Strategy highlights

  • Stock selection driven by bottom-up proprietary research which incorporates consideration of environmental, social and governance (ESG) risks, issues and opportunities
  • Flexibility to deviate from the performance benchmark and to invest directly in a range of UK and international opportunities
  • Benefits from a broad perspective owing to our global, thematic outlook

Our philosophy and process

  • The strategy is conviction-based with no sector constraints and few regional constraints; it has a higher exposure to UK securities than our Global Equity strategy. A constantly evolving and forward-looking approach seeks to anticipate change, manage risk, and identify opportunities.
  • 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 Global Equity (50/50) strategy is managed by a team with a wide range of backgrounds and varied experience. 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.

30
years’ average investment experience
19
years’ average time at Newton

Strategy profile

Objective

The strategy seeks to outperform a 50% UK equity and 50% international equity index by 1-2% per annum over rolling 5-year periods by achieving long-term capital growth from a portfolio of global securities.

Performance benchmark

50% UK equities (FTSE All-Share) and 50% international equities (1/3 FTSE AW North America, 1/3 FTSE AW Europe ex UK, 1/3 FTSE AW Asia Pacific)

Typical number of equity holdings

60 to 110

Strategy inception

Composite inception: 1 January 1996

Strategy available through pooled UK vehicle

BNY Mellon 50/50 Global Equity Fund

View fund performance
View Key Investor Information Document
View prospectus
UK Inst 50/50 global equity strategy factsheet

Strategy factsheet

Performance and commentary for the last quarter.


RI report Global Equity (50/50)

Responsible investment report

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

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.

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.
  • 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.