UK Institutional Sustainable UK Opportunities

Strategy highlights

  • Fundamental bottom-up research
  • Thematic research identifies areas with strong growth potential, not ‘old’ profit pools
  • Focus on high quality ‘compounders’ – exceptional, growing businesses that can sustain superior returns into the long term

Our philosophy and process

Harnessing Newton’s global analyst resources, and adhering to our investment framework focused on fundamentals, themes, valuations and ESG considerations.

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.

Focus on innovative companies and dynamic management teams that provide solutions and benefit from growth opportunities.

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 UK Opportunities strategy is managed by an experienced team. 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.

23
years’ average investment experience
09
years’ average time at Newton
  • Louise Kernohan
    Louise Kernohan

    Portfolio manager, UK Equities team

  • Georgina Cooper
    Georgina Cooper

    Portfolio manager, UK Equities team

  • David Cumming
    David Cumming

    Head of UK Equities

  • Julianne McHugh
    Julianne McHugh

    Head of sustainable equities

  • Nick Pope
    Nick Pope

    Portfolio manager, sustainable equity strategies

  • Tim Lucas
    Tim Lucas

    Portfolio manager, UK Equities team

Strategy profile

Objective

To achieve long-term capital growth from a concentrated portfolio invested primarily in UK securities with the capability to hold non-UK securities

Performance benchmark

FTSE All-Share

Typical number of equity holdings

30 to 50

Strategy inception

8 December 2021

Strategy available through pooled UK vehicle

BNY Mellon Sustainable UK Opportunities Fund

View fund performance
View Key Investor Information Document
View prospectus
UK Inst Sustainable UK Opportunities strategy factsheet

Strategy factsheet

Performance and commentary for the last quarter.

Download Factsheet
RI report Sustainable UK Opportunities

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. Other attributes of an investment may outweigh ESG considerations when making investment decisions. The way that ESG and sustainability considerations are assessed and the assessment of their suitability for Newton’s sustainable strategies may vary depending on the asset class and strategy involved. For Newton’s sustainable strategies, ESG reviews are performed prior to investment for corporate investments (single name equity and fixed income securities). The analysis will then also follow the Newton sustainable investment process to ensure it fits with the wider Newton sustainable investment philosophy.

Key investment risks

  • Objective/performance risk: The performance aim is not a guarantee, may not be achieved and a capital loss may occur. Strategies which have a higher performance aim generally take more risk to achieve this and so have a greater potential for returns to vary significantly.
  • 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.
  • Geographic concentration risk: The strategy primarily invests in a single market which may have a significant impact on 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.
  • 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.

Insights

What next for the FTSE?
Blog

What next for the FTSE?

We discuss the outlook for UK equities.
Georgina Cooper
22 March 2023
UK equities
Blog

2022: Reflections of a UK equity investor

Looking back on a year of multiple crises.
David Cumming
10 January 2023
UK equities
COVID-19: UK bond market impact
Blog

What’s next for UK equities?

We describe the opportunities and challenges facing the UK equity market in 2023.
David Cumming
03 January 2023
UK equities