PRI: Principles for Responsible Investment

A+ RATED

Newton Investment Management Limited has been a signatory of the UN Principles for Responsible Investment (PRI) since 2007, and is ranked A+ across all areas of the PRI’s annual assessment.

The UK Financial Reporting Council has determined, at its first opportunity, that Newton is a signatory of the UK Stewardship Code 2020. In March 2021, Newton joined the Net Zero Asset Managers initiative, demonstrating our commitment to work with our clients to help fulfil their net-zero ambitions and to navigate portfolios through the complex energy transitions that are unfolding.

How we approach responsible investment

ESG research

We believe that taking ESG factors into account where appropriate and as applicable can lead to better investment decisions. Our responsible investment process is founded on three pillars: in-depth ESG security analysis, active company engagement, and active proxy voting.

Active engagement

Active engagement with the companies we invest in allows us to monitor changes in management processes, remuneration and social and environmental issues. By taking a proactive approach to our engagement, we can work with the companies we invest in to increase the sustainability of their businesses over time. We also take an active role in the external ESG debate across the wider industry, and help to shape policy and thought leadership.

Holding ourselves to account

At Newton, we are conscious of the expectations we place on the entities we invest in on behalf of our clients, and we seek to hold ourselves to the same standards. The way our business is governed is designed to ensure that we achieve our commercial objectives in a responsible and sustainable manner which is consistent with our corporate purpose, and that in doing so we act as we expect others to act.

What we offer

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 a range of global investment themes to capture these.

Investment team

Our Sustainable Real Return strategy is managed by an experienced team with a wide range of backgrounds. 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. Our dedicated responsible investment team is an integral part of the investment decision-making process. Guided by our global investment themes, the team works together to identify opportunities and risks through research and debate.

20
years’ average investment experience
14
years’ average time at Newton

Strategy profile

Objective

The strategy has an absolute-return style performance aim, while seeking to preserve capital, through security selection, diversification and simple hedging strategies. The strategy invests in well-run businesses that both have durable financial and competitive positions and manage positively the material impacts of their operations and products on the environment and society.

Performance benchmark*

The strategy aims to deliver a minimum 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.

Volatility

Expected to be between that of bonds and equities over the long term

Strategy size

£0.6bn (as at 31 March 2022)

Strategy inception

Composite inception: 1 May 2018


Strategy available through pooled UK vehicle

BNY Mellon Sustainable 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%.

Read more about the transition from LIBOR to SONIA in relation to onshore UK pooled funds
UK Inst Sustainable Real Return strategy factsheet

Strategy factsheet

Performance and commentary for the last quarter.


RI report Sustainable real return

Responsible investment report

Stewardship activities (voting and engagement) for the last quarter and ESG metrics.


Sustainable Real Return Brochure

Brochure

More detail on the strategy’s investment approach.

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.

Key investment risks

  • 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 the returns to be significantly different than expected.
  • This strategy invests in global markets which means it is exposed to changes in currency rates which could affect the value of the strategy.
  • The strategy may use derivatives to generate returns as well as to reduce costs and/or the overall risk of the strategy. Using derivatives can involve a higher level of risk. A small movement in the price of an underlying investment may result in a disproportionately large movement in the price of the derivative investment.
  • Investments in bonds are affected by interest rates and inflation trends which may affect the value of the strategy.
  • The strategy holds bonds with a low credit rating that have a greater risk of default. These investments may affect the value of the strategy.
  • The strategy may invest in emerging markets. These markets have additional risks due to less developed market practices.
  • The strategy may invest in investments that are not traded regularly and are therefore subject to greater fluctuations in price.
  • The strategy may invest in small companies which may be riskier and less liquid (i.e. harder to sell) than large companies. This means that their share prices may have greater fluctuations.
  • The strategy 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.

Our philosophy and process

  • The strategy follows an unconstrained, highly dynamic asset-allocation approach within a broad universe of global bonds; it can invest in government bonds, emerging-market sovereigns, high-yield bonds and investment-grade corporate debt. The strategy has the flexibility to manage currency exposure actively to generate additional returns.
  • 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 Dynamic Bond strategy is managed by a focused, experienced fixed-income 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. Our dedicated responsible investment team is an integral part of the investment decision-making process. Guided by our global investment themes, the team works together to identify opportunities and risks through research and debate.

21
years’ average investment experience
14
years’ average time at Newton

Strategy profile

Objective

To maximise the total return from income and capital growth by investment primarily in a globally diversified portfolio of debt and debt-related securities issued by companies and governments that demonstrate attractive investment attributes and are deemed to be sustainable.

