Global Natural Resources Equity 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

: Our experience and process allow us to thoroughly evaluate commodity fundamentals. We typically allocate among equities with positive leverage to commodities. However, we will also consider allocating to those with more neutral leverage (more levered volume than price) and, at times, those with negative leverage (commodity consumers). As a result, we believe we can effectively manage through an entire cycle, aiming to generate peer-competitive Sharpe ratio performance regardless of market conditions.

We believe that successful natural resources investing is best achieved through a process driven by “commodities first” research across an expansive opportunity set. Evaluation of such a universe requires deep knowledge of each commodity, and we leverage our analysts’ expertise, optimizing information within a framework of oversight and risk management.
: Focused Research: Research coverage is aligned with each analyst’s specific area of commodity expertise.

Expanded Universe: A broader investment universe provides increased opportunity and flexibility.

Selection Driven: Stock selection is conducted by those closest to the information.

Managed Risk: Risk is managed both at the overall portfolio level, as well as the company level. Our multi-tiered risk-management process is designed to identify specific risk factors through standardized and proprietary risk analysis, enabling us to focus on more customized risk factors and sources.

Strategy Profile

Objective: The strategy seeks to provide hard assets exposure and maximize the Sharpe ratio for optimal risk/reward exposure.
Benchmark: S&P Global Natural Resources Index

The S&P Global Natural Resources 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: July 1, 2008

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?

David Intoppa

Research analyst, portfolio manager

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.

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.

Real Estate Investment Trust (REITs): The strategy is subject to risks associated with investing in real estate which may include but is not limited to liquidity constraints arising from difficulties with the disposal of the underlying properties, fluctuations in the value of underlying properties, defaults by borrowers or tenants, market saturation, changes in general and local economic conditions, decreases in market rates for rents, increases in competition, property taxes, capital expenditures or operating expenses and other economic, political or regulatory occurrences affecting companies in the real estate industry.

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.

Investment in Infrastructure Companies Risk: The value of investments in Infrastructure Companies may be negatively impacted by changes in the regulatory, economic or political environment in which they operate.

High Yield companies risk: Companies with high-dividend rates are at a greater risk of not being able to meet these payments and are more sensitive to interest rate risk.