UK Institutional Sustainable UK Opportunities

Strategy highlights

  • Fundamental bottom-up research
  • Global thematic approach to investing targets areas with strong growth potential, not ‘old’ profit pools
  • Focus on high quality ‘compounders’ – exceptional, growing businesses that can sustain superior returns into the long term

Our philosophy and process

Harnessing Newton’s global analyst resources, and adhering to our investment framework focused on fundamentals, themes, valuations and ESG considerations.

Sustainable ‘red lines’, with responsible investment team validation, seek to ensure there is no investment in security issuers that:

  • Breach the UN Global Compact
  • Are incompatible with a 2˚C world
  • Are deemed to have material ESG risks which are likely to negatively affect future performance and are associated with significant social or environmental harm

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.

Investment team

Our Sustainable UK Opportunities strategy is managed by an experienced team. Our dedicated responsible investment team is an integral part of the investment decision-making process. Guided by our global investment themes, we seek to identify opportunities and risks through research and debate.

18
years’ average investment experience
10
years’ average time at Newton
  • Louise Kernohan
    Louise Kernohan

    Portfolio manager, UK Equities team

  • Georgina Cooper
    Georgina Cooper

    Portfolio manager, UK Equities team

  • Julianne McHugh
    Julianne McHugh

    Head of Sustainable Equities

  • Nick Pope
    Nick Pope

    Portfolio manager, sustainable equity strategies

  • Simon Nichols
    Simon Nichols

    Portfolio manager, global opportunities team

  • Paul Markham
    Paul Markham

    Head of Global Opportunities

  • Paul Birchenough
    Paul Birchenough

    Portfolio manager, Global Opportunities team

  • Ian Smith
    Ian Smith

    Portfolio manager, Global Opportunities team

  • Duncan Bulgin
    Duncan Bulgin

    Portfolio manager, Global Opportunities team

  • Karen Miki Behr
    Karen Miki Behr

    Portfolio manager, Global Opportunities team

  • Tim Lucas
    Tim Lucas

    Portfolio manager, UK Equities team

  • Aditya Shah
    Aditya Shah

    Portfolio analyst, Global Opportunities team

  • Jonathan Dennis
    Jonathan Dennis

    Portfolio analyst, Global Opportunities team

Strategy profile

Objective

To achieve long-term capital growth from a concentrated portfolio invested primarily in UK securities with the capability to hold non-UK securities

Performance benchmark

FTSE All-Share

Typical number of equity holdings

30 to 50

Strategy size

£203m (as at 30 June 2022)

Strategy inception

8 December 2021

Strategy available through pooled UK vehicle

BNY Mellon Sustainable UK Opportunities Fund

View fund performance
View Key Investor Information Document
View prospectus
RI report Sustainable UK Opportunities

Responsible investment report

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

Download report

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 and the assessment of their suitability for NIM’s sustainable strategies may vary depending on the asset class and strategy involved. For Newton’s sustainable strategies, ESG Quality Reviews are performed prior to investment for corporate investments (single name equity and fixed income securities).

Key investment risks

  • Objective/performance risk: The performance aim is not a guarantee, may not be achieved and a capital loss may occur. Strategies which have a higher performance aim generally take more risk to achieve this and so have a greater potential for returns to vary significantly.
  • 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.
  • 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.
  • Sustainable strategies risk: The strategy follows a sustainable investment approach, which may cause it to perform differently than strategies that have a similar objective but which do not integrate sustainable investment criteria when selecting securities. The strategy will not engage in stock lending activities and, therefore, may forego any additional returns that may be produced through such activities.
  • 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.
The Hesitant IPO Market
Blog

The hesitant IPO market

We explore the effects of the current macroeconomic environment on the IPO market.
31 August 2022
UK equities: What’s the market missing in the mid-cap area?
Blog

UK equities: What’s the market missing in the mid-cap area?

We examine the potential opportunities emerging as the performance of UK large and mid-cap stocks diverges.
14 June 2022
The digital revolution: have investors missed the boat?
Article

The digital revolution: have investors missed the boat?

We discuss the value creation and disruption caused by digital transformation, and the related investment implications.
22 November 2021