Newton has a well established approach to responsible investment, which is integral to our investment process. On behalf of our clients, Newton’s responsible investment team is charged with exercising voting rights, conducting research and carrying out engagement activities on environmental, social and governance (ESG) matters. We believe that responsibly managed companies are best placed to achieve sustainable competitive advantage and provide strong long-term investment opportunities.
Newton’s global sector analysts research for companies that deliver strong long-term performance. The full-time Corporate governance officer, Head of responsible investment and two ESG investment analysts are members of this research team. This ensures that Newton’s investment rationale for a company is supported through research into ESG matters, voting decisions and engagement work.
The work of Newton’s responsible investment team is not necessarily geared towards the exclusion of potential investments, rather it aims to achieve a better understanding of the relevant ESG risks or seeks an improvement in the behaviour of the investee company. This is achieved, in part, by formal ESG quality reviews that the team conducts on all stocks recommended by Newton’s global sector analysts.
Newton publishes reports regularly on its responsible investment activities. A quarterly report is produced which provides details of voting decisions, together with research and engagement undertaken by the responsible investment team. In addition, focus reports are published on topical and relevant ESG issues.
Newton complies with each of the seven principles of the UK Stewardship Code, which is overseen by the Financial Reporting Council. The Code aims to enhance engagement between institutional investors and companies. We obtained an independent assurance opinion of our stewardship activities for the year 2014 as recommended by the UK Stewardship Code. While the auditor explicitly prohibits us from publishing the opinion and report, the auditor permits us to disclose these upon request.