Read Our Latest Insight
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Different Approach, Different Outcome
From modest beginnings in the 1970-80s, Dynamic Equity has grown in both stature and scope by delivering a differentiated source of potential excess returns from market structure and asset-allocation decisions. -
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.
Dynamic Equity Seeks to Apply the Benefits of Market Structure and Diversification in Pursuit of Excess Returns
Strategy overview
The strategy seeks to opportunistically combine equity exposure with two key diversifying assets – US Treasury bonds and cash – along with a modest amount of leverage. It aims to create an efficient allocation, based on the long-term risk/return relationship between stocks, bonds and cash, that seeks to deliver more return per unit of risk than an equity-only portfolio.
Fundamental valuation, macro, volatility and tail-risk management are incorporated in the strategy, which historically has led to low downside participation and high upside participation.*
Fundamental valuation, macro, volatility and tail-risk management are incorporated in the strategy, which historically has led to low downside participation and high upside participation.*
Distinguishing characteristics
· Emphasizes capital market principles and classical valuation methods
· Designed to protect downside and capture upside
· Available across multiple benchmarks
· Cost-effective, highly liquid, index-based implementation
· Competitive fee
· Designed to protect downside and capture upside
· Available across multiple benchmarks
· Cost-effective, highly liquid, index-based implementation
· Competitive fee
Three Reasons to Invest in Dynamic Equity
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Longevity
The strategy’s 32-year track record demonstrates the longevity of the approach and our ability to apply financial theory. We believe the underlying premise of the strategy will persist. -
Flexibility
Dynamic Equity has navigated disparate market environments – which demanded a broad range of stock-bond-cash allocations – while maintaining an equity risk profile. -
Diversification
The excess returns are uncorrelated with traditional active equity approaches, which can help to diversify return streams.*
Explore Newton’s Dynamic Equity Strategy
Dynamic Equity targets 200-400 basis points of excess return while maintaining a benchmark risk profile.
* 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.
