Blockchain Innovation Investment Strategy

This strategy is offered by Newton Investment Management North America LLC (‘NIMNA’) in the United States. NIMNA is part of the Newton Investment Management Group.

Strategy Highlights

The underlying concept of blockchain technology is the placement of any asset on a digital system, also known as a ledger, to record and validate any transaction type. The technology is an integral part of the broader digital transformation that is underway, which is fundamentally changing the way all businesses are operating and delivering value to customers. Key return drivers of companies that embrace blockchain technology include both revenue growth and cost saving opportunities.

Our global fundamental research platform comprises over 40 analysts who leverage their extensive expertise across specific industries and geographies to identify companies that align with the theme. Leveraging that expertise, we assign a proprietary materiality ranking to a company before adding it to our universe.

We then select from this universe, initially targeting 30 to 50 holdings that represent the strongest opportunity to develop significant exposure to the theme. The fundamental portfolio manager initially determines position sizing.

Learn more about our multidimensional investment philosophy

Strategy Profile

Objective: The strategy seeks to generate returns through a disciplined, concentrated equity portfolio that is designed to benefit from investment opportunities in blockchain. We seek companies that are utilizing blockchain technology and platforms to reduce costs or accelerate growth through the creation of secure, efficient, trusted and overall more robust platforms for transactions and assets.
Performance Benchmark: MSCI ACWI

The MSCI ACWI 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.
Strategy inception: March 1, 2019

Investment Team

The 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 capabilities help to promote better-informed investment decisions.

Want to find out more?

Brock Campbell

Head of global equity research

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.

Emerging Markets Risk: Emerging Markets have additional risks due to less-developed market practices.

Market Capitalisation Risk: Investing in small companies may be riskier and less liquid (i.e. harder to sell) than large companies. This means that their share prices may have greater fluctuations.

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.

Blockchain Innovation Companies Risk: The value of securities of Blockchain Innovation Companies may be negatively impacted by changes in regulation and are dependent upon consumer and business acceptance of the distributed ledger technology. Distributed ledger technology is a new and relatively untested technology which could be vulnerable to fraud. The strategy’s value may be more subject to risks of developing technologies, competitive pressures and intellectual property rights challenges.