Strategy Highlights

  • Seeking to maximize total returns from capital and income growth
  • Focused on government-bond investments, but can also include securities issued by supranational organizations and government-guaranteed issues
  • Bonds and currencies are actively managed by an experienced fixed-income team with a long track record

This strategy is offered by Newton Investment Management Ltd (‘NIM’). NIM is part of the Newton Investment Management Group.

Our Philosophy and Process

A constantly evolving and forward-looking approach seeks to anticipate change and identify opportunities. The investment team follows a fundamental bottom-up security selection approach and incorporates thematic research.
Material 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.

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.

22
years’ average investment experience
15
years’ average time at Newton

Strategy Profile

Objective

The strategy seeks to outperform the JP Morgan Global Government Bond Index by more than 2% per annum over rolling 5-year periods, by achieving long-term income and capital growth from a portfolio comprised predominantly of government and other public fixed-income securities.

Performance benchmark

JP Morgan Global Government Bond Index

Strategy size

US$0.8bn (as at Sept 30, 2022)

Strategy inception

Composite inception: January 1, 1996

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.

The outperformance target stated is net of fees, for indicative purposes only, and may be changed without notice. Targeted return is generally aspirational in nature, not necessarily based on criteria and assumptions, and is not a guarantee of future returns.

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

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