Understanding the challenges
The defined contribution sector continues to evolve at a fast pace as the industry works to implement the multitude of regulatory changes introduced in recent years. The challenges faced by DC pension schemes are diverse: value for money, consolidation and the increasing focus on sustainability are forcing schemes to reconsider their investments. Inflationary pressures and geopolitical uncertainty are making the search for long-term returns more challenging, which we believe highlights the benefits of an active and flexible investment approach.
With four decades of investment experience and £83.6bn of assets under management (as at 30 September 2023), Newton is one of the UK’s most prominent active managers of DC pension investments.
Committed to the DC market
We work closely with DC master trusts, DC schemes and specialist DC consultants to ensure we fully understand the outcomes that members are looking for and any constraints or specific considerations that trustees must take into account. We are well positioned to offer bespoke solutions that are tailored to meet these requirements and have a history of flexible asset allocation, sophisticated risk management, and analysis of responsible investment considerations.
Fundamental research is the lifeblood of Newton, and our multidimensional research platform aims to deliver insights in pursuit of better outcomes for our clients. One of the key inputs to our research process is our thematic research framework. We believe there are powerful transformational ‘micro’ and ‘macro’ shifts across economies and industries that will be instrumental in shaping the investment landscape over the coming years. These themes can help to shape our research agenda and support portfolio construction.
Material and relevant environmental, social and governance (ESG) risks, issues and opportunities are considered as part of our investment process. We have also developed a suite of sustainable strategies which aim to encourage a better allocation of capital that leads to the generation of sustainable risk-adjusted returns for clients alongside improved long-term global outcomes for society and the environment.
Our DC strategies
While all our investment strategies can be included in a DC scheme, here we highlight a selection of actively managed sustainable, multi-asset and absolute-return strategies which are designed to meet the specific requirements of DC schemes and their members at each stage of the retirement journey.
Additionally, in response to growing demand, we recently introduced our FutureLegacy suite of sustainable risk-targeted investment strategies. These offer clients the opportunity to align their choice of investment to their risk appetite.
Newton manages a variety of investment strategies. How ESG considerations are assessed or integrated into Newton’s strategies depends on the asset classes and/or the particular strategy involved. ESG may not be considered for each individual investment and, where ESG is considered, other attributes of an investment may outweigh ESG considerations when making investment decisions. ESG considerations do not form part of the research process for Newton’s small cap and multi-asset solutions strategies.