Strategy profile
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Objective
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The strategy seeks to deliver positive returns on a rolling annualised three-year basis after fees. The strategy aims to deliver positive returns before fees within a range of cash (SONIA (30-day compounded)) on a rolling annualised three-year basis and cash (SONIA (30-day compounded)) + 4% per annum on a rolling annualised five-year basis. However, positive returns are not guaranteed and a capital loss may occur.
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Performance benchmark
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The strategy will measure its performance before fees against SONIA (30-day compounded) on a rolling annualised three-year basis (the ‘three-year benchmark’) and SONIA (30-day compounded) +4% per annum on a rolling annualised five-year basis (the ‘five-year benchmark’).*
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Volatility
- Expected to be between that of bonds and equities over the long term
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Typical assets
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Selective exposure to
- Equities
- Corporate bonds
- Government bonds
- Cash derivatives
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Other assets via tradeable securities
- Real estate
- Commodities
- Currencies
- Infrastructure
- Renewable energy
- Other ‘alternative’ strategies
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Literature
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- * 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%.
Investment team
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- Our Real Return strategy is managed by an experienced team with a wide range of backgrounds. In-house research analysts are at the core of our investment process, and our multidimensional research platform spans fundamental, thematic, responsible investment, quantitative, geopolitical, investigative and private-market research to promote better-informed investment decisions.
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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.
ESG can be one of many inputs into the fundamental analysis. Newton will make investment decisions that are not based solely on ESG analysis. Other attributes of an investment may outweigh ESG analysis when making investment decisions. The way that material ESG analysis is assessed may vary depending on the asset class and strategy involved. As of September 2022, the equity investment team performs ESG analysis on equity securities prior to their recommendation. ESG analysis is not performed for all fixed-income securities. The portfolio managers may purchase equity securities that are not formally recommended and for which ESG analysis has not been performed.