UK Institutional Strategies Active equity strategies Different approach, different outcome

Consistent returns

How can I achieve returns in excess of equities?

Equities tend to be at the core of investors’ risk budgets, but some active returns can be unreliable. Some investors have responded by allocating to low-cost indexing exposure.

But can investors afford to give up on active equity altogether, and can they improve their core equity allocation?

A dynamic approach

Dynamic Equity’s 33-year track record demonstrates its durability and capacity to navigate a range of market environments.


  • Flexible, time-tested approach that seeks to outperform equities in different market environments

  • Targets enhanced upside and seeks to protect capital in down markets

  • Low correlation to traditional active strategies and factors/styles

  • Seeks consistency of excess returns with a higher hit rate than traditional active strategies

Next steps

Solution

Dynamic US Equity

Rethink your core equity allocation with Newton’s Dynamic US Equity strategy.
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How can a different approach to equity investment address the new market regime?

How can a different approach to equity investment seek out opportunities in a radically different market regime?

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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.
  • 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.