Investment approaches
Sustainable Global Emerging Markets
An actively managed strategy investing in emerging-market companies that demonstrate attractive investment attributes and that are seeking to manage social and environmental factors well to generate sustainable returns
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Fundamental bottom-up research
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Global thematic approach to investing targets areas with strong growth potential, not ‘old’ profit pools -
Focus on ‘compounders’ – exceptional, leading businesses with long-term growth potential
This strategy is offered by Newton Investment Management Ltd (‘NIM’). NIM is part of the Newton Investment Management Group.
Our philosophy and process
- Harnessing Newton’s global analyst resources, and adhering to our investment framework focused on fundamentals, themes, valuations and ESG considerations.
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Three overarching themes aligned with UN Sustainable Development Goals – Earth, health and wealth.
Sustainable ‘red lines’ and responsible investment team validation. - Focus on innovative companies and dynamic management teams that provide solutions and benefit from growth 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.
Earth matters
Environmental factors are high up the political agenda and provide areas of opportunity as well as risk. Governments are under pressure to respond but this can be expensive, despite advancements in technology. ‘Earth matters’ looks at these issues.
China influence
The influence of China on the world has grown exponentially but its economy looks increasingly risky. ‘China influence’ looks at how the country’s development affects the investment outlook beyond its borders.1
1 Compared to more established economies, the value of investments in emerging markets may be subject to greater volatility owing to differences in generally accepted accounting principles or from economic or political instability or less developed market practices.
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.
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.
Investment team
Our Sustainable Global Emerging Markets strategy is managed by a team of two portfolio managers, who form part of Newton’s equity opportunities team. Our dedicated responsible investment team is an integral part of the investment process and has the power of veto. Guided by our global investment themes, the team seeks to identify opportunities and risks through research and debate.
- 18
- years’ average investment experience
- 11
- years’ average time at Newton
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Paul Birchenough
Portfolio manager, Global Opportunities team
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Ian Smith
Portfolio manager, Global Opportunities team
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Paul Markham
Head of Global Opportunities
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Simon Nichols
Portfolio manager, global opportunities team
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Aditya Shah
Portfolio analyst, Global Opportunities team
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Duncan Bulgin
Portfolio manager, Global Opportunities team
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Jonathan Dennis
Portfolio analyst, Global Opportunities team
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Karen Miki Behr
Portfolio manager, Global Opportunities team
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.