Our philosophy and process

  • 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.
  • 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
  • Zoe Kan
    Zoe Kan

    Portfolio manager, emerging and Asian equity income

  • Nick Clay
    Nick Clay

    Investment leader, equity income

  • Robert Canepa-Anson
    Robert Canepa-Anson

    Analyst, equity income

  • Andrew MacKirdy
    Andrew MacKirdy

    Portfolio manager, equity income

  • Emma Mogford
    Emma Mogford

    Portfolio manager, UK equity income

  • Colin Rutter
    Colin Rutter

    Analyst, equity income

Strategy profile

Objective

To achieve income together with long-term capital growth from investing in emerging-market securities

Comparative index

MSCI Emerging Markets Index (NDR)

Typical number of equity holdings

40 to 60

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.*

Strategy size:

Below £200m (as at 31 December 2019)

Strategy inception:

October 2012

 

* On account of liquidity, it may not be possible to dispose of an entire holding immediately.

Key Investor Information Document

Read more
Latin American spring?
Blog

Latin American spring?

As street protests spread across the region, is Latin America approaching a tipping point?
Carl Shepherd
05 December 2019
Emerging markets & Asia, Fixed income
Blog

Megacities – where themes collide

Our dynamic thematic framework helps identify structural growth opportunities created by rapid urbanisation.
Ed Geall
21 November 2019
Emerging markets & Asia, Macro views, Newton philosophy, Sector research, Themes
Made in Vietnam?
Blog

Made in Vietnam?

A trip to Vietnam has highlighted the dual opportunity of the growing middle class and potential trade-war tailwinds.
Naomi Waistell
19 November 2019
Emerging markets & Asia

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 global emerging 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.