The Global Equity Income (Responsible) strategy was formerly referred to as the Sustainable Global Equity Income strategy. The strategy has been renamed in order to comply with naming and marketing rules under the UK Sustainability Disclosure Requirements.

Strategy highlights

  • Seeks total return through compounded dividends, with a yield-based buy and sell discipline
  • A high-conviction active approach based on selecting quality companies which have durable dividend streams, underpinned by multidimensional research
  • Seeks to provide an asymmetric return profile, with lower volatility and beta, offering the opportunity for reduced drawdown
  • Investing in companies that demonstrate positive sustainability characteristics by either contributing to or aligning with Newton’s proprietary sustainable investment themes
  • Actively omitting companies involved in areas deemed to be harmful from an environmental or social perspective, as well as those that violate the UN Global Compact Principles
  • At least 70% of portfolio invested in securities that demonstrate sustainability characteristics

Strategy profile

Objective

The strategy aims to achieve income together with the potential for capital growth over the long term (5 years or more).

Performance benchmark

FTSE World Index*

Typical number of equity holdings

70 or fewer

Sustainable investment restrictions

Strategies that follow the Newton sustainable investment framework are subject to a set of minimum exclusions referred to as ‘sustainable investment restrictions’. These restrictions include companies involved in or that generate a material proportion of revenues from activities that are deemed to be harmful from an environmental or social perspective.

Strategy inception

18 July 2019

* The FTSE World 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.

Investment team

The strategy is managed by an experienced team with a wide range of backgrounds and has dedicated support from Newton’s responsible investment team. In-house research analysts are at the core of our investment process, and our multidimensional research capabilities help to promote better-informed investment decisions.

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

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 strategy does not seek a specific sustainability outcome as part of its investment objective, but in pursuing its investment objective a minimum of 70% of holdings will be invested in securities assessed to have sustainability characteristics, in accordance with the Newton sustainable investment framework. This strategy does not have a UK sustainable investment label.

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.
  • Responsible investing risk: The investment policy for this strategy places restrictions on its exposure to certain sectors or types of investments to reflect its responsible investing approach. The strategy’s performance may be negatively impacted due to these restrictions in comparison to strategies which do not have these restrictions. The strategy will not engage in securities lending activities and, therefore, may forego any additional returns that may be produced through such activities.
  • 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.