivatives; Other assets via tradeable securities

Real estate
Commodities
Currencies
Infrastructure
Renewable energy
Other ‘alternative’ strategies

Strategy available through pooled UK vehicle: BNY Mellon Real Return Fund

View fund performance
View Key Investor Information Document
View prospectus
: * Please note that on 1 October 2021, the performance benchmark for this strategy changed from 1-month GBP LIBOR +4% to SONIA (30-day compounded) +4%.

Strategy factsheet

Performance and commentary for the last quarter.

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 approach.

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.

ESG analysis may vary depending on the type of security, investment rationale and investment strategy. Newton does not currently view certain types of investments as presenting ESG risks, opportunities and/or issues, and believes it is not practicable to evaluate such risks, opportunities and/or issues for certain other investments. In addition, Newton will make investment decisions that are not based solely on ESG considerations. In some cases, therefore, Newton may conclude that other attributes of an investment outweigh ESG considerations when making investment decisions.

Key investment risks

: Performance aim risk: The performance aim is not a guarantee, may not be achieved and a capital loss may occur. Strategies which have a higher performance aim generally take more risk to achieve this and so have a greater potential for returns to vary significantly.
Currency risk: This strategy invests in international markets which means it is exposed to changes in currency rates which could affect the value of the strategy.
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 strategy 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 strategy.
Credit ratings and unrated securities risk: Bonds with a low credit rating or unrated bonds have a greater risk of default. These investments may negatively affect the value of the strategy.
Credit risk: The issuer of a security held by the strategy may not pay income or repay capital to the strategy when due.
Emerging markets risk: Emerging Markets have additional risks due to less-developed market practices.
Liquidity risk: The strategy may not always find another party willing to purchase an asset that the strategy wants to sell which could impact the strategy’s ability to sell the asset or to sell the asset at its current value.
Shanghai-Hong Kong Stock Connect and/or the Shenzhen-Hong Kong Stock Connect (‘Stock Connect’) risk: The strategy may invest in China A shares through Stock Connect programmes. These may be subject to regulatory changes and quota limitations. An operational constraint such as a suspension in trading could negatively affect the strategy’s ability to achieve its investment objective.
CoCos risk: Contingent convertible securities (CoCos) convert from debt to equity when the issuer’s capital drops below a pre-defined level. This may result in the security converting into equities at a discounted share price, the value of the security being written down, temporarily or permanently, and/or coupon payments ceasing or being deferred.
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 strategy to financial loss.
Investment in infrastructure companies risk: The value of investments in Infrastructure Companies may be negatively impacted by changes in the regulatory, economic or political environment in which they operate.

Video

Real Return – quarterly outlook

Suzanne Hutchins discusses the impacts of inflation, geopolitical uncertainty and rising interest rates on markets.

14 November 2022

Macro views, Real Return

Video

Sustainable Real Return – quarterly outlook

Phil Shucksmith and Catherine Doyle explore climate change, COP 27 and the market outlook.

10 November 2022

Macro views, Real Return, Sustainable

Article

Investment thoughts from our Real Return team – Oct 2022

With monetary tightening and geopolitical tensions putting pressure on returns, where can investors find opportunities?

19 October 2022

Macro views, Real Return

Blog

Keeping the lights switched on

Energy security and decarbonisation: are they mutually exclusive?

Philip Shucksmith

12 August 2022

Real Return, Responsible investment, Sustainable

Strategy highlights

: Fundamental bottom-up research
Global thematic approach to investing targets areas with strong growth potential, not ‘old’ profit pools
Focus on ‘compounders’ – exceptional, leading businesses with long-term growth potential

Our philosophy and process

: Harnessing Newton’s global analyst resources, and adhering to our investment framework focused on fundamentals, themes, valuations and ESG considerations.

Three overarching themes aligned with UN Sustainable Development Goals – Earth, health and wealth.

Sustainable ‘red lines’, with responsible investment team validation, seek to ensure there is no investment in security issuers that:
: Breach the UN Global Compact
Are incompatible with a 2˚C world
Are deemed to have material ESG risks which are likely to negatively affect future performance and are associated with significant social or environmental harm
: Focus on innovative companies and dynamic management teams that provide solutions and benefit from growth opportunities.

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

Our Sustainable Global Emerging Markets strategy is managed by an experienced team. Our dedicated responsible investment team is an integral part of the investment process and has the power of veto. Guided by our global investment themes, we seek to identify opportunities and risks through research and debate.