Performance benchmark*

Aims to deliver a minimum return of SONIA (30-day compounded) +2% per annum over 5 years before fees.* However, a positive return is not guaranteed and a capital loss may occur.

Strategy size

£0.6bn (as at 31 March 2022)

Strategy inception

Composite inception: 1 March 2019

Strategy available through pooled UK vehicle

BNY Mellon Sustainable Global Dynamic Bond Fund

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 +2% to SONIA (30-day compounded) +2%.

Read more about the transition from LIBOR to SONIA in relation to onshore UK pooled funds
UK Inst Sustainable Global Dynamic Bond strategy factsheet

Strategy factsheet

Performance and commentary for the last quarter.


RI report Sustainable global dynamic bond

Responsible investment report

Stewardship activities (voting and engagement) for the last quarter and ESG metrics.


Sustainable Global Dynamic Bond Brochure

Brochure

More detail on the strategy’s investment approach

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.

Key investment risks

  • The performance aim is not a guarantee, may not be achieved and a capital loss may occur.
  • The strategy invests in international markets which means it is exposed to changes in currency rates which could affect the value of the strategy.
  • The strategy may use derivatives to generate returns as well as to reduce costs and/or the overall risk of the strategy. Using derivatives can involve a higher level of risk. A small movement in the price of an underlying investment may result in a disproportionately large movement in the price of the derivative investment.
  • Investments in bonds are affected by interest rates and inflation trends which may affect the value of the strategy.
  • The strategy holds bonds with a low credit rating that have a greater risk of default. These investments may affect the value of the strategy.
  • The strategy may invest in emerging markets. These markets have additional risks due to less developed market practices.
  • The strategy follows a sustainable investment approach, which may cause it to perform differently to strategies that have a similar objective but which do not integrate sustainable investment criteria when selecting securities.

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 a range of global investment themes to capture these.

Earth matters

Environmental factors are high up the political agenda and provide areas of opportunity as well as risk. Governments are under pressure to respond but this can be expensive, despite advancements in technology. ‘Earth matters’ looks at these issues.

China influence

The influence of China on the world has grown exponentially but its economy looks increasingly risky. ‘China influence’ looks at how the country’s development affects the investment outlook beyond its borders.1

1 Compared to more established economies, the value of investments in emerging markets may be subject to greater volatility owing to differences in generally accepted accounting principles or from economic or political instability or less developed market practices.

State intervention

Authorities have engaged in ever-greater policy intervention and regulation to shore up economic growth. We believe ‘state intervention’ has increased misallocation of capital, caused volatility in markets and inflated asset prices – and we think that calls for a stock-specific approach.

Smart revolution

Machines and networks are becoming more intelligent. This is disrupting the labour market, as machines increasingly replace humans in the workplace. ‘Smart revolution’ considers the implications commercially, socially and politically.

Investment team

Our Sustainable Global Emerging Markets strategy is managed by a team of two portfolio managers, who form part of Newton’s equity opportunities 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.

23
years’ average investment experience
12
years’ average time at Newton

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
Sustainable Global Emerging Markets brochure

Brochure

More detail on the strategy’s investment approach.

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.

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 may have substantial investment exposure to a single market which may have a significant impact on the value of the strategy.
  • 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.
  • 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.

Our philosophy and process

  • Sustainable ‘red lines’ ensure the poorest-performing companies are not eligible for investment, such as companies which violate the UN Global Compact Principles of sustainable corporate performance. Companies which we think are incompatible with the aim of limiting global warming to 2°C are also excluded.
  • We engage with companies where ESG issues are resolvable and can be improved, and report on that activity. We will not invest in any company that derives more than 10% of its turnover from the production and sale of tobacco.

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 Equity strategy is managed by a team with a wide range of backgrounds and varied experience. 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. Our dedicated responsible investment team is an integral part of the investment decision-making process. Guided by our global investment themes, the team works together to identify opportunities and risks through research and debate.

19
years’ average investment experience
11
years’ average time at Newton

Strategy profile

Objective

To achieve capital growth and income by investing in well-run businesses that both have durable financial and competitive positions and manage positively the material impacts of their operations and products on the environment and society

Comparative index

MSCI AC World Index (NDR)

Performance aim

To outperform the comparative index by 2% per annum over rolling five-year periods before fees

Typical number of equity holdings

50 or fewer

Strategy inception

Composite inception: 1 February 2018


Strategy available through pooled UK vehicle

BNY Mellon Sustainable Global Equity Fund

View fund performance
View Key Investor Information Document
View prospectus

UK Inst Sustainable Global Equity strategy factsheet

Strategy factsheet

Performance and commentary for the last quarter.


