Client solutions

Why opt for a bespoke investment strategy?

Against a backdrop of structural economic change and market conditions that have evolved dramatically, a pooled investment approach may no longer address all your requirements. A bespoke portfolio is shaped to be fit for today and remain flexible for tomorrow, adjusting as new priorities emerge.

Different investors face their own unique challenges. Defined benefit pension schemes, for example, may be facing the need for additional liquidity, and many are closer to buyout than at any point in their history. Some seek ways to deploy their surplus optimally for their sponsor, while protecting member benefits.

Defined contribution schemes are seeking access to more diverse assets and are actively considering how to help members manage their savings in retirement most effectively. With the prospect of lower market returns, cost-effective active management has the potential to add value.

Endowments and foundations are concerned about the impact of high and persistent inflation both on their charitable works and their investment portfolios.

For all clients, we seek to deliver strong investment outcomes so that they can achieve their goals in the vibrant world we all want to see.

The steps we take to help you achieve your goals

Thoroughly understand your overall investment objectives and the impact of any regulatory drivers
Align return-seeking and risk-taking aims with your objectives
Combine the most applicable elements from our wide range of established systematic fundamental and discretionary investment capabilities to deliver against your objectives
Incorporate bespoke preferences and restrictions such as responsible investment criteria, capital intensity, and tail-risk exposure hedging

What Newton offers

We draw on our strong multi-asset heritage, together with the new perspectives and rigour of our multidimensional research platform, which combines fundamental security-specific research with other specialist insights including thematic, responsible investment, quantitative and investigative research.
We create investment solutions that are designed to deliver against clients’ objectives, and we can tailor portfolios to incorporate strategic and tactical asset allocation, thematic security selection, sustainability enhancements, and exclusions.

Our credibility

Below are just a few examples of where we have worked closely with clients to design bespoke portfolios.

Case study 1
Multi-asset risk-rated range

We worked with our parent company BNY to launch a range of risk-rated funds for advisors, which are designed for today’s volatile and uncertain market environment. These sustainably managed, directly invested multi-asset portfolios are designed to exhibit stable risk characteristics consistent with the categories widely used in the delivery of regulated investment advice. They are highly diversified and actively managed, encompassing strategic and tactical asset allocation, as well as security selection supported by our multidimensional research platform. Find out more about Newton’s multi-asset strategies.

Case study 2
Thematic portfolios

We worked with a Japanese distribution partner to successfully launch an actively managed, thematic investment strategy which seeks to invest globally in companies at the forefront of agriculture and food innovation. Find out more about Newton’s thematic strategies.

Case study 3
Inflation protection (targeting outperformance versus global equities)*

By combining the investment characteristics of our established global infrastructure, global natural resources and commodity alpha capabilities, we designed a scalable, efficient and diversified real-asset portfolio. With all components responsive to distinct inflation drivers and low cross-correlations, the strategy can also be structured with a dynamic beta hedge for superior downside protection. The resulting mix has shown around two thirds of the volatility of global equities.

Case study 4
Charity debt repayment vehicle*

For a charity with a £40m debt to repay in 15 years’ time, our proposal was a sustainable multi-asset target-date glide-path portfolio structured to allow for regular capital injections. Designed to minimise the probability of shortfall versus the target, this portfolio showed a third of the shortfall risk versus a conventional static strategic asset allocation structure, coupled with a materially higher probability of generating a £10m+ surplus versus the target.

*This is an investment proposal and has not yet been invested in by clients.

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. Newton does not currently view certain types of investments as presenting ESG risks and opportunities and believes it is not practicable to evaluate such risks and opportunities for certain other investments. Where ESG is considered, other attributes of an investment may outweigh ESG considerations when making investment decisions.

The team

If you’re keen to learn more or understand if a bespoke solution is what you need, please get in touch. Our solutions can be managed by various members of our highly experienced investment team, depending on the components required to address your requirements.