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About Newton

Newton’s story is one of purpose – to improve people’s lives by investing in a way that strives to deliver attractive outcomes to our clients and to help foster a healthy and vibrant world for all.

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Featured strategies

We focus on delivering outcomes for our clients across equity opportunities, income, absolute return (including fixed income), multi-asset, thematic and sustainable strategies.

Strategy highlights

: Actively managed, absolute-return investment approach, with an emphasis on capital preservation
A focus on security selection, asset class flexibility and simple hedging strategies – to manage risk and offer investors the potential to enjoy attractive long-term total returns
Flexible, transparent, single portfolio of predominantly direct and liquid investments

Our philosophy and process

The Real Return strategy has a simple structure, with a stable core of predominantly traditional return-seeking assets, and a layer of risk-offsetting positions which aim to dampen volatility and preserve capital. Material ESG (environmental, social and governance) risks, opportunities and issues are considered as part of the investment research process.
The strategy is conviction-based, with no regional, sector or performance reference constraints. 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 a range of global investment themes to capture these.

Investment team

Our Real Return strategy is managed by an experienced team with a wide range of backgrounds. Our investment team of research analysts and portfolio managers works together across regions and sectors, helping to ensure that our investment process is highly flexible. Guided by our global investment themes, we seek to identify opportunities and risks through research and debate.

20: years’ average investment experience
15: years’ average time at Newton

Suzanne Hutchins

Portfolio manager, Real Return team
Aron Pataki

Portfolio manager, Real Return team
Andy Warwick

Portfolio manager, Real Return team
Lars Middleton

Portfolio manager, Real Return team
Philip Shucksmith

Portfolio manager, Real Return team
Matt Brown

Portfolio manager, Real Return team
Brendan Mulhern

Global strategist, Real Return team
Catherine Doyle

Investment specialist
Chris King

Investment team support

Strategy profile

Objective: The strategy aims to achieve a rate of return in sterling terms that is equal to or above a minimum return from cash (SONIA (30-day compounded)) +4% per annum over five years before fees. In doing so, it aims to achieve a positive return on a rolling three-year basis (meaning a period of three years, no matter which day you start on). However, capital is in fact at risk and there is no guarantee that this will be achieved over that, or any, time period.
Performance benchmark: SONIA (30-day compounded) +4%*
Volatility: Expected to be between that of bonds and equities over the long term
Typical assets: Selective exposure to

Equities
Corporate bonds
Government bonds
Cash derivatives; Other assets via tradeable securities

Real estate
Commodities
Currencies
Infrastructure
Renewable energy
Other ‘alternative’ strategies
: View fund performance
Key Investor Information Document (KIID)
Prospectus
: * Please note that on 1 October 2021, the performance benchmark for this strategy changed from 1-month GBP LIBOR +4% to SONIA (30-day compounded) +4%.

Read more about the transition from LIBOR to SONIA in relation to onshore UK pooled funds

Responsible investment report

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

Download Report

Brochure

More detail on the strategy’s investment brochure

Download Brochure

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.

ESG analysis may vary depending on the type of security, investment rationale and investment strategy. Newton does not currently view certain types of investments as presenting ESG risks, opportunities and/or issues, and believes it is not practicable to evaluate such risks, opportunities and/or issues for certain other investments. In addition, Newton will make investment decisions that are not based solely on ESG considerations. In some cases, therefore, Newton may conclude that other attributes of an investment outweigh ESG considerations when making investment decisions.

Key investment risks

: Performance aim 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.
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.
Changes in interest rates & inflation risk: Investments in bonds/money market securities are affected by interest rates and inflation trends which may negatively affect the value of the strategy.
Credit ratings and unrated securities risk: Bonds with a low credit rating or unrated bonds have a greater risk of default. These investments may negatively affect the value of the strategy.
Credit risk: The issuer of a security held by the strategy may not pay income or repay capital to the strategy when due.
Emerging markets risk: Emerging Markets have additional risks due to less-developed market practices.
Liquidity risk: The strategy may not always find another party willing to purchase an asset that the strategy wants to sell which could impact the strategy’s ability to sell the asset or to sell the asset at its current value.
Shanghai-Hong Kong Stock Connect and/or the Shenzhen-Hong Kong Stock Connect (‘Stock Connect’) risk: The strategy may invest in China A shares through Stock Connect programmes. These may be subject to regulatory changes and quota limitations. An operational constraint such as a suspension in trading could negatively affect the strategy’s ability to achieve its investment objective.
CoCos risk: Contingent convertible securities (CoCos) convert from debt to equity when the issuer’s capital drops below a pre-defined level. This may result in the security converting into equities at a discounted share price, the value of the security being written down, temporarily or permanently, and/or coupon payments ceasing or being deferred.
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.