RI report Sustainable global equity

Responsible investment report

Stewardship activities (voting and engagement) for the last quarter and ESG metrics.


Sustainable Global Equity Brochure

Brochure

More detail on the strategy’s investment 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.

Key investment risks

  • There is no guarantee that the strategy will achieve its objective.
  • This strategy invests in international markets which means it is exposed to changes in currency rates which could affect the value of the strategy.
  • The strategy may invest in emerging markets. These markets have additional risks due to less developed market practices.
  • The strategy may use derivatives to generate returns as well as to reduce costs and/or the overall risk of the strategy. Using derivatives can involve a higher level of risk. A small movement in the price of an underlying investment may result in a disproportionately large movement in the price of the derivative investment.
  • 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.
  • The strategy may invest in small companies which may be riskier and less liquid (i.e. harder to sell) than large companies. This means that their share prices may have greater fluctuations.
  • The strategy 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.

Our philosophy and process

  • The strategy is conviction-based, with no regional constraints. Portfolios tend to hold stocks of cash-generative companies with highly attractive dividend yields. Every new holding typically has a prospective yield at least 25% greater than that of the market at the point of purchase. Any holding whose prospective yield falls below the market yield will trigger a sale.
  • As we seek to positively influence companies as a shareholder or potential shareholder, we use the levers that are available to equity investors, including proxy voting and direct engagement with companies. While we do invest in those companies that already have strong ESG profiles, we prioritise companies that are improving their ESG performance. In this way, we seek to help drive positive ESG outcomes, while having the potential to achieve financial benefits through this change.

‘Red lines’ ensure that the companies that we choose to invest in do not violate the UN Global Compact’s ten principles that promote responsible corporate citizenship, or have characteristics which make them incompatible with the aim of limiting global warming to 2°C. We also incorporate a tobacco exclusion as we do not view tobacco businesses as compatible with our commitment to sustainable investment.

We provide regular reports for investors to view the impacts of engagement with companies, and to show statistics such as the portfolio’s ESG rating and carbon footprint.

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 Equity Income strategy 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. Our dedicated responsible investment team is an integral part of the investment decision-making process. Guided by our global investment themes, the team works together to identify opportunities and risks through research and debate.

23
years’ average investment experience
19
years’ average time at Newton

Strategy profile

Objective

The strategy seeks to outperform the FTSE W World index by more than 2% per annum over rolling 5-year periods, by achieving income and capital growth from a global portfolio comprised of companies that typically yield at least 25% greater than the comparative index yield, and which demonstrate attractive investment attributes and sustainable business practices.*

*In order to prevent the portfolio from being a forced seller of securities that have suspended their dividend purely owing to the Covid-19 situation, a new sell discipline basket has been created specifically for such securities, which temporarily overrides the portfolio’s yield-based sell discipline. Securities falling into this basket may continue to be held providing there is a reasonable expectation that any dividends will be reinstated at a level consistent with the strategy’s yield criteria. The rationale for each affected security will be reviewed at least every six months.

Comparative index

FTSE W World Index

Typical number of equity holdings

70 or fewer

Strategy inception

18 July 2019

Strategy available through pooled UK vehicle

BNY Mellon Sustainable Global Equity Income Fund

View Key Investor Information Document
View prospectus

UK Inst Sustainable Global Equity Income strategy factsheet

Strategy factsheet

Performance and commentary for the last quarter.


RI report Sustainable global equity income

Responsible investment report

Stewardship activities (voting and engagement) for the last quarter and ESG metrics.


Sustainable Global Equity Income Brochure

Brochure

More detail on the strategy’s investment approach.

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.

Key investment risks

  • There is no guarantee that the strategy will achieve its objective.
  • This strategy invests in global markets which means it is exposed to changes in currency rates which could affect the value of the strategy.
  • The strategy may use derivatives to generate returns as well as to reduce costs and/or the overall risk of the strategy. Using derivatives can involve a higher level of risk. A small movement in the price of an underlying investment may result in a disproportionately large movement in the price of the derivative investment.
  • The strategy invests in emerging markets. These markets have additional risks due to less developed market practices.
  • 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.
  • The strategy may invest in small companies which may be riskier and less liquid (i.e. harder to sell) than large companies. This means that their share prices may have greater fluctuations.
  • The strategy follows a sustainable investment approach, which may cause it to perform differently to strategies that have a similar objective but which do not integrate sustainable investment criteria when selecting securities.

