Global Multi-Asset Income Investment Strategy

Strategy Highlights

: Flexible, global approach, allowing us to invest without any sector, country or asset class constraints

Focus on income sustainability, with an eye to capital growth

Stable monthly income payments
: This strategy is offered by Newton Investment Management Ltd (‘NIM’). NIM is part of the Newton Investment Management Group.

Our Philosophy and Process

: A constantly evolving and forward-looking approach seeks to anticipate change, manage risk, and identify opportunities. Material ESG risks, opportunities and issues are considered as part of the investment research process.

The strategy invests in a diversified range of assets, from equities and bonds to alternative assets. Income is set at portfolio level, allowing the manager to determine where best to achieve income and where to seek capital growth.

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 themes to help identify opportunities.

Strategy Profile

Objective: The strategy seeks to provide income with the potential for capital growth over the longer term by investing in a broad diversified multi-asset portfolio. The portfolio aims to yield 30% more than a reference yield comprising 60% MSCI AC World Index (equities) and 40% ICE BofA Global Broad Market Index (bonds).
Volatility: Expected to be between that of bonds and equities over the long term
Strategy inception: Composite inception: March 1, 2015

Investment Team

: Our Global Multi-Asset 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.

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Paul Flood

Head of Mixed Assets Investment

Alison El-Araby

Portfolio manager, Charities Investment team

Janice Kim

Associate Portfolio manager, Mixed Assets team

Hilary Meades

Head of Charities Investment

Simon Nichols

Portfolio manager, Global Opportunities team

Bhavin Shah

Portfolio manager, Mixed Assets Investment team

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.

The outperformance target stated is net of fees, for indicative purposes only, and may be changed without notice. Targeted return is generally aspirational in nature, not necessarily based on criteria and assumptions, and is not a guarantee of future returns.

Newton will make investment decisions that are not based solely on ESG considerations. It is one of many inputs into the fundamental analysis. Other attributes of an investment may outweigh ESG considerations when making investment decisions. The way that material ESG considerations are assessed may vary depending on the asset class and strategy involved. As of September 2022, the research team performs ESG analysis on equity securities prior to their addition to Newton’s Research Recommended List (RRL). ESG 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 reviews. Not all securities held by Newton’s strategies have an ESG review completed prior to investment.

Key Investment Risks

: There is no guarantee that the strategy will achieve its objective.

This strategy invests in global markets which means it is exposed to changes in currency rates which could affect the value of the strategy.

The strategy will use derivatives to generate returns as well as to reduce costs and/or the overall risk of the strategy. Using derivatives can involve a higher level of risk. A small movement in the price of an underlying investment may result in a disproportionately large movement in the price of the derivative investment.

Investments in bonds are affected by interest rates and inflation trends which may affect the value of the strategy.

The strategy holds bonds with a low credit rating that have a greater risk of default. These investments may affect the value of the strategy.

The strategy may invest in emerging markets. These markets have additional risks due to less developed market practices.

The strategy may invest in investments that are not traded regularly and are therefore subject to greater fluctuations in price.

The strategy may invest in small companies which may be riskier and less liquid (i.e. harder to sell) than large companies. This means that their share prices may have greater fluctuations.