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 |