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 Asian 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. Guided by our global investment themes, the team works together to identify opportunities and risks through research and debate.

17
years' average investment experience
13
years' average time at Newton

Strategy profile

Objective

To achieve income, together with long-term capital growth, through investment in securities in the Asia-Pacific ex Japan region, including Australia and New Zealand, but excluding Japan

Comparative index

FTSE All World Asia-Pacific ex Japan

Typical number of equity holdings

40 to 70

Yield discipline

Every new holding must have a prospective yield of at least 85% of the yield achieved by the comparative index. Any holding whose prospective yield falls below a 40% discount to the yield achieved by the index will be sold. On account of liquidity, it may not be possible to dispose of an entire holding immediately.*

*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.

Strategy size

£1.0bn (as at 30 June 2020)

Strategy inception

Composite inception: 1 September 2005
UK Inst Asian Equity Income strategy factsheet

Strategy factsheet

Performance and commentary for the last quarter.


RI report Asian Equity Income Strategy

Responsible investment report

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


Fund performance


Key Investor Information Document

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 Asia Pacific markets may have a significant impact on the value of the strategy because it primarily invests in these markets.
  • The strategy will 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.