Global First Decade Innovators

This strategy is offered by Newton Investment Management Ltd (‘NIM’). This strategy may be managed by an affiliate of NIM and may apply a research process that differs from that applied by NIM.

Strategy overview

We seek companies that are driving the future through innovation and disruption, have underappreciated growth potential, offer ground-breaking and transformative products or services, and feature outstanding management teams.

Employing a flexible approach, we have the ability to pursue opportunities across a broad range of sectors and geographies. We believe this is critical to delivering long-term value for our clients. We focus on small- and mid-cap companies with an upper market cap limit of approximately $35 billion. The landscape of opportunity across small-cap companies is influenced by a wide variety of factors, including economic cycles, demographic shifts, regulation, and corporate competition and synergies. We recognise that small cap innovators and disruptors can shift over time, be it geographically or across industries, and we maintain the ability to allocate capital to the most attractive ideas regardless of domicile or industry. We believe our edge lies in the following key areas:

: Experience: We have a global research platform of experienced analysts, with several individuals dedicated to small-cap and mid-cap investing. We believe the team’s breadth, depth and experience leads to higher alpha capture.

Thematic research: Our thematic research framework allows us to proactively identify economic and demographic tailwinds that are driving rapid growth for industries and companies across the economic landscape. This perspective helps illuminate both opportunities and threats that may otherwise be overlooked.

Growth duration: We focus on stock selection that relies on the accurate identification of a company’s long-term sustainable growth, which is critical to long-term price appreciation.

Risk evaluation: Rigorous risk assessment underscores consistent results. We conduct stock laggard reviews, factor analysis and risk reporting to ensure proper diversification and discipline throughout our risk process.

Strategy profile

Objective: The strategy aims to identify future industry leaders with significant upside growth potential. The strategy maintains broad flexibility to pursue opportunities across sectors and geographies, which we view as an advantage to driving potential long-term success.
Benchmark: MSCI ACWI SMID
Strategy inception: 1 April 2019

Investment team

: Our investment team of research analysts and portfolio managers work together across regions and sectors, helping to ensure that our investment process is highly flexible.

Want to find out more?

John R Porter III

Chief investment officer, head of equity

Julianne McHugh

Head of sustainable equities

Past performance is not a guide to future performance. 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.

Analysis of themes may vary depending on the type of security, investment rationale and investment strategy. Newton will make investment decisions that are not based on themes and may conclude that other attributes of an investment outweigh the thematic structure the security has been assigned to.

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.

Emerging markets risk: Emerging markets have additional risks due to less developed market practices.

Market capitalisation risk: Investing in small companies may be riskier and less liquid (i.e. harder to sell) than large companies. This means that their share prices may have greater fluctuations.

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.