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 themes to help identify opportunities.

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

RI report Global dynamic bond

Responsible investment report

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

Investment Team

This strategy is managed by a focused, experienced fixed-income 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.

Want to find out more?

Paul Brain
Paul Brain

Deputy chief investment officer of Multi-Asset

Howard Cunningham
Howard Cunningham

Portfolio manager, Fixed Income team

Jon Day
Jon Day

Portfolio manager, Fixed Income team

Carl Shepherd
Carl Shepherd

Portfolio manager, Fixed Income team

Parmeshwar Chadha
Parmeshwar Chadha

Portfolio manager, fixed income

Trevor Holder
Trevor Holder

Portfolio manager, Fixed Income team

Ella Hoxha
Ella Hoxha

Head of Fixed Income

Catherine Doyle
Catherine Doyle

Investment specialist

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Welcome to WordPress. This is your first post. Edit or delete it, then start blogging!

Welcome to WordPress. This is your first post. Edit or delete it, then start blogging!

Welcome to WordPress. This is your first post. Edit or delete it, then start blogging!

Welcome to WordPress. This is your first post. Edit or delete it, then start blogging!

Welcome to WordPress. This is your first post. Edit or delete it, then start blogging!

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. It is one of 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

  • 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.