UK Institutional UK Equity Income

Strategy highlights

  • Focuses on high-quality, cash-generative stocks with reliable dividend yields
  • Designed to yield at least 110% of the FTSE All-Share Index over a rolling three-year period
  • At least 70% of portfolio invested in UK equities

Our philosophy and process

Detailed fundamental stock analysis is conducted by specialist analysts. A constantly evolving and forward-looking approach seeks to anticipate change, manage risk, and identify opportunities.

Material ESG risks, opportunities and issues are considered as part of the investment research process.

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 UK Equity Income 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.

22
years’ average investment experience
06
years’ average time at Newton
  • David Cumming
    David Cumming

    Head of UK Equities

  • Tim Lucas
    Tim Lucas

    Portfolio manager, UK Equities team

  • Georgina Cooper
    Georgina Cooper

    Portfolio manager, UK Equities team

  • Louise Kernohan
    Louise Kernohan

    Portfolio manager, UK Equities team

Strategy profile

Objective

The strategy seeks to outperform the FTSE All-Share index by more than 2% per annum over rolling 5-year periods, by achieving income and capital growth from a portfolio comprised predominantly of UK securities. The strategy is designed to yield at least 110% of the FTSE All-Share Index yield over a rolling 3-year period.

Performance benchmark

FTSE All-Share

Typical number of equity holdings

30 to 50

Strategy size

£1.3bn (as at 31 March 2023)

Strategy inception

Composite inception: 1 January 1996

Strategy available through pooled UK vehicle

BNY Mellon UK Income Fund

View fund performance
View Key Investor Information Document
View prospectus
UK Inst UK equity income strategy factsheet

Strategy factsheet

Performance and commentary for the last quarter.

Download Factsheet
RI report UK Equity Income

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: 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.
  • 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.
  • High yield companies risk: Companies with high-dividend rates are at a greater risk of not being able to meet these payments and are more sensitive to interest rate risk.
  • 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