Video

Real Return – quarterly outlook

Suzanne Hutchins discusses the impacts of inflation, geopolitical uncertainty and rising interest rates on markets.

14 November 2022

Macro views, Real Return

Video

Sustainable Real Return – quarterly outlook

Phil Shucksmith and Catherine Doyle explore climate change, COP 27 and the market outlook.

10 November 2022

Macro views, Real Return, Sustainable

Blog

Keeping the lights switched on

Energy security and decarbonisation: are they mutually exclusive?

Philip Shucksmith

25 August 2022

Real Return, Responsible investment, Sustainable

Strategy highlights

: Embedding environmental, social and governance (ESG) analysis to look beyond the financial statements
Investing in issuers that positively manage the material impacts of their operations and products on the environment and society, while actively omitting those involved in areas of high social cost, environmental degradation or violators of the UN Global Compact Principles
Seeks to achieve its objective with reduced volatility through security selection, asset-type flexibility and an emphasis on capital preservation

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.

The strategy is conviction-based, with no regional, sector or performance reference constraints. It has a simple structure, with a stable core of predominantly traditional return-seeking assets, and a layer of risk-offsetting positions which aim to dampen volatility and preserve capital.

Sustainable ‘red lines’, with responsible investment team validation, seek to ensure there is no investment in security issuers that:
: Breach the UN Global Compact
Are incompatible with a 2˚C world
Are deemed to have material ESG risks which are likely to negatively affect future performance and are associated with significant social or environmental harm
: The strategy seeks to avoid investing in companies that participate in specific areas of activity that we deem to be harmful from an environmental and/or social 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 a range of global investment themes to capture these.

Investment team

Our Sustainable Real Return strategy is managed by an experienced team with a wide range of backgrounds. Our investment team of research analysts and portfolio managers works together across regions and sectors, helping to ensure that our investment process is highly flexible. Guided by our global investment themes, we seek to identify opportunities and risks through research and debate.

20: years’ average investment experience
15: years’ average time at Newton

Matt Brown

Portfolio manager, Real Return team
Suzanne Hutchins

Portfolio manager, Real Return team
Aron Pataki

Portfolio manager, Real Return team
Philip Shucksmith

Portfolio manager, Real Return team
Andy Warwick

Portfolio manager, Real Return team
Lars Middleton

Portfolio manager, Real Return team
Brendan Mulhern

Global strategist, Real Return team
Catherine Doyle

Investment specialist
Chris King

Investment team support

Strategy profile

Objective: The strategy aims to achieve a rate of return in sterling terms that is equal to or above the return from cash (SONIA (30-day compounded)) +4% per annum over five years before fees. In doing so, it aims to achieve a positive return on a rolling three-year basis (meaning a period of three years, no matter which day you start on). However, capital is in fact at risk and there is no guarantee that this will be achieved over that, or any, time period.
Performance benchmark: SONIA (30-day compounded) +4%*
Volatility: Expected to be between that of bonds and equities over the long term
Literature: Key Investor Information Document (KIID)
Prospectus
: * Please note that on 1 October 2021, the performance benchmark for this strategy changed from 1-month GBP LIBOR +4% to SONIA (30-day compounded) +4%.

Responsible investment report

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

Download Report

Brochure

More detail on the strategy’s investment approach.

Download Brochure

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 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 Quality Reviews are performed prior to investment for corporate investments (single name equity and fixed income securities).

Key investment risks

: Performance aim 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.
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.
Changes in interest rates & inflation risk: Investments in bonds/money market securities are affected by interest rates and inflation trends which may negatively affect the value of the strategy.
Credit ratings and unrated securities risk: Bonds with a low credit rating or unrated bonds have a greater risk of default. These investments may negatively affect the value of the strategy.
Credit risk: The issuer of a security held by the strategy may not pay income or repay capital to the strategy when due.
Emerging markets risk: Emerging Markets have additional risks due to less-developed market practices.
Shanghai-Hong Kong Stock Connect and/or the Shenzhen-Hong Kong Stock Connect (‘Stock Connect’) risk: The strategy may invest in China A shares through Stock Connect programmes. These may be subject to regulatory changes and quota limitations. An operational constraint such as a suspension in trading could negatively affect the strategy’s ability to achieve its investment objective.
CoCos risk: Contingent convertible securities (CoCos) convert from debt to equity when the issuer’s capital drops below a pre-defined level. This may result in the security converting into equities at a discounted share price, the value of the security being written down, temporarily or permanently, and/or coupon payments ceasing or being deferred.
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.
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.
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.

