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Objective
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The strategy seeks to outperform a global benchmark of 60% equities and 40% bonds through a multi-strategy approach. However, a positive return is not guaranteed and a capital loss may occur.
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Performance Benchmark
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The 60% MSCI ACWI and 40% FTSE GDP-Weighted World Government Bond Index, both half USD hedged, performance benchmark is used as a comparator for this strategy. The strategy does not aim to replicate either the composition or the performance of the performance benchmark.
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Risk
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Targets up to 5% tracking error (active risk) versus the benchmark.
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Strategy Inception
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September 01, 2005
Strategy Highlights
- Targets outperformance of the 60/40 benchmark through five diversified alpha strategies: tactical asset allocation, equity index relative value, bond relative value, currency relative value and commodity relative value.
- Systematic investment approach with dynamic allocation that re-assesses opportunities daily.
- Can function as an active overlay or global equity substitute with less volatility.
- Newton Multi-Asset Solutions draws on a strong pedigree of fundamentally-based, systematic solutions dating back to 1983.
Investment Team
Newton’s multi-asset solutions (MAS) team creates robust, risk-efficient outcomes through a fundamentally driven and systematically delivered investment process. The MAS team has over 40 years’ history of innovating portfolio solutions which aim to meet clients’ investment challenges and objectives.
A team of 13 investment professionals
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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.
- 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 and 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.
- 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.