Our philosophy and process

  • Sustainable ‘red lines’ ensure the poorest-performing companies are not eligible for investment, such as companies which violate the UN Global Compact Principles of sustainable corporate performance. Companies which we think are incompatible with the aim of limiting global warming to 2°C are also excluded.
  • We engage with companies where ESG issues are resolvable and can be improved, and report on that activity. We will not invest in any company that derives more than 10% of its turnover from the production and sale of tobacco.

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 Sterling Bond strategy is managed by a focused, experienced fixed-income 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. Our dedicated responsible investment team is an integral part of the investment decision-making process. Guided by our global investment themes, the team works together to identify opportunities and risks through research and debate.

21
years’ average investment experience
14
years’ average time at Newton

Strategy profile

Objective

To achieve capital growth and income by investing predominantly in fixed-interest securities that are denominated in sterling or hedged back to sterling. It invests in securities issued or guaranteed by the UK government, and sterling-denominated fixed-interest securities of companies that both have durable financial and competitive positions and manage positively the material impacts of their operations and products on the environment and society.

Strategy inception

Composite inception: 1 June 2018

Strategy available through pooled UK vehicle

BNY Mellon Sustainable Sterling Bond Fund

View Key Investor Information Document
View prospectus
RI report Sustainable Sterling Bond

Responsible investment report

Stewardship activities (voting and engagement) for the last quarter and ESG metrics.


Sustainable investment strategies brochure

Brochure

More detail on the strategy’s investment approach

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.

Key investment risks

  • There is no guarantee that the strategy will achieve its objective.
  • A fall in the UK market may have a significant impact on the value of the strategy because it primarily invests in this market.
  • The strategy may use derivatives to generate returns as well as to reduce costs and/or the overall risk of the strategy. Using derivatives can involve a higher level of risk. A small movement in the price of an underlying investment may result in a disproportionately large movement in the price of the derivative investment.
  • Investments in bonds are affected by interest rates and inflation trends which may affect the value of the strategy.
  • The strategy 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.

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 a range of global investment themes to capture these.

Earth matters

Environmental factors are high up the political agenda and provide areas of opportunity as well as risk. Governments are under pressure to respond but this can be expensive, despite advancements in technology. ‘Earth matters’ looks at these issues.

China influence

The influence of China on the world has grown exponentially but its economy looks increasingly risky. ‘China influence’ looks at how the country’s development affects the investment outlook beyond its borders.1

1 Compared to more established economies, the value of investments in emerging markets may be subject to greater volatility owing to differences in generally accepted accounting principles or from economic or political instability or less developed market practices.

State intervention

Authorities have engaged in ever-greater policy intervention and regulation to shore up economic growth. We believe ‘state intervention’ has increased misallocation of capital, caused volatility in markets and inflated asset prices – and we think that calls for a stock-specific approach.

Smart revolution

Machines and networks are becoming more intelligent. This is disrupting the labour market, as machines increasingly replace humans in the workplace. ‘Smart revolution’ considers the implications commercially, socially and politically.

Investment team

Our Sustainable UK Opportunities strategy is managed by a team of portfolio managers, who form part of Newton’s equity opportunities team. Our dedicated responsible investment team is an integral part of the investment decision-making process. Guided by our global investment themes, the team works together to identify opportunities and risks through research and debate.

18
years’ average investment experience
10
years’ average time at Newton

Strategy profile

Objective

To achieve long-term capital growth from a concentrated portfolio invested primarily in UK securities with the capability to hold non-UK securities

Performance benchmark

FTSE All-Share

Typical number of equity holdings

30 to 50

Strategy size

£242m (as at 31 March 2022)

Strategy inception

8 December 2021

Strategy available through pooled UK vehicle

BNY Mellon Sustainable UK Opportunities Fund

View fund performance
View Key Investor Information Document
View prospectus
RI report Sustainable UK Opportunities

Responsible investment report

Stewardship activities (voting and engagement) for the last quarter and ESG metrics.

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.

