Our philosophy and process
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The strategy is conviction-based with no sector constraints, and invests primarily in emerging markets.
A constantly evolving and forward-looking approach seeks to anticipate change, manage risk, and identify opportunities. - The strategy seeks high-quality companies offering attractive and sustainable dividend yields, underpinned by strong cash generation. It employs a valuation screen to help portfolios in their aim to achieve a dividend yield above that of the index.
Material and relevant ESG risks, issues and opportunities are considered as part of the investment 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
Investment team
Our Emerging Equity Income strategy is managed by an experienced 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, the team works together to identify opportunities and risks through research and debate.
- 23
- years’ average investment experience
- 19
- years’ average time at Newton
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Zoe Kan
Portfolio manager, emerging and Asian equity income
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Alex Khosla
Portfolio manager, global opportunities team
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Robert Hay
Portfolio manager, global equity income
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Paul Flood
Head of mixed assets investment
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Jon Bell
Portfolio manager, equity income team
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John C Bailer
Deputy head of equity income, portfolio manager
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Brian Ferguson
Portfolio manager, equity income team
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Peter D Goslin
Portfolio manager, equity income team
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Keith Howell Jr.
Portfolio manager, equity income team
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Adam Logan
Portfolio manager, equity income team
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James A Lydotes
Deputy chief investment officer, equity
Strategy profile
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Objective
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To achieve income together with long-term capital growth from investing in emerging-market securities
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Performance benchmark
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MSCI Emerging Markets Index (NDR)
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Typical number of equity holdings
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40 to 60
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Yield discipline
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Every new holding must have a prospective yield of at least 85% of the yield achieved by the comparative index. Any holding whose prospective yield falls below a 40% discount to the yield achieved by the index will be sold. On account of liquidity, it may not be possible to dispose of an entire holding immediately.
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Strategy inception:
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October 2012
Key Investor Information Document
Prospectus
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 considerations. Other attributes of an investment may outweigh ESG considerations when making investment decisions. The way that ESG considerations are assessed may vary depending on the asset class and strategy involved. The research team performs ESG quality reviews on equity securities prior to their addition to Newton’s research recommended list (RRL). ESG quality reviews are not performed for all fixed income securities. The portfolio managers may purchase equity securities that are not included on the RRL and which do not have ESG quality reviews. Not all securities held by Newton’s strategies have an ESG quality review completed prior to investment, although since 2020 it has been a requirement for all (single name) equity securities to have an ESG quality review before they are purchased for the first time.
