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 headwinds faced by DC pension schemes are diverse: fee caps, 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 £83.3bn of assets under management (as at 31 March 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 consideration of environmental, social and governance (ESG) issues, all of which are underpinned by our multi-dimensional research process.
We employ a global thematic approach in seeking to meet the long-term investment objectives of our DC clients. Instead of relying purely upon quantitative analysis, we combine rigorous research with long-term themes which focus on the dominant forces of change in global markets.
ESG considerations are embedded in our analysis of investment opportunities and risks. 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.