Key investment risks

  • There is no guarantee that the strategy will achieve its objective.
  • A fall in the UK market may have a significant impact on the value of the strategy because it primarily invests in this market.
  • This strategy may invest in international markets which means it is exposed to changes in currency rates which could affect the value of the strategy.
  • 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.
  • The strategy 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.
  • The strategy may invest in small companies which may be riskier and less liquid (i.e. harder to sell) than large companies. This means that their share prices may have greater fluctuations.
  • The strategy may use derivatives to generate returns as well as to reduce costs and/or the overall risk of the strategy. Using derivatives can involve a higher level of risk. A small movement in the price of an underlying investment may result in a disproportionately large movement in the price of the derivative investment.

Our philosophy and process

Harnessing Newton’s global analyst resources, and adhering to our investment framework focused on fundamentals, themes, valuations and ESG considerations
Initial sustainable ‘red lines’ are only part of the process. We also bring our responsible investment team into the process to ensure our holdings’ sustainable credentials are robust and maintainable.

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 is in the context of what is happening across the world. We believe the investment landscape is shaped over the long term by certain key trends, and use a range of global investment themes to capture these.

Earth matters

Environmental factors are high up the political agenda and provide areas of opportunity as well as risk. Governments are under pressure to respond but this can be expensive, despite advancements in technology. ‘Earth matters’ looks at these issues.

China influence

The influence of China on the world has grown exponentially but its economy looks increasingly risky. ‘China influence’ looks at how the country’s development affects the investment outlook beyond its borders.1

1 Compared to more established economies, the value of investments in emerging markets may be subject to greater volatility owing to differences in generally accepted accounting principles or from economic or political instability or less developed market practices.

State intervention

Authorities have engaged in ever-greater policy intervention and regulation to shore up economic growth. We believe ‘state intervention’ has increased misallocation of capital, caused volatility in markets and inflated asset prices – and we think that calls for a stock-specific approach.

Smart revolution

Machines and networks are becoming more intelligent. This is disrupting the labour market, as machines increasingly replace humans in the workplace. ‘Smart revolution’ considers the implications commercially, socially and politically.

Investment team

Our Sustainable European Opportunities strategy is managed by a team of portfolio managers who form part of Newton’s equity opportunities team. Our dedicated responsible investment team is an integral part of the investment decision-making process. Guided by our global investment themes, the team works together to identify opportunities and risks through research and debate.

18
years’ average investment experience
11
years’ average time at Newton

Strategy profile

Objective

To achieve long-term capital growth from investment in European securities, excluding those in the UK

Performance benchmark

FTSE World Europe ex UK

Typical number of equity holdings

30 to 50

Strategy inception

8 December 2021

Strategy available through pooled UK vehicle

BNY Mellon Sustainable European Opportunities Fund

View fund performance
View Key Investor Information Document
View prospectus
RI report Sustainable European Opportunities

Responsible investment report

Stewardship activities (voting and engagement) for the last quarter and ESG metrics.

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.

Key investment risks

  • There is no guarantee that the strategy will achieve its objective.
  • This strategy invests in international markets which means it is exposed to changes in currency rates which could affect the value of the strategy.
  • A fall in the European market may have a significant impact on the value of the strategy because it primarily invests in this market.
  • The strategy 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.
  • 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.
  • The strategy may invest in small companies which may be riskier and less liquid (i.e. harder to sell) than large companies. This means that their share prices may have greater fluctuations.
  • The strategy may use derivatives to generate returns as well as to reduce costs and/or the overall risk of the strategy. Using derivatives can involve a higher level of risk. A small movement in the price of an underlying investment may result in a disproportionately large movement in the price of the derivative investment.
  • The strategy may invest in emerging markets. These markets have additional risks due to less developed market practices.

Reports – Stewardship and climate-related disclosures

Q1 2022 ESG report

Q1 2022 ESG report – Our latest engagement and voting activities

Earlier editions of our responsible investment report are available from our report archive.

Newton Responsible Investment Policies and Principles

Responsible investment and stewardship

Responsible investment and stewardship 2021 annual report

TCFD report

Task Force on Climate-related Financial Disclosures (TCFD) report

Case studies

This series explains why we believe active engagement can drive better investment decisions, and shares some specific examples of our engagement work.

Meet the team

Niall leads on developing and managing responsible investment data solutions. He also contributes to thematic research.

Carolyn undertakes research and engagement on ESG issues with global companies.

Jennifer is responsible for maintaining and expanding Newton’s efforts in relation to investor stewardship.

Alex leads on developing and managing responsible investment data solutions. He also contributes to thematic research.

Contact us

We are here to help with any questions you may have about our investment solutions.