Investment Objective
The objective of the Sub-Fund is to achieve a total return in excess of a cash benchmark over an investment horizon of 3-5 years.
Reference Index
LIBOR USD 1 Month
Latest Meeting Note
Meeting 15 Sep 2023
The team take an actively managed, absolute-return investment approach, with an emphasis on capital preservation. The investment team focuses on security selection, asset class flexibility and simple hedging strategies with a dual purpos...
The team take an actively managed, absolute-return investment approach, with an emphasis on capital preservation. The investment team focuses on security selection, asset class flexibility and simple hedging strategies with a dual purpose of managing risk and aiming to achieve attractive long-term total returns. There are no restrictions on the strategy’s asset allocation. The portfolio is able to shift between asset classes depending on Newton’s thematic view of the world. The portfolio management team aims to identify the best return seeking opportunities globally whilst also emphasising capital preservation. The strategy places strong emphasis on core holdings with the capacity to generate capital and income – supplemented as appropriate by risk-offsetting positions to help dampen the impact of falling markets. The emphasis on liquidity means that Newton can adjust the positioning proactively when opportunities present themselves. The universe consists of 20,000 securities of which c. 3000 are analysed based across a number of micro (IoT, natural capital) and macro themes (eg big government, China influence, financialisation). From here a recommended securities list is created (c. 600 across asset classes). In the portfolio construction process, the team look to select their best ideas based on macro views, quant assessment, security characteristics and the expected risk/return, ultimately creating a multi-asset portfolio of around 110 securities. The final element is a risk management hedging strategy that helps to considerably lower the volatility profile of the fund.
Performance
JAN | FEB | MAR | APR | MAY | JUN | JUL | AUG | SEP | OCT | NOV | DEC | YTD | ||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
2023 | 0.1 | 0.9 | 0.1 | 0.2 | 0.8 | 0.7 | 0.1 | 0.3 | 0.6 | 0.2 | 0.1 | 0.4 | 1.0 | |
2022 | 0.6 | 0.4 | 0.6 | 0.3 | 0.5 | 0.4 | 0.4 | 0.1 | 0.9 | 1.0 | 0.6 | 1.0 | 0.5 |