Local government pension schemes
Newton has a long history of working in partnership with local authorities, and has been managing local authority mandates since 1994. Local authorities are experiencing a period of great change, as local government pension schemes collaborate to pool assets and deliver improved outcomes for their members. We have local government pension scheme clients across a number of different pools, which helps us stay attuned to the requirements and developments of this area.
Charities often rely on the proceeds of their investment portfolios to fund valuable projects. We understand that each charity is unique and will have its own investment objective and set of requirements. Whether your charity provides scholarships, funds scientific research or saves lives, we aim to provide you with an effective investment strategy.
Our focus on performance and service has helped us become one of the UK’s leading charity fund managers, with discretionary clients and investors in Newton-managed funds spanning a broad spectrum of charitable causes.
For charities wishing to benefit from the administrative ease of a pooled investment, we offer a large variety of pooled funds to meet a broad range of investor objectives. Several of these funds are charity-specific and therefore have applicable tax advantages. In addition, we manage a large number of portfolios with an ethical orientation, and, as topics such as climate change have risen up the agenda, we have developed significant expertise in sustainable investing.
Defined benefit schemes
In recent years defined benefit (DB) schemes have faced a challenging environment of low interest rates, economic uncertainty and market volatility. At the same time, many schemes have been closing to new entrants, while increasing maturity is leading to rising cash outflows as members retire. In the UK, the flexibility of new pension freedoms is also likely to bring the cash requirements for schemes further forward. Such a backdrop is leading to increasingly negative cash flows, which puts the focus on the cash generated from the investments in a scheme.
Pension fund investment has been at the core of our business since our inception in 1978, and we offer a range of strategies designed to help DB schemes meet their objectives. These include absolute-return strategies, which seek to deliver positive returns irrespective of market conditions. We also offer a range of income products, which could help schemes deliver on their dual objective of generating income to meet cash requirements and growing capital over time, as well as a range of high-conviction strategies.
Defined contribution schemes
The defined contribution sector continues to evolve at a fast pace as the industry works to implement the multitude of regulatory changes introduced in recent years. With the advent of pension freedoms, there is a growing requirement to deliver genuine flexibility at the point of retirement, while the introduction of a fee cap is also having a significant impact on default funds.
Newton is one of the UK’s most prominent active managers of DC pension investments. We work closely with schemes and specialist DC consultants to ensure we fully understand the outcomes that members are looking for and are positioned to offer the right strategies. We believe our actively managed multi-asset and absolute-return strategies are well suited to the specific requirements of DC schemes and their members at each stage of the retirement journey, and we also offer a broad range of equity and fixed-income strategies. Additionally, in response to growing member demand, we have recently introduced a suite of sustainable investment strategies.
Whether you are a life, non-life, reinsurance or health insurance company, we understand the challenges you face and the opportunities you need to harness, including the need to expand and diversify investment options, boost investment performance and maximise liquidity. We offer a range of strategies across all major asset classes designed to help insurers meet their objectives. These include absolute-return strategies, which seek to deliver positive returns irrespective of market conditions. We also offer a range of income products and high-conviction relative-return strategies.
Through BNY Mellon Investment Management
, we work closely with a wide range of financial intermediaries to provide strategies to meet their clients’ particular investment objectives. We bring a focused approach across our comprehensive suite of actively managed equity, fixed-income and multi-asset strategies.
As markets have experienced the effects of unconventional monetary policy, and with income levels on traditional assets such as cash and government bonds having fallen, many sovereign wealth funds and other governmental and supranational organisations have been reassessing their asset allocation. Harnessing BNY Mellon Investment Management’s worldwide presence and local language support, we offer investment strategies designed to meet the performance and diversification requirements of sovereign investors across the world.
Our strategies are available to retail investors via BNY Mellon Investment Management
, which distributes the Newton range of actively managed funds. This relationship preserves our focus on investment, while allowing access to the significant breadth of BNY Mellon’s distribution channels.