Our philosophy and 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.

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

Real Return

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.


The developing world is full of investment opportunities, in part due to its young, growing workforce.

But every emerging market is unique and prospects can vary because of regional, industrial and corporate differences.

With such divergent opportunities and risks, what should investors do?
We believe an active, long-term approach to stock picking could help identify the best long-term growth opportunities in developing markets.

And one particular solution could be our Global Emerging Markets strategy. It has four core principles:

Active management – we are unconstrained by an index. A passive investor is limited to areas which have already performed well, but we can actively position the strategy to try to harness future growth opportunities.

Long-term focus – we do not chase the short-term volatility in the market, but focus on trying to deliver sustainable growth.

Strong fundamentals – we search for companies with attractive valuations, strong growth potential and that have the backing of our global investment themes.

And we analyse the environmental, social and governance risks of every company which we consider for investment. We look for companies which are run in the best interests of all shareholders, not the state.

Our Global Emerging Markets strategy takes an active, highly selective approach in seeking out the best long-term growth opportunities in the developing world, for our clients.

Investment team

Our Global Emerging Markets Equity strategy is managed by an experienced team. Our global sector analysts and investment managers are located on a single floor in London, which helps to ensure that the investment process is flexible and opportunistic. Guided by our global investment themes, the team works together to identify opportunities and risks through research and debate.

years' average investment experience
years' average time at Newton

Strategy profile


To achieve long-term capital growth through investing in emerging-market securities

Comparative index

MSCI Emerging Markets Index (NDR)

Performance aim

To outperform the comparative index in excess of 3% p.a. over a rolling five-year period

Typical number of equity holdings

40 to 70

Strategy size

£1.4bn (as at 30 June 2020)

Strategy inception

May 2011

Strategy available through pooled UK vehicle

BNY Mellon Global Emerging Markets Fund

View fund performance
View Key Investor Information Document
UK Inst Global emerging markets strategy factsheet

Strategy factsheet

Performance and commentary for the last quarter.

RI report Global emerging markets

Responsible investment report

Stewardship activities (voting and engagement) for the last quarter and ESG metrics.

Global Emerging Markets brochure


More detail on the strategy's investment approach.

Quarterly video update: Q2 2020

Quarterly video update

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.

Key investment risks


  • There is no guarantee that the strategy will achieve its objective.
  • This strategy invests in international markets which means it is exposed to changes in currency rates which could affect the value of the strategy.
  • A fall in global emerging markets may have a significant impact on the value of the strategy because it primarily invests in these markets.
  • The strategy may use derivatives to generate returns as well as to reduce costs and/or the overall risk of the strategy. Using derivatives can involve a higher level of risk. A small movement in the price of an underlying investment may result in a disproportionately large movement in the price of the derivative investment.
  • The strategy invests in emerging markets. These markets have additional risks due to less developed market practices.
  • 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.
  • The strategy may invest in small companies which may be riskier and less liquid (i.e. harder to sell) than large companies. This means that their share prices may have greater fluctuations.