Dynamic Global ex-US Equity

This strategy is offered by Newton Investment Management Ltd (‘NIM’). This strategy may be managed by an affiliate of NIM.

Strategy overview

The Dynamic Global ex-US Equity strategy applies the widely recognised academic theory of the Capital Asset Pricing Model (CAPM) and the Capital Market Line (CML) to develop a portfolio of three broad exposures (MSCI ACWI ex-US, long US Treasury bonds, and cash) designed to outperform the MSCI ACWI ex-US Index with a similar level of risk.

The strategy allows for modest leverage (up to 50%) to dynamically allocate across these three broad exposures or risk premiums. By design, fundamental valuation, macro, volatility and tail-risk management are incorporated into the strategy, which is expected to provide low downside participation and high upside participation.

Investment team

: The strategy follows a systematic investment process driven by model recommendations. Portfolio managers use model outputs to construct the optimal portfolio. The research team maintains and enhances underlying models.

A team of 17 investment professionals.

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Ryan Arita

Portfolio manager, Asset Allocation team

Dimitri Curtil

Global head of multi-asset solutions

James H Stavena

Head of portfolio management, Multi-Asset Solutions

Torrey K Zaches

Portfolio manager, multi-asset solutions

Strategy profile

Objective: Dynamic Global ex-US Equity seeks to outperform the MSCI ACWI ex-US Index while maintaining a similar level of risk. The strategy’s excess returns are expected to have a very low correlation to its peer group, including traditional stock-selection and factor-based approaches.
Benchmark: MSCI ACWI-ex US Index

The MSCI ACWI-ex US Index performance benchmark is used as a comparator for this strategy. The strategy does not aim to replicate either the composition or the performance of the performance benchmark.
Strategy inception: 5 July 2018

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.

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.

Geographic concentration risk: Where the strategy invests significantly in a single market, this may have a material 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.

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 risk: The issuer of a security held by the strategy may not pay income or repay capital to the strategy when due.

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.