Canada Global Dynamic Bond Income

This strategy is offered by Newton Investment Management Ltd (‘NIM’). NIM is part of the Newton Investment Management Group.

Our philosophy and process

  • The strategy aims to deliver income sustainably by investing opportunistically in a broad universe of bonds – principally government bonds, emerging-market sovereigns, high-yield bonds and investment-grade corporate debt. The strategy will seek to take advantage of the changing economic cycle by altering the weightings of these broad fixed-income asset classes while always maintaining some exposure to higher-yielding assets in pursuit of its income objective.
  • A constantly evolving and forward-looking approach seeks to anticipate change, manage risk, and identify opportunities. Material ESG risks, opportunities and issues are considered as part of the investment research process.

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

Authorities have engaged in ever-greater policy intervention and regulation to shore up economic growth. We believe ‘state intervention’ has increased misallocation of capital, caused volatility in markets and inflated asset prices – and we think that calls for a stock-specific approach.

Financialization

Cheap money has caused rapid growth in a sector already supported by deregulation. ‘Financialization’ investigates the implications of finance dominating economic activity, instead of serving it.

Investment team

Our Global Dynamic Bond Income strategy is managed by a focused, experienced fixed-income team. 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.

21
years’ average investment experience
14
years’ average time at Newton
  • Paul Brain
    Paul Brain

    Investment leader, fixed income

  • Howard Cunningham
    Howard Cunningham

    Portfolio manager, fixed income

  • Parmeshwar Chadha
    Parmeshwar Chadha

    Portfolio manager, fixed income

  • Jon Day
    Jon Day

    Portfolio manager, fixed income

  • Carl Shepherd
    Carl Shepherd

    Portfolio manager, fixed income

  • Trevor Holder
    Trevor Holder

    Portfolio manager, fixed income

  • Scott Freedman
    Scott Freedman

    Analyst and portfolio manager, fixed income

  • Martin Chambers
    Martin Chambers

    Credit analyst, fixed income

  • Ashwin Palta
    Ashwin Palta

    Credit research analyst, fixed income

  • Jeevan Dhoot
    Jeevan Dhoot

    Credit analyst, fixed income

Strategy profile

Objective

The strategy seeks to provide a minimum average annual total return of SOFR (30-day compounded) plus 3%, before fees and expenses, over a five-year period, from a globally diversified portfolio comprised of multiple fixed-income asset classes. However, a positive return is not guaranteed and a capital loss may occur.

Strategy inception:

Composite inception: 1 April 2018

Made in Vietnam?
Blog

Vietnam: Supply-Chain Superstar

Key (and sometimes surprising) findings from a recent trip to Vietnam.
October 4, 2022
Blog

UK Mini Budget: The Closest Thing to Crazy?

We analyze potential consequences of new UK fiscal and monetary policy for UK bonds and the wider economy.
September 28, 2022
The power of divergence
Blog

The Power of Divergence

We analyze how diverging economies can create opportunities for bond investors with a global mindset.
September 1, 2022

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.

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.
  • Derivatives Risk: Derivatives are highly sensitive to changes in the value of the asset from which their value is derived. A small movement in the value of the underlying asset can cause a large movement in the value of the derivative. This can increase the sizes of losses and gains, causing the value of your investment to fluctuate. When using derivatives, the strategy can lose significantly more than the amount it has invested in derivatives.
  • Changes in Interest Rates & Inflation Risk: Investments in bonds/money market securities are affected by interest rates and inflation trends which may negatively affect the value of the strategy.
  • Credit Ratings and Unrated Securities Risk: Bonds with a low credit rating or unrated bonds have a greater risk of default. These investments may negatively affect the value of the strategy.
  • Credit Risk: The issuer of a security held by the strategy may not pay income or repay capital to the strategy when due.
  • Emerging Markets Risk: Emerging Markets have additional risks due to less-developed market practices.
  • CoCos Risk: Contingent convertible securities (CoCos) convert from debt to equity when the issuer’s capital drops below a pre-defined level. This may result in the security converting into equities at a discounted share price, the value of the security being written down, temporarily or permanently, and/or coupon payments ceasing or being deferred.
  • 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.