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 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 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.
Smart revolution
Machines and networks are becoming more intelligent. This is disrupting the labour market, as machines increasingly replace humans in the workplace. ‘Smart revolution’ considers the implications commercially, socially and politically.
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.
Transcript
You can imagine the portfolio like this:
At the core, the emphasis is on traditional assets to generate capital growth and drive long-term returns.
Then there is an outer layer – stabilizing assets and hedging positions to try to counteract risks and dampen volatility.
And this is how we construct it:
In the core, might be equities, infrastructure and renewables.
In the outer layer we use a diverse range of instruments, including commodities, bonds, simple derivative strategies and currencies.
We alter the proportions of the core and outer layer according to our evolving view on the investment landscape.
We think there’s a key advantage to active management. We can seek out returns in rising markets and try to minimize the downfall in falling markets.
Its composition is guided by the perspective of our global investment themes. They are our interpretation of the forces driving long-term change in the world.
Our Real Return strategy takes a simple, transparent approach to try to deliver, solid, stable returns for our clients.
Investment Team
Our Global 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
-
Suzanne Hutchins
Portfolio manager, Real Return team
-
Aron Pataki
Portfolio manager, Real Return team
-
Andy Warwick
Portfolio manager, Real Return team
-
Lars Middleton
Portfolio manager, Real Return team
-
Philip Shucksmith
Portfolio manager, Real Return team
-
Matt Brown
Portfolio manager, Real Return team
-
Brendan Mulhern
Global strategist, Real Return team
-
Catherine Doyle
Investment specialist
-
Chris King
Investment team support
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.