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.

14
years' average investment experience
12
years' average time at Newton
  • Robert Marshall-Lee
    Robert Marshall-Lee

    Investment leader, emerging and Asian equity team

  • Sophia Whitbread
    Sophia Whitbread

    Portfolio manager, emerging and Asian equity team

  • Caroline Keen
    Caroline Keen

    Portfolio manager, emerging and Asian equity team

  • Zoe Kan
    Zoe Kan

    Portfolio manager, emerging and Asian equity team

  • Naomi Waistell
    Naomi Waistell

    Portfolio manager, emerging and Asian equity team

  • Amy Leung
    Amy Leung

    Portfolio manager, emerging and Asian equity team

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 2018)

Strategy inception:

October 2012

 

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

Prop-ping up a powerhouse

How the property market continues to dominate the cyclical ups and downs of China’s economy.
Brendan Mulhern
15 April 2019
Emerging markets & Asia, Real Return
Blog

Driving us Caracas

Venezuela’s president and opposition leader are deepening a political crisis that could hold major implications for global markets.
Carl Shepherd
19 February 2019
Emerging markets & Asia, Fixed income, Sector research
Emerging markets: a long-term boost for DC pensions?
Article

Emerging markets: a long-term boost for DC pensions?

Could actively managed emerging-market strategies offer schemes an attractive balance of risk versus reward over the long term?
31 January 2019
Defined contribution, 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.