Our Responsible Investment Approach
As one of the inputs into our multidimensional research, we believe that ESG analysis should contribute to our ability to maximize risk-adjusted returns for our clients, rather than being an outcome in itself.
Ultimately, we believe that companies that are well governed and can mitigate and manage the environmental and social 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 managers are 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
Our investment managers are supported by an experienced global responsible investment team, which drives our internal frameworks, policies, standards, and specialized insights.
Active Stewards
As active stewards, we engage and vote, where applicable, to influence practices 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 as they come up.
* ESG analysis may vary depending on the type of security, investment rationale and investment strategy. Newton does not currently view certain types of investments as presenting ESG risks, opportunities and/or issues, and believes it is not practicable to evaluate such risks, opportunities and/or issues for certain other investments. In addition, Newton will make investment decisions that are not based solely on ESG considerations. Newton may conclude that other attributes of an investment outweigh ESG considerations when making investment decisions.
What We Offer
Core Strategies*
Our core strategy approach has available a number of research inputs, including, where appropriate and as applicable, our ESG-focused research. 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 to clients in areas including tobacco, alcohol, gambling, pornography, and fossil fuels.
Sustainable Strategies
Our suite of sustainable strategies aim to generate sustainable risk-adjusted returns for clients alongside improved long-term global outcomes for the society and the environment. No single investment is without issues or areas for improvement, and we emphasize real-world change where it is needed the most over portfolio purification.
* ESG analysis may vary depending on the type of security, investment rationale and investment strategy. Newton does not currently view certain types of investments as presenting ESG risks, opportunities and/or issues, and believes it is not practicable to evaluate such risks, opportunities and/or issues for certain other investments. In addition, Newton will make investment decisions that are not based solely on ESG considerations. Newton may conclude that other attributes of an investment outweigh ESG considerations when making investment decisions.
Sustainable Investment Strategies
Our range of sustainable investment strategies 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:
2023 PRI Assessment Report – Newton Investment Management
2023 PRI Public Transparency Report – Newton Investment Management
The ratings were given by UN PRI to Newton Investment Management Limited and Newton Investment Management North America LLC on December 15, 2023 and were based upon responsible investment activities during the period January 1-December 31, 2022. 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.
ESG analysis may vary depending on the type of security, investment rationale and investment strategy. Newton does not currently view certain types of investments as presenting ESG risks, opportunities and/or issues, and believes it is not practicable to evaluate such risks, opportunities and/or issues for certain other investments. In addition, Newton will make investment decisions that are not based solely on ESG considerations. Newton may conclude that other attributes of an investment outweigh ESG considerations when making investment decisions.
Newton manages a variety of investment strategies. How ESG considerations are assessed or integrated into Newton’s strategies depends on the asset classes and/or the particular strategy involved. ESG may not be considered for each individual investment and, where ESG is considered, other attributes of an investment may outweigh ESG considerations when making investment decisions.