US Institutional International Equity

This strategy is offered by Newton Investment Management Ltd (‘NIM’). NIM is part of the Newton Investment Management Group.

Our philosophy and process

  • The strategy is conviction-based with no sector constraints and few country constraints; the portfolio may invest in any country except the U.S. and has the scope to invest in emerging markets. 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.

State intervention

Authorities have engaged in ever-greater policy intervention and regulation to shore up economic growth. We believe ‘state intervention’ has increased misallocation of capital, caused volatility in markets and inflated asset prices – and we think that calls for a stock-specific approach.

Financialization

Cheap money has caused rapid growth in a sector already supported by deregulation. ‘Financialization’ investigates the implications of finance dominating economic activity, instead of serving it.

Net effects

The world has made the transition from connecting places to connecting people to connecting devices. The rapid rise in the ‘internet of things’ is transforming lifestyles and business. This creates winners and losers – our ‘net effects’ theme seeks to identify them.

Healthy demand

The industry for health-care products and services is growing rapidly. Ageing populations are fuelling demand in developed economies, and increasing incomes and changing lifestyles are creating new markets in emerging economies. ‘Healthy demand’ looks at the opportunities and the risks.

Investment team

Our International Equity 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.

18
years’ average investment experience
11
years’ average time at Newton
  • 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

  • Simon Nichols
    Simon Nichols

    Portfolio manager, global opportunities team

  • Aditya Shah
    Aditya Shah

    Portfolio analyst, Global Opportunities team

  • Karen Miki Behr
    Karen Miki Behr

    Portfolio manager, Global Opportunities team

  • Duncan Bulgin
    Duncan Bulgin

    Portfolio manager, Global Opportunities team

  • Jonathan Dennis
    Jonathan Dennis

    Portfolio analyst, Global Opportunities team

Strategy profile

Objective

The strategy seeks to outperform the MSCI EAFE Index (NDR) by 2% per annum (before fees) over a full market cycle by achieving long-term capital growth from a portfolio of global securities (ex-U.S.).

Performance benchmark

MSCI EAFE (NDR)

Typical number of equity holdings

55 to 80

Strategy size

US$1.1bn (as at June 30, 2022)

Strategy inception

Composite inception: November 1, 1997

NIMNA International Equity strategy factsheet

Quarterly factsheet

Facts on the strategy’s performance and positioning.

Download Factsheet
US RI report International Equity

Responsible investment report

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

Download report
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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.
  • 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.
  • Investment in Smaller Companies Risk: This strategy may invest in the smaller companies. The securities of smaller companies may possess greater potential for growth, but can also involve greater risks, such as limited product lines and markets, and financial or managerial resources. Trading in these securities may be subject to more abrupt price movements and greater fluctuations in available liquidity than trading in the securities of larger companies.