BNY Mellon Real Return

Investment Objective

The objective of the fund is to achieve significant real rates of return in sterling terms predominantly from a portfolio of UK and international securities. The fund may also invest in deposits, money market instruments, derivative instruments, forward transactions and collective investment schemes.

Reference Index

LIBOR 1 Month plus 4%

Latest Meeting Note

Meeting Note 02 Jul 2013

The Newton Real Return Fund has a long history of generating strong absolute returns with relatively low volatility, including a positive return in 2008. These returns have been generated in a consistent manner and using what we believe ... Read more

The Newton Real Return Fund has a long history of generating strong absolute returns with relatively low volatility, including a positive return in 2008. These returns have been generated in a consistent manner and using what we believe to be a repeatable and transparent process. At the core of the fund is a collection of return seeking assets which are then complemented by risk mitigation/hedging positions. This provides the fund with two engines which have worked well together over time. By design the strategy is designed to reduce volatility rather than maximise returns, and given the core allocation to return seeking assets the relatively low volatility and drawdown of the fund are impressive. With this return seeking core it is unsurprising that the fund is relatively highly correlated to equity markets over time (0.6), however this correlation drops significantly during periods of equity market stress.

Performance

JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC YTD
2023 1.0 0.8 0.6 0.2 0.8 0.3 0.4 0.6 0.7 0.5 1.0 0.4 0.8
2022 0.2 0.8 0.7 0.6 0.7 0.0 0.1 0.2 0.6 0.3 0.5 0.8 0.6

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