UK Institutional Global Equity (Responsible)

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

Strategy highlights

  • 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
  • Targets stocks with characteristics of financial resilience and quality
  • Stock selection driven by bottom-up proprietary research which is underpinned by our multidimensional approach
Learn more about our multidimensional investment philosophy

Strategy profile

Objective

The strategy aims to achieve capital growth and income over the long term (5 years or more).

Performance benchmark

MSCI AC World Index (NDR)*

Typical number of equity holdings

50 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. Read more about our sustainable investment restrictions.

Strategy inception

Composite inception: 1 February 2018

* The MSCI AC World Index (NDR) 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.

Want to find out more?

Contact us
Nick Pope
Nick Pope

Portfolio manager, Sustainable Equity strategies

Julianne McHugh
Julianne McHugh

Head of sustainable equities

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.
  • 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.

Insights

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We set out our approach to stewardship and how we strive to meet the UK Stewardship Code’s principles.
10 May 2024
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Defence stocks and ESG

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