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

Paul Birchenough

Portfolio manager, Global Opportunities team
Alex Khosla

Portfolio manager, Global Opportunities team
Ian Smith

Portfolio manager, Global Opportunities team
Julianne McHugh

Head of Sustainable Equities
Zoe Kan

Portfolio manager, emerging and Asian equity income
Nick Pope

Portfolio manager, sustainable equity strategies
Fei Chen

Portfolio manager, global research
Aditya Shah

Portfolio analyst, Global Opportunities team

Strategy profile

Objective: To achieve long-term capital growth by investing in emerging-market securities that demonstrate attractive investment attributes and are deemed by Newton to be sustainable.
Performance benchmark: MSCI Emerging Markets Index (NDR)
Typical number of equity holdings: Typically 45-65 holdings
Strategy inception: December 2021
Strategy available through pooled UK vehicle: BNY Mellon Sustainable Global Emerging Markets Fund

View Key Investor Information Document
View prospectus

Brochure

More detail on the strategy’s investment approach

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.

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 considerations are assessed and the assessment of their suitability for NIM’s sustainable strategies may vary depending on the asset class and strategy involved. For Newton’s sustainable strategies, ESG Quality Reviews are performed prior to investment for corporate investments (single name equity and fixed income securities).

Key investment risks

: Objective/performance risk: There is no guarantee that the strategy will achieve its objectives.
Currency risk: This strategy invests in international markets which means it is exposed to changes in currency rates which could affect the value of the strategy.
Geographic concentration risk: The strategy primarily invests in a single market which may have a significant impact on the value of the strategy.
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 Strategy can lose significantly more than the amount it has invested in derivatives.
Emerging markets risk: Emerging Markets have additional risks due to less-developed market practices.
Concentration risk: A fall in the value of a single investment may have a significant impact on the value of the strategy because it typically invests in a limited number of investments.
Shanghai-Hong Kong Stock Connect and/or the Shenzhen-Hong Kong Stock Connect (‘Stock Connect’) risk: The strategy may invest in China A shares through Stock Connect programmes. These may be subject to regulatory changes and quota limitations. An operational constraint such as a suspension in trading could negatively affect the strategy’s ability to achieve its investment objective.
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 strategy to financial loss.
Sustainable strategies risk: The strategy follows a sustainable investment approach, which may cause it to perform differently than strategies that have a similar objective but which do not integrate sustainable investment criteria when selecting securities. The strategy will not engage in stock lending activities and, therefore, may forego any additional returns that may be produced through such activities.

Video

Global Emerging Markets – quarterly outlook

Paul Birchenough considers what ongoing geopolitical uncertainty means for emerging markets, and where the opportunities may lie.

27 October 2022

Emerging markets & Asia, Macro views

Blog

Vietnam: Supply-chain superstar

Key (and sometimes surprising) findings from a recent trip to Vietnam.

Richard Bullock

04 October 2022

Emerging markets & Asia, Fixed income, Macro views, Sector research, Themes

Blog

Evolution not revolution: how our macro themes evolve

How our macro-focused investment themes have evolved to deal with a changing geopolitical and economic backdrop.

Paul Brain

04 August 2022

Emerging markets & Asia, Fixed income, Global equities, Themes

Strategy highlights

: Stock selection driven by bottom-up proprietary research which incorporates consideration of environmental, social and governance (ESG) risks, issues and opportunities
Global thematic approach to investing targets future profitability rather than historic profitability
Focus on ‘compounders’ aims to limit downside risk when markets become less certain

Our philosophy and process

The strategy seeks to invest in companies that are well governed and run for the benefit of all shareholders. It can also invest a proportion of assets in developed-market companies where business is driven by emerging-market operations.
Material ESG risks, opportunities and issues are considered as part of the investment research process.

The strategy has a long-term investment horizon. It focuses on balance-sheet strength and return-on-capital metrics.

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

Our Global Emerging Markets Equity strategy is managed by an experienced team. Our investment team of research analysts and portfolio managers works together across regions and sectors, helping to ensure that our investment process is highly flexible. Guided by our global investment themes, we seek to identify opportunities and risks through research and debate.

13: years’ average investment experience
4: years’ average time at Newton

Paul Birchenough

Portfolio manager, Global Opportunities team
Ian Smith

Portfolio manager, Global Opportunities team
Alex Khosla

Portfolio manager, Global Opportunities team
Zoe Kan

Portfolio manager, emerging and Asian equity income
Fei Chen

Portfolio manager, global research
Aditya Shah

Portfolio analyst, Global Opportunities team