Our credentials
Responsible investment has been a foundation of Newton’s approach for over two decades, and throughout that period we have played a highly active role as the industry landscape has evolved.
UN Principles for Responsible Investment
Newton Investment Management Limited has been a signatory of the UN Principles for Responsible Investment (PRI) since 2007.
UK Stewardship Code
The UK Financial Reporting Council has confirmed that Newton Investment Management Limited has met the standards of reporting required under the UK Stewardship Code, which sets high stewardship standards for asset owners and asset managers.
Corporate responsibility
The way our business is governed is designed to ensure that we achieve our commercial objectives in a responsible manner. Our parent company BNY, which plays an important role in the global financial system, focuses on resilience, and operates to enable a more inclusive, environmentally sustainable, and trusted financial system.
Sustainability and stewardship 2023 annual report
We set out our approach to stewardship and how we strive to meet the UK Stewardship Code’s principles.
Our responsible investment approach
We assess ESG considerations as part of a mosaic of issues, through our multidimensional research process, in order to fully understand the material risks and opportunities influencing the long-term value of the securities and instruments in which we invest on behalf of our clients. This is intended to contribute to our ability to maximise risk-adjusted returns, rather than be an outcome in itself.
Ultimately, we believe that companies that are well governed and can mitigate and manage the environmental, social and governance factors that affect their enduring value are likely to be better managed businesses in the long run.
This does not mean that we avoid companies with ‘ESG issues’, but that we seek to understand how the market will value companies’ different approaches to these considerations over time.
Integrated ESG analysis*
Our investment team is responsible for understanding and evaluating material ESG-related risks and opportunities (where appropriate and as applicable) in the context of their role to create durable value for clients.
In-house expertise
The responsible investment team is part of our multidimensional research capabilities, partnering with the investment team to develop relevant frameworks and approaches, and to generate investment insights.
Active stewards
As active stewards, we engage and vote, where applicable, on matters which we consider material for the issuer, and as we seek outcomes that are in the best long-term economic interests of our clients. We also work with the wider financial services industry around a variety of advocacy areas.
* Newton manages a variety of investment strategies. How ESG analysis is integrated into Newton’s strategies depends on the asset classes and/or the particular strategy involved. ESG can be one of many inputs into the fundamental analysis. Newton will make investment decisions that are not based solely on ESG analysis. Other attributes of an investment may outweigh ESG analysis when making investment decisions.
What we offer
We take a range of investment approaches, moving from the integration of ESG considerations, where ESG issues are considered purely to the extent that these may affect financial returns, to combining this with screening, which aims to align products to the values of clients, and to strategies with sustainability characteristics, which seek a balance between the current and future requirements of stakeholders.
Core strategies*
Our core strategy approach encompasses a range of perspectives, including consideration of ESG topics, to the extent that they are financially material. In our core strategies, we may invest in securities with ESG risks if we believe such risks are reflected adequately in their valuations, but we will look for opportunities to improve ESG issues affecting companies through voting and engagement.
Exclusions and screening
We offer exclusions and screening in areas including tobacco, alcohol, gambling, pornography, and fossil fuels to meet specific client needs.
Strategies with sustainability characteristics
Our suite of strategies aim to encourage a better allocation of capital that leads to the generation of attractive investment outcomes for clients alongside guiding positive change for society and the environment.
* Newton manages a variety of investment strategies. How ESG analysis is integrated into Newton’s strategies depends on the asset classes and/or the particular strategy involved. ESG can be one of many inputs into the fundamental analysis. Newton will make investment decisions that are not based solely on ESG analysis. Other attributes of an investment may outweigh ESG analysis when making investment decisions.
Strategies with sustainability characteristics
Our range of strategies with sustainability characteristics builds on our long heritage of active stewardship and responsible investment research.
These responsible investment strategies are managed by Newton Investment Management Ltd (‘NIM’). NIM is part of the Newton Investment Management Group.
Principles for Responsible Investment (PRI) reports:
2024 PRI Assessment Report – Newton Investment Management
2024 PRI Public Transparency Report – Newton Investment Management
The ratings were given by UN PRI to Newton Investment Management Limited, Newton Investment Management North America LLC and Newton Investment Management Japan Limited on 25 November 2024 and were based upon responsible investment activities during the period 1 January-31 December 2023. We have provided compensation to UN PRI to obtain and/or use these ratings in our marketing materials.
Insights
Expert comment and analysis from our investment team and industry specialists on topics related to responsible and sustainable investment.
Contact us
We are here to help with any questions you may have about our investment solutions.
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 manages a variety of investment strategies. How ESG analysis is integrated into Newton’s strategies depends on the asset classes and/or the particular strategy involved. ESG can be one of many inputs into the fundamental analysis. Newton will make investment decisions that are not based solely on ESG analysis. Other attributes of an investment may outweigh ESG analysis when making investment decisions.
These opinions should not be construed as investment or other advice and are subject to change. This material is for information purposes only.