Strategy highlights

  • Newton’s longest-running strategy, managed since our formation in 1978
  • Invests in attractively valued stocks, with a sustained allocation to bonds and cash
  • Security selection driven by bottom-up proprietary research which incorporates consideration of environmental, social and governance (ESG) risks, issues and opportunities

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.

Investment team

Our UK Institutional Balanced 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, 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 the custom blended benchmark by 1-2% per annum over rolling 5-year periods by investing in a global portfolio of equities, fixed-income and alternative securities.

Performance benchmark*

37.5% FTSE All-Share index, 37.5% FTSE World (ex-UK), index 20% FTSE Actuaries UK Conventional Gilts All Stocks index All Stocks index and 5% SONIA (7-day compounded)*

Typical number of equity holdings

60 to 110

Strategy size

£483m (as at 30 June 2022)

Strategy inception

22 September 1998 (BNY Mellon Global Balanced Fund).
Newton has managed UK Institutional Balanced strategies since its formation in 1978.

Strategy available through pooled UK vehicle

BNY Mellon Multi-Asset Global Balanced Fund

View fund performance
View Key Investor Information Document
View prospectus

UK Inst Multi-Asset Global Balanced strategy factsheet

Strategy factsheet

Performance and commentary for the last quarter.


RI report Multi-Asset global balanced

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: 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.
  • 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.
  • Changes in interest rates & inflation risk: Investments in bonds/money market securities are affected by interest rates and inflation trends which may negatively affect the value of the strategy.
  • Credit ratings and unrated securities risk: Bonds with a low credit rating or unrated bonds have a greater risk of default. These investments may negatively affect the value of the strategy.
  • Credit risk: The issuer of a security held by the strategy may not pay income or repay capital to the strategy when due.
  • Emerging markets risk: Emerging Markets have additional risks due to less-developed market practices.
  • Shanghai-Hong Kong Stock Connect and/or the Shenzhen-Hong Kong Stock Connect (‘Stock Connect’) risk: The strategy may invest in China A shares through Stock Connect programmes. These may be subject to regulatory changes and quota limitations. An operational constraint such as a suspension in trading could negatively affect the strategy’s ability to achieve its investment objective.
  • CoCos risk: Contingent convertible securities (CoCos) convert from debt to equity when the issuer’s capital drops below a pre-defined level. This may result in the security converting into equities at a discounted share price, the value of the security being written down, temporarily or permanently, and/or coupon payments ceasing or being deferred.
  • 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.