Newton's specialist multi-asset strategy
Objective
To achieve long-term capital growth from investment in a diversified portfolio of international securities, managed against a tailored client-specific benchmark.
Philosophy and process
Our investment philosophy is based upon our conviction that no company, market or economy can be considered in isolation; each must be understood in a global context. We believe that events occurring around the world influence all financial markets and therefore successful investment in internationally diversified securities requires a thorough understanding of the world as a whole.
Our global, thematic approach allows us to gain long-term perspective on global financial markets and economies and always to consider the 'big picture'. Perspective is a defining feature of our investment process; it helps us to anticipate how the world will change and it directs analysts and portfolio managers towards profitable opportunities.
Our specialist multi-asset portfolios are constructed using our research-driven/'bottom-up' investment process. We do not follow either a value or growth investment style exclusively; instead, we concentrate on investing in attractively valued securities with a sustained allocation to bonds and cash.
Strategy profile
| Benchmark: | Specialist benchmark |
|---|---|
| Performance objective: | To outperform the benchmark by 1% to 2% per annum |
| Typical number of holdings*: | 140 to 160 |
| Tracking error*: | 1.5% to 5% (over the long term) |
| Strategy AUM: | £1,279m (as at 31 December 2011) |
| Strategy inception: | GIPS®-compliant composite inception: 1 January 1996 |
Distinguishing features
- Tailored portfolio to meet client-specific requirements
- A constantly evolving and forward-looking approach that anticipates change and identifies opportunities
- Benefits from a broad perspective owing to our global, thematic outlook and our single location
- Not compelled to hold securities included in the benchmark; stock selection is driven by the use of investment themes, rather than by benchmark composition
* We do not define specific and rigid tracking error parameters for the portfolios: tracking error is monitored (using APT and Style Research models). Nor do we define specific number of holdings, the figures highlighted are a typical range of holdings expected over the long term.
