Our philosophy and process

  • The strategy is conviction-based, with no regional or sector constraints. Portfolios tend to hold stocks of cash-generative companies with highly attractive dividend yields. The strategy employs a valuation screen to help portfolios in their aim to achieve a dividend yield above that of the index.
  • A constantly evolving and forward-looking approach seeks to anticipate change, manage risk, and identify opportunities.
  • ESG considerations are integrated throughout the research process and via proprietary quality reviews, to ensure that any material issues are captured.

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 a range of global investment themes to capture these.

State intervention Smart revolution Net effects Financialisation

Investment team

Our Global Equity Income strategy is managed by an experienced team. Our global sector analysts and investment managers are located on a single floor in London, which helps to ensure that the investment process is flexible and opportunistic. Guided by our global investment themes, the team works together to identify opportunities and risks through research and debate.

17
years' average investment experience
13
years' average time at Newton
  • Ilga Haubelt
    Ilga Haubelt

    Head of Equity Income

  • Robert Hay
    Robert Hay

    Portfolio manager, global equity income

  • Paul Flood
    Paul Flood

    Portfolio manager, global equity income

  • Jon Bell
    Jon Bell

    Portfolio manager, global equity income

  • Zoe Kan
    Zoe Kan

    Portfolio manager, emerging and Asian equity income

  • Emma Mogford
    Emma Mogford

    Portfolio manager, UK equity income

  • Nick Pope
    Nick Pope

    Junior portfolio manager

Strategy profile

Objective

To generate distributions over an annual period together with long-term capital growth from investing predominantly in global securities.

Comparative index:

FTSE World Index

Typical number of equity holdings:

40 to 70

Yield discipline:

Every new holding in a global equity income portfolio typically has a prospective yield 25% greater than the index at the point of purchase. Any holding whose prospective yield falls below the comparative index yield will trigger our sale discipline process.*

*In order to prevent the portfolio from being a forced seller of securities that have suspended their dividend purely owing to the Covid-19 situation, a new sell discipline basket has been created specifically for such securities, which temporarily overrides the portfolio’s yield-based sell discipline. Securities falling into this basket may continue to be held providing there is a reasonable expectation that any dividends will be reinstated at a level consistent with the strategy’s yield criteria. The rationale for each affected security will be reviewed at least every six months.

Strategy size:

A$14.1bn (as at 30 June 2020)

Strategy inception:

1 January 2006
AUS Global Equity Income brochure

Brochure

More detail on the strategy's investment approach.

Download Brochure

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

 

  • There is no guarantee that the strategy will achieve its objective.
  • This strategy invests in global markets which means it is exposed to changes in currency rates which could affect the value of the strategy.
  • The strategy may use derivatives to generate returns as well as to reduce costs and/or the overall risk of the strategy. Using derivatives can involve a higher level of risk. A small movement in the price of an underlying investment may result in a disproportionately large movement in the price of the derivative investment.
  • The strategy may invest in emerging markets. These markets have additional risks due to less developed market practices.
  • 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.
  • The strategy may invest in small companies which may be riskier and less liquid (i.e. harder to sell) than large companies. This means that their share prices may have greater fluctuations.