Sustainable Global Emerging Markets

Strategy Highlights

: Three overarching themes aligned with UN Sustainable Development Goals – Earth, Health and Wealth

Long-term thematic research targets areas with strong growth potential, not ‘old’ profit pools

Focus on ‘compounders’ – exceptional, leading businesses with long-term growth potential

Fundamental bottom-up research

Investing in companies that positively manage the material impacts of their operations and products on the environment and society

Actively omitting companies involved in areas of high social cost, environmental degradation or violation of the UN Global Compact Principles
: This strategy is offered by Newton Investment Management Ltd (‘NIM’). NIM is part of the Newton Investment Management Group.

Learn more about our multidimensional investment philosophy

Strategy Profile

Objective: To achieve long-term capital growth by investing in emerging-market securities that demonstrate attractive investment attributes and are deemed by Newton to be sustainable.
Performance benchmark: MSCI Emerging Markets Index (NDR)
Typical number of equity holdings: Typically 45-65 holdings
Red lines: Our ‘red lines’ are built on a combination of exclusions that effectively avoid investments in security issuers involved in or that generate a material proportion of revenues from areas of activity that we deem to be harmful from a social and/or environmental perspective
Strategy inception: December 2021

Investment Team

: Our Sustainable Global Emerging Markets strategy is managed by an experienced team. In-house research analysts are at the core of our investment process, and our multidimensional research platform spans fundamental, thematic, responsible investment, quantitative, geopolitical, investigative and private-market research to promote better-informed investment decisions.

Want to find out more?

Liliana Castillo Dearth

Head of emerging markets and Asia equities

Julianne McHugh

Head of sustainable equities

Alex Khosla

Portfolio manager, Emerging Markets and Asia Equities team

Zoe Kan

Portfolio manager, emerging markets and Asia equities team

Nick Pope

Portfolio manager, Sustainable Equity strategies

Fei Chen

Investment analyst

Aditya Shah

Portfolio analyst, Emerging Markets and Asia Equities team

Insights

Blog

India: Formalization and Digitalization Are Creating Opportunities

Findings from a research trip to India

May 17, 2024 Liliana Castillo Dearth

Video

Concentrated Global Emerging Markets Outlook Q2 2024

Liliana Castillo Dearth explains why interest-rate cuts and moderating inflation can provide a positive backdrop for emerging markets.

April 12, 2024 Liliana Castillo Dearth

Blog

China Trip: Three Takeaways

Three findings from a recent research trip to China.

February 26, 2024 Liliana Castillo Dearth

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.

Newton will make investment decisions that are not based solely on ESG criteria. Other attributes of an investment may outweigh ESG analysis when making investment decisions. The way that ESG and sustainability criteria are assessed and the evaluation of their suitability for Newton’s sustainable strategies may vary depending on the asset class and strategy involved. For Newton’s sustainable strategies, ESG analysis is performed prior to investment for corporate investments (single name equity and fixed-income securities). The analysis will then also follow the Newton sustainable investment process to ensure it fits with the wider Newton sustainable investment philosophy.

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.

Geographic Concentration Risk: The strategy primarily invests in a single market which may have a significant impact on 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.

Emerging Markets Risk: Emerging Markets have additional risks due to less-developed market practices.

Concentration Risk: 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.

Shanghai-Hong Kong Stock Connect and/or the Shenzhen-Hong Kong Stock Connect (‘Stock Connect’) Risk: The strategy may invest in China A shares through Stock Connect programs. These may be subject to regulatory changes and quota limitations. An operational constraint such as a suspension in trading could negatively affect the strategy’s ability to achieve its investment objective.

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.

Sustainable Strategies Risk: The strategy follows a sustainable investment approach, which may cause it to perform differently than strategies that have a similar objective but which do not integrate sustainable investment criteria when selecting securities.