UK Institutional Sustainable Global Equity Income

Strategy highlights

  • Pursuing an asymmetric return profile (low downside market capture), with active stock selection informed by our consideration of themes, fundamentals and valuation
  • Disciplined approach seeks to ensure that every stock and the overall portfolio compounds at a higher yield than that of the market, and that dividends are underpinned by sustainable cash-flow streams
  • Investing in companies that positively manage the material impacts of their operations and products on the environment and society
  • Actively omitting companies involved in areas of high social cost, environmental degradation or violation of the UN Global Compact Principles
Find out more about our investment philosophy

Strategy profile

Objective

The strategy seeks to outperform the FTSE W World Index by more than 2% per annum over rolling 5-year periods, by achieving income and capital growth from a global portfolio comprised of companies that typically yield at least 25% greater than the FTSE W World Index yield, and which demonstrate attractive investment attributes and sustainable business practices.

Performance benchmark

FTSE W World Index

Typical number of equity holdings

70 or fewer

Red lines

Our ‘red lines’ are built on a combination of exclusions that effectively avoid investments in security issuers involved in or that generate a material proportion of revenues from areas of activity that we deem to be harmful from a social and/or environmental perspective. Read more about our red lines.

Strategy inception

18 July 2019

Strategy available through pooled UK vehicle

BNY Mellon Sustainable Global Equity Income Fund
View fund performance
View Key Investor Information Document
View prospectus

UK Inst Sustainable Global Equity Income strategy factsheet

Strategy factsheet

Performance and commentary for the last quarter.

Download Factsheet
RI report Sustainable global equity income

Responsible investment report

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

Download Report

Investment team

Our Sustainable Global Equity Income strategy is managed by an experienced team. In-house research analysts are at the core of our investment process, and our multidimensional research platform spans fundamental, thematic, ESG, quantitative, geopolitical, investigative and private-market research to promote better-informed investment decisions.

Want to find out more?

Contact us

Jon Bell
Jon Bell

Portfolio manager, Equity Income team

Robert Hay
Robert Hay

Portfolio manager, Equity Income team

James A Lydotes
James A Lydotes

Head of equity income and deputy chief investment officer, equity

Insights

Blog

Shareholder resolutions: Defining Newton’s approach

We explain why our approach to shareholder resolutions is to judge each one on its individual merits.
02 April 2024 Therese Niklasson, Diya Choudhury
Video

Sustainable Real Return – quarterly outlook

Phil Shucksmith discusses why now could be an interesting time to look for the sustainable winners.
14 February 2024 Philip Shucksmith
Chopsticks, Food, Food Presentation
Audio

Bug appétit?

Discover how one company is swarming the food industry with a six-legged new ingredient.
30 January 2024 Raphael J. Lewis, Jack Encarnacao

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 criteria. Other attributes of an investment may outweigh ESG analysis when making investment decisions. The way that ESG and sustainability criteria are assessed and the evaluation of their suitability for Newton’s sustainable strategies may vary depending on the asset class and strategy involved. For Newton’s sustainable strategies, ESG analysis is performed prior to investment for corporate investments (single name equity and fixed-income securities). The analysis will then also follow the Newton sustainable investment process to ensure it fits with the wider Newton sustainable investment philosophy.

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.
  • Sustainable strategies risk: The strategy follows a sustainable investment approach, which may cause it to perform differently from strategies that have a similar objective but which do not integrate sustainable investment criteria when selecting securities.
  • Investment in infrastructure companies risk: The value of investments in Infrastructure Companies may be negatively impacted by changes in the regulatory, economic or political environment in which they operate.
  • 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.
  • High yield companies risk: Companies with high-dividend rates are at a greater risk of not being able to meet these payments and are more sensitive to interest rate risk.