Video

Sustainable Real Return – quarterly outlook

Phil Shucksmith and Catherine Doyle explore climate change, COP 27 and the market outlook.

10 November 2022

Macro views, Real Return, Sustainable

Article

Defining our approach to net zero

Find out how Newton is tackling the thorny issues in its drive towards net-zero carbon emissions.

08 June 2022

Defined contribution, Emerging markets & Asia, Newton philosophy, Responsible investment, Sustainable

Strategy highlights

: Bond asset-class exposure managed dynamically and driven by market opportunities and risks, unconstrained by an index
The flexibility to use stabilising assets and hedging positions to provide downside protection and preserve capital
Investing globally to provide diversification and take advantage of the divergence between the prospects of different countries

Our philosophy and process

: The strategy follows an unconstrained, highly dynamic asset-allocation approach within a broad universe of global bonds; it can invest in government bonds, emerging-market sovereigns, high-yield bonds and investment-grade corporate debt. The strategy has the flexibility to manage currency exposure actively to generate additional returns.; A constantly evolving and forward-looking approach seeks to anticipate change, manage risk, and identify opportunities. Material and relevant 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 a range of global investment themes to capture these.

Investment team

Our Global Dynamic Bond strategy is managed by a focused, experienced fixed-income team. Our investment team of research analysts and portfolio managers works together across regions and sectors, helping to ensure that our investment process is highly flexible. Guided by our global investment themes, we seek to identify opportunities and risks through research and debate.

21: years’ average investment experience
15: years’ average time at Newton

Paul Brain

Investment leader, fixed income
Parmeshwar Chadha

Portfolio manager, fixed income
Howard Cunningham

Portfolio manager, fixed income
Jon Day

Portfolio manager, fixed income
Carl Shepherd

Portfolio manager, fixed income
Trevor Holder

Portfolio manager, fixed income
Scott Freedman

Analyst and portfolio manager, fixed income
Martin Chambers

Credit analyst, fixed income
Ashwin Palta

Credit research analyst, fixed income
Jeevan Dhoot

Credit analyst, fixed income
Catherine Doyle

Investment specialist

Strategy profile

Objective: The strategy seeks to maximise the total return, comprising income and capital growth. It is managed to seek a minimum return of cash (SONIA (30-day compounded)) +2% per annum over five years before fees. In doing so, it aims to achieve a positive return on a rolling three-year basis (meaning a period of three years, no matter which day you start on). However, a positive return is not guaranteed and a capital loss may occur.
Performance benchmark: SONIA (30-day compounded) +2%
Literature: Key Investor Information Document (KIID)
Prospectus

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 considerations are assessed may vary depending on the asset class and strategy involved. The research team performs ESG Quality Reviews on equity securities prior to their addition to Newton’s Research Recommended List (RRL). ESG Quality 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 Quality Reviews. Not all securities held by Newton’s strategies have an ESG Quality Review completed prior to investment, although since 2020 it has been a requirement for all (single name) equity securities to have an ESG Quality Review before they are purchased for the first time.

Key investment risks

: Performance aim 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.
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.
Changes in interest rates & inflation risk: Investments in bonds/money market securities are affected by interest rates and inflation trends which may negatively affect the value of the strategy.
Credit ratings and unrated securities risk: Bonds with a low credit rating or unrated bonds have a greater risk of default. These investments may negatively affect the value of the strategy.
Credit risk: The issuer of a security held by the strategy may not pay income or repay capital to the strategy when due.
Emerging markets risk: Emerging Markets have additional risks due to less-developed market practices.
CoCos risk: Contingent convertible securities (CoCos) convert from debt to equity when the issuer’s capital drops below a pre-defined level. This may result in the security converting into equities at a discounted share price, the value of the security being written down, temporarily or permanently, and/or coupon payments ceasing or being deferred.
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.

Video

Fixed income – quarterly outlook

Paul Brain explains why now could be a good time for investors to look for opportunities in fixed income.

14 November 2022

Fixed income, Macro views

Exploring sustainable innovation with Iceland

Article

Influencing sustainable innovation at Iceland

Our fixed income team engaged with the retailer to discuss palm oil, greenwashing and more.

24 August 2022

Fixed income, Responsible investment, Sustainable

Fixed-income solutions for a challenging market backdrop

Article

Fixed-income solutions for a challenging investment backdrop

Using fixed income to help navigate a rising interest-rate environment.

