UK Institutional Strategies Equity Income Global Equity Income

Reasons for income

After the pandemic-induced and broad-based dividend cuts and suspensions of 2020, we witnessed a strong global dividend comeback over the last two years. But we believe there is more to come, and see a number of reasons why income-paying stocks should remain attractive for investors.

  • Electronics, Hardware, Hook
    Dividend income payouts look sustainable
  • Handrail, Railing, Bow
    A positive shift in the macroeconomic environment
  • Shopping Cart
    Income stocks remain inexpensive
  • Machine, Gear, Wheel
    Income stocks can provide diversification

A guide to income investing in turbulent markets

To help clients capitalise on this opportunity, Newton has developed a guide to equity income investing.
a-guide-to-income-investing-in-turbulent-markets
Download the guide

What Newton offers

Experienced team uses strict ‘buy and sell’ yield discipline
The Global Equity Income strategy is run by three highly experienced portfolio managers with more than 70 years of combined investment experience. The strategy has used the same consistent and disciplined approach to stock selection since inception in 2006.

Multidimensional research platform  
Our team benefit from a toolkit like no other which combines fundamental security-specific research with other specialist insights including thematic, ESG-focused, quantitative and investigative research.

Next steps

Global Equity Income

High-conviction strategy seeking to capture and enhance the most statistically significant source of long-term real returns – the compounding of dividends through…

Sustainable Global Equity Income

Find out more about our Sustainable Global Equity Income strategy.

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.

Analysis of themes may vary depending on the type of security, investment rationale and investment strategy. Newton will make investment decisions that are not based on themes and may conclude that other attributes of an investment outweigh the thematic structure the security has been assigned to.

Newton manages a variety of investment strategies. How ESG considerations are assessed or integrated into Newton’s strategies depends on the asset classes and/or the particular strategy involved. ESG may not be considered for each individual investment and, where ESG is considered, other attributes of an investment may outweigh ESG considerations when making investment decisions. ESG considerations do not form part of the research process for Newton’s small cap and multi-asset solutions strategies.

Newton Global Equity Income strategy – 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.
  • High Yield Companies Risk: Companies with high-dividend rates are at a greater risk of 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.