Global Emerging Markets (Responsible)

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

Strategy highlights

: Three overarching themes aligned with UN Sustainable Development Goals – Environment, Essentials and Empowerment

Long-term thematic research targets areas with durable growth potential

Focus on ‘compounders’ – well-governed companies providing high-quality products/services

Fundamental bottom-up research

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

Learn more about our multidimensional investment philosophy

Strategy profile

Objective: The strategy aims to achieve capital growth over the long term (5 years or more).
Performance benchmark: MSCI Emerging Markets Index (NDR)*
Typical number of equity holdings: Typically 45-65 holdings
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. Read more about our sustainable investment restrictions.
Strategy inception: December 2021
: * The MSCI Emerging Markets Index (NDR) index 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.

Want to find out more?

Liliana Castillo Dearth

Head of emerging markets and Asia equities

Julianne McHugh

Head of sustainable equities

Alex Khosla

Portfolio manager, Emerging Markets and Asia Equities team

Zoe Kan

Portfolio manager, emerging markets and Asia equities team

Nick Pope

Portfolio manager, Sustainable Equity strategies

Fei Chen

Investment analyst

Aditya Shah

Portfolio analyst, Emerging Markets and Asia Equities 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 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.

Geographic concentration risk: The strategy primarily invests in a single market which may have a significant impact on 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.

Shanghai-Hong Kong Stock Connect and/or the Shenzhen-Hong Kong Stock Connect (‘Stock Connect’) risk: The strategy may invest in China A shares through Stock Connect programmes. These may be subject to regulatory changes and quota limitations. An operational constraint such as a suspension in trading could negatively affect the strategy’s ability to achieve its investment objective.

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.

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.