Investment approaches
Multi-Asset Diversified Return
Seeking to deliver robust and stable returns through disciplined diversification, with a focus on capital preservation
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Fundamental, active and flexible – directly invested portfolio aiming to deliver strong risk-adjusted returns with an asymmetric profile -
Controlling risk through diversification at both asset class and security level -
Absolute-return approach focusing on capital preservation – allowing investors potential to benefit from compounding and time
Our philosophy and process
- The strategy invests in a diversified range of assets, from equities and bonds to alternative assets. A constantly evolving and forward-looking approach seeks to anticipate change, manage risk, and identify opportunities.
- 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.
China influence
The influence of China on the world has grown exponentially but its economy looks increasingly risky. ‘China influence’ looks at how the country’s development affects the investment outlook beyond its borders.1
1 Compared to more established economies, the value of investments in emerging markets may be subject to greater volatility owing to differences in generally accepted accounting principles or from economic or political instability or less developed market practices.
State intervention
Authorities have engaged in ever-greater policy intervention and regulation to shore up economic growth. We believe ‘state intervention’ has increased misallocation of capital, caused volatility in markets and inflated asset prices – and we think that calls for a stock-specific approach.
Financialisation
Cheap money has caused rapid growth in a sector already supported by deregulation. ‘Financialisation’ investigates the implications of finance dominating economic activity, instead of serving it.
Consumer power
Technological advances are increasingly shifting the power to consumers in the marketplace. With the ability to compare prices and products independently now in the hands of the consumer, businesses must adapt to a changing commerce landscape, as their customers seek out better experiences, authenticity and value. Our ‘consumer power’ theme addresses these trends.
Investment team
Our Multi-Asset Diversified Return 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.
- 29
- years’ average investment experience
- 19
- years’ average time at Newton
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Paul Flood
Portfolio manager, global equity income
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Bhavin Shah
Portfolio manager, multi-asset team
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Hilary Meades
Portfolio manager, multi-asset team
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Oliver Larminie
Portfolio manager, charities and specialist institutions
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Simon Nichols
Portfolio manager, UK equities
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Rob Stewart
Portfolio manager, multi-asset team
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Tim Wilson
Portfolio manager, multi-asset team
Strategy profile
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Objective
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To achieve long-term returns in excess of cash returns from a portfolio diversified across a range of assets, including equities, bonds and alternatives.
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Performance aim
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Aims to deliver a minimum return of cash (one-month sterling LIBOR) +3% per annum over 5 years before fees. However, a positive return is not guaranteed and a capital loss may occur.
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Typical number of holdings
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Minimum of 120
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Volatility
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Expected to be between that of bonds and equities over the long term
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Strategy size
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£373m (as at 31 Dec 2020)
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Strategy inception
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Composite inception: 1 May 2003
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Strategy available through pooled UK vehicle
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BNY Mellon Multi-Asset Diversified Return Fund
View fund performance
View Key Investor Information Document
View prospectus
Strategy factsheet
Performance and commentary for the last quarter.
Responsible investment report
Stewardship activities (voting and engagement) for the last quarter and ESG metrics.
Quarterly video update: Q4 2020
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.