Our philosophy and process
- The Real Return strategy has a simple structure, with a stable core of predominantly traditional return-seeking assets, and a layer of risk-offsetting positions which aim to dampen volatility and preserve capital. Material ESG (environmental, social and governance) risks, opportunities and issues are considered as part of the investment research process.
- The strategy is conviction-based, with no regional, sector or performance reference constraints. A constantly evolving and forward-looking approach seeks to anticipate change, manage risk, and identify 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 Real Return strategy is managed by an experienced team with a wide range of backgrounds. 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.
- 20
- years’ average investment experience
- 14
- years’ average time at Newton
-
Suzanne Hutchins
Portfolio manager, Real Return team
-
Aron Pataki
Portfolio manager, Real Return team
-
Andy Warwick
Portfolio manager, Real Return team
-
Lars Middleton
Portfolio manager, Real Return team
-
Philip Shucksmith
Portfolio manager, Real Return team
-
Matt Brown
Portfolio manager, Real Return team
-
Brendan Mulhern
Global strategist, Real Return team
-
Catherine Doyle
Investment specialist
-
Chris King
Investment team support
Strategy profile
-
Objective
-
The strategy aims to achieve a rate of return in sterling terms that is equal to or above a minimum return from cash (SONIA (30-day compounded)) +4% per annum over five years before fees. In doing so, it aims to achieve a positive return on a rolling three-year basis (meaning a period of three years, no matter which day you start on). However, capital is in fact at risk and there is no guarantee that this will be achieved over that, or any, time period.
-
Performance benchmark
-
SONIA (30-day compounded) +4%*
-
Volatility
- Expected to be between that of bonds and equities over the long term
-
Typical assets
-
Selective exposure to
- Equities
- Corporate bonds
- Government bonds
- Cash derivatives
-
Other assets via tradeable securities
- Real estate
- Commodities
- Currencies
- Infrastructure
- Renewable energy
- Other ‘alternative’ strategies
-
-
- View fund performance
- Key Investor Information Document (KIID)
- Prospectus
-
-
* Please note that on 1 October 2021, the performance benchmark for this strategy changed from 1-month GBP LIBOR +4% to SONIA (30-day compounded) +4%.
Read more about the transition from LIBOR to SONIA in relation to onshore UK pooled funds
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.
ESG analysis may vary depending on the type of security, investment rationale and investment strategy. Newton does not currently view certain types of investments as presenting ESG risks, opportunities and/or issues, and believes it is not practicable to evaluate such risks, opportunities and/or issues for certain other investments. In addition, Newton will make investment decisions that are not based solely on ESG considerations. In some cases, therefore, Newton may conclude that other attributes of an investment outweigh ESG considerations when making investment decisions.