Our philosophy and process
- The Real Return strategy has a simple structure, with a stable core of predominantly traditional return-seeking assets, and a layer of risk-offsetting positions which aim to dampen volatility and preserve capital. Material ESG (environmental, social and governance) risks, opportunities and issues are considered as part of the investment research process.
- The strategy is conviction-based, with no regional, sector or performance reference constraints. A constantly evolving and forward-looking approach seeks to anticipate change, manage risk, and identify opportunities.
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.
Investment team
Our Real Return strategy is managed by an experienced team with a wide range of backgrounds. Our investment team of research analysts and portfolio managers works together across regions and sectors, helping to ensure that our investment process is highly flexible. Guided by our global investment themes, we seek to identify opportunities and risks through research and debate.
- 20
- years’ average investment experience
- 14
- years’ average time at Newton
Strategy profile
-
Objective
- The strategy aims to deliver a total return of SONIA (30-day compounded) +4% per annum over 5 years before fees. In doing so, the strategy aims to achieve a positive return on a rolling 3-year basis. However, a positive return is not guaranteed and a capital loss may occur.
-
Performance benchmark
-
SONIA (30-day compounded) +4%*
-
Volatility
-
Expected to be between that of bonds and equities over the long term
-
Strategy size
-
£12.4bn (as at 30 June 2022), including GBP, EUR, USD and AUD strategies
-
Strategy inception
- Composite inception: 1 April 2004
-
Typical assets
-
Selective exposure to
- Equities
- Corporate bonds
- Government bonds
- Cash derivatives
-
Other assets via tradeable securities
- Real estate
- Commodities
- Currencies
- Infrastructure
- Renewable energy
- Other ‘alternative’ strategies
-
-
Strategy available through pooled UK vehicle
-
BNY Mellon Real Return Fund
View fund performance
View Key Investor Information Document
View prospectus -
- * Please note that on 1 October 2021, the performance benchmark for this strategy changed from 1-month GBP LIBOR +4% to SONIA (30-day compounded) +4%.
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.
ESG analysis may vary depending on the type of security, investment rationale and investment strategy. Newton does not currently view certain types of investments as presenting ESG risks, opportunities and/or issues, and believes it is not practicable to evaluate such risks, opportunities and/or issues for certain other investments. In addition, Newton will make investment decisions that are not based solely on ESG considerations. In some cases, therefore, Newton may conclude that other attributes of an investment outweigh ESG considerations when making investment decisions.