Past performance is not a guide to future performance. 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.

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 primarily invests in 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.

Performance

From Jun 19 Jun 18 Jun 17 Jun 16 Jun 15
To Jun 20 Jun 19 Jun 18 Jun 17 Jun 16
Newton Global Emerging
Markets strategy (gross)
14.03 -3.72 5.93 26.34 -3.94
Newton Global Emerging
Markets strategy (net)
13.18 -4.43 5.15 25.40 -4.66
Performance
benchmark
-3.39 1.20 8.20 23.75 -12.06

Source: Newton Global Emerging Markets strategy, total return, income reinvested, in USD, June 30, 2020. Net of fees performance quoted with 0.75% annual management charges.

Performance is stated gross and net of management fees. The gross performance figures do not reflect the deduction of investment advisory fees. The client’s return will be reduced by the advisory fees and any other expenses it may incur in the management of its investment advisory account. The investment advisory fees are described in Part 2 of the adviser’s Form ADV, which can be obtained from the SEC.gov website or obtained upon request.

The MSCI Emerging Markets NDR Index performance benchmark is used as a comparator for this strategy. Information about the indices shown here is provided to allow for comparison of the performance of the strategy to that of certain well-known and widely recognized indices. There is no representation that such index is an appropriate benchmark for such comparison.

Find out more about the Global Emerging Markets strategy

Top 10 Security Contributors Relative to MSCI Emerging Markets NDR Index – 3 Months to June 30, 2020

Security

Net management effect
Meituan Dianping

1.85
Samsung SDI Co Ltd

1.47
Globant SA

1.29
Iljin Materials Co Ltd

1.01
MercadoLibre Inc

0.65
Prosus NV

0.44
Delivery Hero SE

0.40
Info Edge (India) Limited

0.35
EPAM Systems Inc

0.30
Maruti Suzuki India Ltd

0.27


Bottom 10 Security Contributors Relative to MSCI Emerging Markets NDR Index – 3 Months to June 30, 2020

Security

Net management effect
AIA Group Ltd

-0.54
Clicks Group Ltd

-0.40
PVR Ltd

-0.37
Asian Paints Ltd

-0.37
Titan Company Ltd

-0.35
Housing Development Finance

-0.27
Reliance Industries

-0.27
Autohome Inc

-0.25
Tencent Holdings Ltd

-0.21
MediaTek Inc

-0.18


Source: Newton, Global Emerging Markets representative portfolio as of June 30, 2020. The representative portfolio adheres to the same strategy as the Newton Global Emerging Markets Equity strategy. Each client portfolio is individually managed. Actual holdings will vary for each client and there is no guarantee that a particular portfolio will have some or all of the characteristics described in the representative portfolio shown.

Newton believes this performance update contains a balanced presentation of the performance of the strategy, including a general summary of certain holdings of the strategy that have both over- and underperformed the expectations of our strategy. The attribution methodology and a full list of every holding’s contribution to the overall portfolio’s performance during the measurement period is available upon request.

The portfolio data included herein should not be relied upon as a complete listing of the strategy’s holdings (or of a representative strategy’s top and bottom holdings) as information on particular holdings may be withheld if it is in the strategy’s best interest to do so. Strategy holdings are subject to change without notice and may not represent current or future strategy composition. The portfolio date is ‘as of’ the date indicated. Stock position information refers to the representative strategy and not the composition of the performance benchmark.

Activity Review – Purchases and Sales

The securities mentioned are accurate as of June 30, 2020 and were selected based on the following criteria: three largest purchases and three largest sales during the three months to June 30, 2020. The specific securities identified are not representative of all of the securities purchased, sold or recommended for advisory clients, and actual holdings may vary by client. It should not be assumed that an investment in the securities identified was or will be profitable.

Important Informatio

This is a financial promotion. This document is for institutional investors only. Issued by Newton Investment Management Limited, The Bank of New York Mellon Centre, 160 Queen Victoria Street, London, EC4V 4LA. Registered in England No. 01371973. Newton Investment Management is authorized and regulated by the Financial Conduct Authority, 12 Endeavour Square, London, E20 1JN and is a subsidiary of The Bank of New York Mellon Corporation. ‘Newton’ and/or ‘Newton Investment Management’ brand refers to Newton Investment Management Limited. Newton is registered with the SEC as an investment adviser under the Investment Advisers Act of 1940. Newton’s investment business is described in Form ADV, Part 1 and 2, which can be obtained from the SEC.gov website or obtained upon request.

Personnel of certain of our BNY Mellon affiliates may act as: (i) registered representatives of BNY Mellon Securities Corporation (in its capacity as a registered broker-dealer) to offer securities, (ii) officers of the Bank of New York Mellon (a New York chartered bank) to offer bank-maintained collective investment funds, and (iii) Associated Persons of BNY Mellon Securities Corporation (in its capacity as a registered investment adviser) to offer separately managed accounts managed by BNY Mellon Investment Management firms, including Newton.

Certain information contained herein is based on outside sources believed to be reliable, but their accuracy is not guaranteed. Unless you are notified to the contrary, the products and services mentioned are not insured by the FDIC (or by any governmental entity) and are not guaranteed by or obligations of The Bank of New York or any of its affiliates. The Bank of New York assumes no responsibility for the accuracy or completeness of the above data and disclaims all expressed or implied warranties in connection therewith. © 2020 The Bank of New York Company, Inc. All rights reserved.

This video is for informational purposes and should not be taken as a recommendation to purchase any individual securities. Newton closely monitors its positions and may make changes to the portfolio’s investment strategy when warranted by changing market conditions. If a security’s underlying fundamentals or valuation measures change, Newton will re-evaluate its position and may sell part or all of its position. There is no guarantee that, should market conditions repeat, this security will perform in the same way in the future. There is no guarantee that the opinions expressed herein will be valid beyond the date of this video. There can be no assurance that the strategy will continue to hold the same position in companies described herein, and the strategy may change any portfolio position at any time.

Material in this publication is for general information only. The opinions expressed in this document are those of Newton and should not be construed as investment advice or recommendations for any purchase or sale of any specific security or commodity. Any reference to a specific country or sector should not be construed as a recommendation to buy or sell this country or sector. Please note that strategy holdings and positioning are subject to change without notice.

Information about the indices shown here is provided to allow for comparison of the performance of the strategy to that of certain well-known and widely recognized indices. There is no representation that such index is an appropriate benchmark for such comparison. You cannot invest directly in an index and the indices represented do not take into account trading commissions and/or other brokerage or custodial costs. The volatility of the indices may be materially different from that of the strategy. In addition, the strategy’s holdings may differ substantially from the securities that comprise the indices shown.

Share