Strategy highlights

  • Investment process based on strong fundamentals and valuation case
  • Flexibility to deviate from the benchmark and to invest directly in a range of UK equity opportunities
  • Benefits from a broad perspective owing to our long-term thematic research

Our philosophy and process

Detailed fundamental stock analysis is conducted by specialist analysts. Material ESG risks, opportunities and issues are considered as part of the investment research process.
The strategy is conviction-based with no sector constraints, and invests in UK equities. A constantly evolving and forward-looking approach seeks to anticipate change, manage risk, and identify 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 UK Equity 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
5
years’ average time at Newton

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 long-term capital growth from a portfolio of predominantly UK securities.

Performance Benchmark

FTSE All-Share

Typical number of equity holdings

50 to 70

Strategy size

£0.6bn (as at 30 Sept 2022)

Strategy inception

Composite inception: 1 January 1996

Strategy available through pooled UK vehicle

BNY Mellon UK Equity Fund

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

Strategy factsheet

Performance and commentary for the last quarter.


RI report UK Equity

Responsible investment report

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

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.
  • 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.
  • 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.