Global Emerging Markets Investment Strategy

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

Strategy Overview

We seek to identify companies which have the attributes of resilient growth, quality franchises and strong governance using a bottom-up fundamental approach, in the belief that such businesses can generate high returns on capital and deploy excess capital in growth ventures that may also offer high returns on capital. We aim to buy these businesses at what we deem to be attractive prices, with little regard for their benchmark weightings, and to be prepared to hold them in the portfolio for sufficient time for their compounding potential to be adequately recognized by the market.

Investment Team

The strategy is managed by an experienced 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.

14: years’ average investment experience
5: years’ average time at Newton

Alex Khosla

Portfolio manager, Emerging Markets and Asia Equities team
Zoe Kan

Portfolio manager, emerging markets and Asia equities team
Fei Chen

Investment analyst
Aditya Shah

Portfolio analyst, Emerging Markets and Asia Equities team

Strategy Profile

Benchmark: MSCI Emerging Markets Index

The MSCI Emerging Markets 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.
Strategy inception: August 1, 2005

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.

Newton manages a variety of investment strategies. How ESG considerations are assessed or integrated into Newton’s strategies depends on the asset classes and/or the particular strategy involved. ESG may not be considered for each individual investment and, where ESG is considered, other attributes of an investment may outweigh ESG considerations when making investment decisions. ESG considerations do not form part of the research process for Newton’s small cap and multi-asset solutions strategies.

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.

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.