23 May 2022

Fixed income, Macro views

Strategy highlights

: Benefits from a broad perspective owing to our global, thematic outlook
Flexibility to deviate from the benchmark and to invest directly in a range of opportunities globally
Stock selection driven by bottom-up proprietary research which incorporates consideration of environmental, social and governance (ESG) risks, issues and opportunities

Our philosophy and process

: The strategy is conviction-based, with no regional or sector constraints. A constantly evolving and forward-looking approach seeks to anticipate change, manage risk, and identify opportunities.; Material and relevant ESG risks, issues and opportunities are considered as part of the investment 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 a range of global investment themes to capture these.

Investment team

Our Global Equity strategy is managed by a team with a wide range of backgrounds and varied experience. Our investment team of research analysts and portfolio managers works together across regions and sectors, helping to ensure that our investment process is highly flexible. Guided by our global investment themes, we seek to identify opportunities and risks through research and debate.

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

Paul Markham

Head of Global Opportunities
Simon Nichols

Portfolio manager, Global Opportunities team
Karen Miki Behr

Portfolio manager, Global Opportunities team
Jonathan Dennis

Portfolio analyst, Global Opportunities team
Duncan Bulgin

Portfolio manager, Global Opportunities team

Strategy profile

Objective: The strategy seeks achieve capital growth over the long term (5 years or more).
Performance benchmark: MSCI AC World Index (NDR)
Typical number of equity holdings: 50 to 80
Literature: Key Investor Information Document (KIID)
Prospectus

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 considerations are assessed may vary depending on the asset class and strategy involved. The research team performs ESG quality reviews on equity securities prior to their addition to Newton’s research recommended list (RRL). ESG quality 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 quality reviews. Not all securities held by Newton’s strategies have an ESG quality review completed prior to investment, although since 2020 it has been a requirement for all (single name) equity securities to have an ESG quality review before they are purchased for the first time.

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.
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.

Video

Global Equity – quarterly outlook

Paul Markham outlines how geopolitics, energy prices and the possibility of recession are affecting equity markets.

14 November 2022

Global equities, Macro views

Blog

Global infrastructure: Tangible assets for tangible returns?

Global infrastructure securities can hold up as a buffer in this inflationary environment.

James A Lydotes

17 October 2022

Global equities, Sector research

Audio

Why now for US small and mid-cap investments?

Hear equity CIO John Porter discuss investment opportunities within the US small and mid-cap sector.

23 June 2022

Global equities, Macro views

Strategy highlights

: Embedding environmental, social and governance (ESG) analysis to look beyond the financial statements
Investing in sustainable sovereign bonds, and bonds of companies that positively manage the material impacts of their operations and products on the environment and society
Global investment universe, with the flexibility to use stabilising assets and hedging positions to provide downside protection

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.

Our fixed-income team aims to identify positive ESG behaviour in issuers within a broad investment universe. Our focus is on companies (or sovereigns) that are run for the long term, seeking to effectively balance the interests of all stakeholders and actively managing the material risks for their industry (or economy) in order to deliver more resilient returns for investors.

Sustainable ‘red lines’, with responsible investment team validation, seek to ensure there is no investment in security issuers that:
: Breach the UN Global Compact
Are incompatible with a 2˚C world
Are deemed to have material ESG risks which are likely to negatively affect future performance and are associated with significant social or environmental harm
: The strategy seeks to avoid investing in companies that participate in specific areas of activity that we deem to be harmful from an environmental and/or social perspective.

The strategy follows an unconstrained, highly dynamic asset-allocation approach within a broad universe of global bonds; it can invest in government bonds, emerging-market sovereigns, high-yield bonds and investment-grade corporate debt. The strategy has the flexibility to manage currency exposure actively to generate additional returns.

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 a range of global investment themes to capture these.

Investment team

Our Sustainable Global Dynamic Bond strategy is managed by a focused, experienced fixed-income team. Our investment team of research analysts and portfolio managers works together across regions and sectors, helping to ensure that our investment process is highly flexible. Guided by our global investment themes, we seek to identify opportunities and risks through research and debate.

21: years’ average investment experience
15: years’ average time at Newton

Howard Cunningham

Portfolio manager, fixed income
Scott Freedman

Analyst and portfolio manager, fixed income
Martin Chambers

Credit analyst, fixed income
Paul Brain

Investment leader, fixed income
Parmeshwar Chadha

Portfolio manager, fixed income
Jon Day

Portfolio manager, fixed income
Carl Shepherd

Portfolio manager, fixed income
Trevor Holder

Portfolio manager, fixed income
Ashwin Palta

Credit research analyst, fixed income
Jeevan Dhoot

Credit analyst, fixed income
Catherine Doyle

Investment specialist

Strategy profile

Objective: The strategy seeks to achieve income and capital growth over the medium term (3-5 years). It is managed to seek a minimum return of cash (SONIA (30-day compounded)) +2% per annum over five years before fees. In doing so, it aims to achieve a positive return on a rolling three-year basis (meaning a period of three years, no matter which day you start on). However, a positive return is not guaranteed and a capital loss may occur.
Performance benchmark: SONIA (30-day compounded) +2%.
Literature: Key Investor Information Document (KIID)
Prospectus

RI report Sustainable global dynamic bond

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 considerations are assessed and the assessment of their suitability for NIM’s sustainable strategies may vary depending on the asset class and strategy involved. For Newton’s sustainable strategies, ESG Quality Reviews are performed prior to investment for corporate investments (single name equity and fixed income securities).

