UK Lgps Global Dynamic Bond (Responsible)

The Global Dynamic Bond (Responsible) strategy was formerly referred to as the Sustainable Global Dynamic Bond 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 sovereign issuers that demonstrate sustainable behaviours, and bonds of companies that demonstrate positive sustainability characteristics by either contributing to or aligning with Newton’s proprietary sustainable investment themes
  • Actively omitting issuers 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
  • Global investment universe, with the flexibility to use stabilising assets and hedging positions to provide downside protection
Learn more about our multidimensional investment philosophy

Strategy profile

Objective

The strategy seeks to achieve income and capital growth over the medium term (3-5 years). It is managed to seek a minimum return of cash (SONIA (30-day compounded)) +2% per annum over five years before fees. In doing so, it aims to achieve a positive return on a rolling three-year basis (meaning a period of three years, no matter which day you start on). However, a positive return is not guaranteed and a capital loss may occur.

Performance benchmark

SONIA (30-day compounded) +2%.

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.

Literature

RI report Sustainable global dynamic bond

Responsible investment report

Stewardship activities (voting and engagement) for the last quarter and ESG metrics.

Download Report

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
Trevor Holder
Trevor Holder

Portfolio manager, Fixed Income team

Ella Hoxha
Ella Hoxha

Head of Fixed Income

Martin Chambers
Martin Chambers

Credit analyst, Fixed Income team

Scott Freedman
Scott Freedman

Credit analyst & portfolio manager, Fixed Income team

Howard Cunningham
Howard Cunningham

Portfolio manager, Fixed Income team

Jon Day
Jon Day

Portfolio manager, Fixed Income team

Catherine Doyle
Catherine Doyle

Investment specialist

Sinead Prendergast
Sinead Prendergast

Credit research analyst, Fixed Income 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.
  • Performance aim risk: The performance aim is not a guarantee, may not be achieved and a capital loss may occur. Strategies which have a higher performance aim generally take more risk to achieve this and so have a greater potential for returns to vary significantly.
  • 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.
  • Changes in interest rates & inflation risk: Investments in bonds/money market securities are affected by interest rates and inflation trends which may negatively affect the value of the strategy.
  • Credit ratings and unrated securities risk: Bonds with a low credit rating or unrated bonds have a greater risk of default. These investments may negatively affect the value of the strategy.
  • Credit risk: The issuer of a security held by the strategy may not pay income or repay capital to the strategy when due.
  • Emerging markets risk: Emerging Markets have additional risks due to less-developed market practices.
  • China Interbank Bond Market and Bond Connect risk: The strategy may invest in China interbank bond market through connection between the related Mainland and Hong Kong financial infrastructure institutions. These may be subject to regulatory changes, settlement risk and quota limitations. An operational constraint such as a suspension in trading could negatively affect the strategy’s ability to achieve its investment objective.
  • CoCos risk: Contingent convertible securities (CoCos) convert from debt to equity when the issuer’s capital drops below a pre-defined level. This may result in the security converting into equities at a discounted share price, the value of the security being written down, temporarily or permanently, and/or coupon payments ceasing or being deferred.
  • 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

Blog

Fixed-income outlook 2025: Opportunity and uncertainty

We assess the global outlook for 2025 and uncover the key areas of opportunity for bond investors.
16 December 2024 Ella Hoxha
Blog

US election: Third time’s a charm?

We consider the broad investment implications of Donald Trump’s US election victory.
13 November 2024 Brendan Mulhern
Blog

UK Budget: Key takeaways

We assess the impact of the Budget on bond markets.
01 November 2024 Howard Cunningham