Strategy Highlights

  • Three overarching themes aligned with UN Sustainable Development Goals – Earth, Health and Wealth
  • Long-term thematic research targets areas with strong growth potential, not ‘old’ profit pools
  • Focus on ‘compounders’ – exceptional, leading businesses with long-term growth potential
  • Fundamental bottom-up research
  • Investing in companies that positively manage the material impacts of their operations and products on the environment and society
  • Actively omitting companies involved in areas of high social cost, environmental degradation or violation of the UN Global Compact Principles

This strategy is offered by Newton Investment Management Ltd (‘NIM’). NIM is part of the Newton Investment Management Group.

Strategy Profile

Objective

To achieve long-term capital growth by investing in emerging-market securities that demonstrate attractive investment attributes and are deemed by Newton to be sustainable.

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 process 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.

Strategy inception

December 2021

Investment Team

Our Sustainable Global Emerging Markets strategy is managed by an experienced team. In-house research analysts are at the core of our investment process, and our multidimensional research platform spans fundamental, thematic, responsible investment, quantitative, geopolitical, investigative and private-market research to promote better-informed investment decisions.

Want to find out more?

Liliana Castillo Dearth
Liliana Castillo Dearth

Head of emerging markets and Asia equities

Julianne McHugh
Julianne McHugh

Head of sustainable equities

Alex Khosla
Alex Khosla

Portfolio manager, Emerging Markets and Asia Equities team

Zoe Kan
Zoe Kan

Portfolio manager, emerging markets and Asia equities team

Nick Pope
Nick Pope

Portfolio manager, Sustainable Equity strategies

Fei Chen
Fei Chen

Investment analyst

Aditya Shah
Aditya Shah

Portfolio analyst, Emerging Markets and Asia Equities team

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 programs. 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.
  • Sustainable Strategies Risk: The strategy follows a sustainable investment approach, which may cause it to perform differently than strategies that have a similar objective but which do not integrate sustainable investment criteria when selecting securities.