Dynamic Factor Premia

Strategy Highlights

: A liquid diversifying strategy that seeks to generate returns that are uncorrelated with traditional markets.

Dynamic risk budgeting across four underlying strategies: macro relative value, cross-asset trend, equity factor long/short and commodity long/short.

Multi-strategy approach provides diversification across risk premia, markets and time horizons.

Capital-efficient solution that is designed to work with, rather than against, high cash rates.

Learn more about our multidimensional investment philosophy

Strategy profile

Objective: The strategy seeks return of cash + 6% and risk of 10% over 3-5 years. However, a positive return is not guaranteed, and a capital loss may occur.
Performance Benchmark: The ICE BofA US 3-Month Treasury Bill Index 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.
Risk: Targets 10% volatility (total risk).
Strategy inception: November 18, 2021

Investment team

Newton’s multi-asset solutions (MAS) team creates robust, risk-efficient outcomes through a fundamentally driven and systematically delivered investment process. The MAS team has over 40 years’ history of innovating portfolio solutions which aim to meet clients’ investment challenges and objectives.

A team of 13 investment professionals.

Want to find out more?

Ryan Arita

Portfolio manager, Asset Allocation team

Dimitri Curtil

Joint Deputy Chief Investment Officer, Global Head of Multi-Asset Solutions

James H Stavena

Head of portfolio management, Multi-Asset Solutions

Torrey K Zaches

Portfolio manager, multi-asset solutions

Key Investment Risks

: Objective/Performance Risk: There is no guarantee that the strategy will achieve its objectives.

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 and 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.

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

Building Resilient Portfolios: The Role of Liquid Diversifiers

We examine how liquid, diverse strategies and client-centric design can build resilient portfolios in a volatile world.

March 12, 2025 Catherine Doyle

Blog

Multi-Asset Outlook 2025: Mixed Signals

The multi-asset solutions team provides an assessment of the macro landscape.

February 13, 2025 Newton multi-asset solutions team

Article

Alpha Drivers for Deliberately Different Solutions

Our modular multi-strategy solutions offer diversified exposure to multiple return drivers.

January 16, 2025 Dimitri Curtil

Past performance is not a guide to future performance. 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.