Our philosophy and process

  • The high-yield strategy invests in sub-investment-grade bonds which are considered riskier than investment-grade bonds. The strategy has the flexibility to actively manage currency exposure to generate additional returns. A constantly evolving and forward-looking approach seeks to anticipate change and identify opportunities.
  • Security selection is driven by the use of investment themes, rather than by comparative index composition. 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 Global High Yield Bond strategy is managed by a focused, experienced fixed-income 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

Strategy profile

Objective

To achieve strong returns and a high yield from a portfolio invested predominantly in global fixed-interest securities

Comparative index

BofA ML Global High-Yield excluding Bank Capital & Jr Sub (GBP hedged)

Strategy size

Below £200m (as at 30 June 2019)

Strategy inception

Composite inception: 1 January 2001

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.
  • The strategy may use techniques to try to eliminate the effects of changes in the exchange rate between the currency of the underlying investments and the base currency (i.e. the reporting currency) of the strategy. These techniques may not eliminate all the currency risk.
  • 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.
  • Investments in bonds are affected by interest rates and inflation trends which may affect the value of the strategy.
  • The strategy holds bonds with a low credit rating that have a greater risk of default. These investments may affect the value of the strategy.
  • The strategy may invest in emerging markets. These markets have additional risks due to less developed market practices.
  • The strategy may invest in investments that are not traded regularly and are therefore subject to greater fluctuations in price.