Concentrated Global Equity

Strategy highlights

: Benefits from a broad perspective owing to our long-term thematic research
Flexibility to react to shifts in the attractiveness of different securities
Stock selection driven by bottom-up proprietary research which incorporates consideration of environmental, social and governance (ESG) risks, issues and opportunities

Our philosophy and process

: The strategy is conviction-based, and is constructed with little or no reference to the benchmark. A constantly evolving and forward-looking approach seeks to anticipate change, manage risk, and identify opportunities.

Material and relevant ESG risks, issues and opportunities are considered as part of the investment 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 themes to help identify opportunities.

Investment team

Our Concentrated Global Equity strategy is managed by a team with a wide range of backgrounds and varied experience. In-house research analysts are at the core of our investment process, and our multidimensional research platform spans fundamental, thematic, ESG, quantitative, geopolitical, investigative and private-market research to promote better-informed investment decisions.

22: years’ average investment experience
18: years’ average time at Newton

Paul Markham

Head of Global Opportunities
Simon Nichols

Portfolio manager, Global Opportunities team
Karen Miki Behr

Portfolio manager, Global Opportunities team
Duncan Bulgin

Portfolio manager, Global Opportunities team
Jonathan Dennis

Portfolio analyst, Global Opportunities team

Strategy profile

Objective: The strategy seeks to significantly outperform the MSCI AC World Index (NDR) over rolling 5-year periods by achieving long-term capital growth from a concentrated portfolio of global securities.
Performance benchmark: MSCI AC World Index (NDR)

Typical number of equity holdings: 30 to 50

Strategy size: £0.7bn (as at 31 Dec 2022)
Strategy inception: Composite inception: 1 October 2004
Strategy available through pooled UK vehicle: BNY Mellon Global Opportunities Fund

View fund performance
View Key Investor Information Document
View prospectus

Strategy factsheet

Performance and commentary for the last quarter.

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Responsible investment report

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

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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. Those considerations are among many inputs into the fundamental analysis. Other attributes of an investment may outweigh ESG considerations when making investment decisions. The way that material ESG considerations are assessed may vary depending on the asset class and strategy involved. As of September 2022, the research team performs ESG analysis on equity securities prior to their addition to Newton’s Research Recommended List (RRL). ESG reviews are not performed for all fixed income securities. The portfolio managers may purchase equity securities that are not included on the RRL and which do not have ESG reviews. Not all securities held by Newton’s strategies have an ESG review completed prior to investment.

Analysis of themes may vary depending on the type of security, investment rationale and investment strategy. Newton will make investment decisions that are not based on themes and may conclude that other attributes of an investment outweigh the thematic structure the security has been assigned to.

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.
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 objectives.
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.