Sustainable Global Equity

Strategy highlights

: Environmental, social and governance (ESG) analysis looks beyond the financial statements

Investing in companies that positively manage the material impacts of their operations and products on the environment and society

Actively omitting companies involved in areas of high social cost, environmental degradation or violators of the UN Global Compact Principles

Our philosophy and process

: Harnessing Newton’s global analysis resources, the strategy adheres to our investment framework focused on fundamentals, themes, valuations and ESG considerations.

We focus on innovative companies and dynamic management teams that provide solutions and benefit from growth opportunities. Active corporate engagement and proxy voting provide powerful feedback loops that make us more informed shareholders who promote positive corporate development.

Our sustainable ‘red lines’ are built on a combination of exclusions that effectively avoid investments in security issuers involved in or that generate a material proportion of revenues from areas of activity that we deem to be harmful from a social and/or environmental perspective.

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 themes to help identify opportunities.

Investment team

Our Sustainable Global Equity strategy is managed by a team with a wide range of backgrounds and varied experience. In-house research analysts are at the core of our investment process, and our multidimensional research platform spans fundamental, thematic, ESG, quantitative, geopolitical, investigative and private-market research to promote better-informed investment decisions.

22: years’ average investment experience
17: years’ average time at Newton

Paul Markham

Head of Global Opportunities
Nick Pope

Portfolio manager, sustainable equity strategies
Simon Nichols

Portfolio manager, Global Opportunities team
Julianne McHugh

Head of sustainable equities
Duncan Bulgin

Portfolio manager, Global Opportunities team
Karen Miki Behr

Portfolio manager, Global Opportunities team
Jonathan Dennis

Portfolio analyst, Global Opportunities team

Strategy profile

Objective: The strategy seeks to outperform the MSCI AC World (NDR) Index by more than 2% per annum over rolling 5-year periods by achieving long-term capital growth from a portfolio of global securities that demonstrate attractive investment attributes and sustainable business practices.
Performance benchmark: MSCI AC World Index (NDR)

Typical number of equity holdings: 50 or fewer

Strategy inception: Composite inception: 1 February 2018
Strategy available through pooled UK vehicle: BNY Mellon Sustainable Global Equity Fund

View fund performance
View Key Investor Information Document
View prospectus

Strategy factsheet

Performance and commentary for the last quarter.

Download Factsheet

Responsible investment report

Stewardship activities (voting and engagement) for the last quarter and ESG metrics.

Download Report

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.

Newton will make investment decisions that are not based solely on ESG considerations. Those considerations are among many inputs into the fundamental analysis. Other attributes of an investment may outweigh ESG considerations when making investment decisions. The way that material ESG considerations are assessed may vary depending on the asset class and strategy involved. As of September 2022, the research team performs ESG analysis on equity securities prior to their addition to Newton’s Research Recommended List (RRL). ESG reviews are not performed for all fixed income securities. The portfolio managers may purchase equity securities that are not included on the RRL and which do not have ESG reviews. Not all securities held by Newton’s strategies have an ESG review completed prior to investment.

Key investment risks

: Objective/performance risk: There is no guarantee that the strategy will achieve its objectives.

Currency risk: This strategy invests in international markets which means it is exposed to changes in currency rates which could affect the value of the strategy.

Derivatives risk: Derivatives are highly sensitive to changes in the value of the asset from which their value is derived. A small movement in the value of the underlying asset can cause a large movement in the value of the derivative. This can increase the sizes of losses and gains, causing the value of your investment to fluctuate. When using derivatives, the strategy can lose significantly more than the amount it has invested in derivatives.

Emerging markets risk: Emerging Markets have additional risks due to less-developed market practices.

Concentration risk: 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.

Sustainable strategies risk: The strategy follows a sustainable investment approach, which may cause it to perform differently than strategies that have a similar objective but which do not integrate sustainable investment criteria when selecting securities. The strategy will not engage in stock lending activities and, therefore, may forego any additional returns that may be produced through such activities.

Counterparty risk: The insolvency of any institutions providing services such as custody of assets or acting as a counterparty to derivatives or other contractual arrangements, may expose the strategy to financial loss.

Investment in infrastructure companies risk: The value of investments in Infrastructure Companies may be negatively impacted by changes in the regulatory, economic or political environment in which they operate.