Investment approaches
Emerging Equity Income
A balanced blend of growth and income from emerging markets
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High-conviction, fundamentally driven, benchmark-agnostic approach
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Long-term themes target future growth in emerging markets
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Emphasis on quality and governance, with focus on consistency of dividend payments and lower volatility
Our philosophy and process
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The strategy is conviction-based with no sector constraints, and invests primarily in emerging markets.
A constantly evolving and forward-looking approach seeks to anticipate change, manage risk, and identify opportunities.
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The strategy seeks high-quality companies offering attractive and sustainable dividend yields, underpinned by strong cash generation. It employs a valuation screen to help portfolios in their aim to achieve a dividend yield above that of the index.
ESG considerations are integrated throughout the research process and via proprietary quality reviews, to ensure that any material issues are captured.
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 Emerging 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.
- 20
- years' average investment experience
- 12
- years' average time at Newton
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Zoe Kan
Portfolio manager, emerging and Asian equity income
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Ilga Haubelt
Head of Equity Opportunities
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Robert Hay
Portfolio manager, global equities
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Paul Flood
Portfolio manager, multi-asset team
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Jon Bell
Portfolio manager, equity income team
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Emma Mogford
Portfolio manager, UK equity income
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Nick Pope
Global analyst, financials
Strategy profile
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Objective
- To achieve income together with long-term capital growth from investing in emerging-market securities
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Comparative index
- MSCI Emerging Markets Index (NDR)
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Typical number of equity holdings
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40 to 60
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Yield discipline
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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.
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Strategy size:
- Below £200m (as at 31 March 2020)
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Strategy inception:
- October 2012
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.