Key investment risks

: Objective/performance risk: There is no guarantee that the strategy will achieve its objectives.
Performance aim 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.
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.
Changes in interest rates & inflation risk: Investments in bonds/money market securities are affected by interest rates and inflation trends which may negatively affect the value of the strategy.
Credit ratings and unrated securities risk: Bonds with a low credit rating or unrated bonds have a greater risk of default. These investments may negatively affect the value of the strategy.
Credit risk: The issuer of a security held by the strategy may not pay income or repay capital to the strategy when due.
Emerging markets risk: Emerging Markets have additional risks due to less-developed market practices.
CoCos risk: Contingent convertible securities (CoCos) convert from debt to equity when the issuer’s capital drops below a pre-defined level. This may result in the security converting into equities at a discounted share price, the value of the security being written down, temporarily or permanently, and/or coupon payments ceasing or being deferred.
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.

Video

Fixed income – quarterly outlook

Paul Brain explains why now could be a good time for investors to look for opportunities in fixed income.

14 November 2022

Fixed income, Macro views

Article

Defining our approach to net zero

Defining Newton's approach to driving down carbon emissions.

08 June 2022

Defined contribution, Emerging markets & Asia, Newton philosophy, Responsible investment, Sustainable

Article

Fixed-income solutions for a challenging investment backdrop

Using fixed income to help navigate a rising interest-rate environment.

23 May 2022

Fixed income, Macro views

Strategy highlights

: Fundamental bottom-up research
Global thematic approach to investing targets areas with strong growth potential, not ‘old’ profit pools
Focus on ‘compounders’ – exceptional, leading businesses with long-term growth potential

Our philosophy and process

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

Three overarching themes aligned with UN Sustainable Development Goals – Earth, health and wealth.

Sustainable ‘red lines’, with responsible investment team validation, seek to ensure there is no investment in security issuers that:
: Breach the UN Global Compact
Are incompatible with a 2˚C world
Are deemed to have material ESG risks which are likely to negatively affect future performance and are associated with significant social or environmental harm.
: 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 a range of global investment themes to capture these.

Investment team

Our Sustainable Global Emerging Markets strategy is managed by an experienced team. Our investment team of research analysts and portfolio managers works together across regions and sectors, helping to ensure that our investment process is highly flexible. Guided by our global investment themes, we seek to identify opportunities and risks through research and debate.

15: years’ average investment experience
07: years’ average time at Newton

Paul Birchenough

Portfolio manager, Global Opportunities team
Alex Khosla

Portfolio manager, Global Opportunities team
Ian Smith

Portfolio manager, Global Opportunities team
Zoe Kan

Portfolio manager, emerging and Asian equity income
Julianne McHugh

Head of Sustainable Equities
Nick Pope

Portfolio manager, sustainable equity strategies
Fei Chen

Portfolio manager, global research
Aditya Shah

Portfolio analyst, Global Opportunities team

Strategy profile

Objective: To achieve long-term capital growth over the long term (5 years or more).
Performance benchmark: MSCI Emerging Markets Index (NDR)
Typical number of equity holdings: Typically 45-65 holdings
Strategy inception: December 2021
Strategy available through pooled UK vehicle: BNY Mellon Sustainable Global Emerging Markets Fund

Brochure

More detail on the strategy’s investment approach

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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 considerations are assessed and the assessment of their suitability for NIM’s sustainable strategies may vary depending on the asset class and strategy involved. For Newton’s sustainable strategies, ESG Quality Reviews are performed prior to investment for corporate investments (single name equity and fixed income securities).

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.
Geographic concentration risk: The strategy may have substantial investment exposure to 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.
Shanghai-Hong Kong Stock Connect and/or the Shenzhen-Hong Kong Stock Connect (‘Stock Connect’) risk: The strategy may invest in China A shares through Stock Connect programmes. These may be subject to regulatory changes and quota limitations. An operational constraint such as a suspension in trading could negatively affect the strategy’s ability to achieve its investment objective.
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.
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.

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