Discover responsible investing

Sustainable
investing at Newton Investment Management

What does Sustainable investing mean for Newton Investment Management?

Newton understands the investments it makes can have far-reaching influence – not just on its clients’ financial prospects, but on environmental and social factors shaping those prospects, such as:

  • Climate change
  • Human rights in supply chains
  • Diversity and fairness across workforces.

Newton believes the interests of investors, and of society more widely, can be mutually supportive. Reflecting this belief, Newton is an active and engaged owner of financial assets, investing in a manner it believes meets its responsibilities to clients and society as a whole.

Across the portfolios it manages, Newton uses a thematic framework, in the belief themes provide necessary perspective and support idea generation and risk management. In seeking to identify the drivers of long-term, structural change in the world, Newton’s investment team has currently identified nine influential themes.

In Newton’s sustainable strategies, a particularly influential theme is Earth matters. This theme considers a wide scope of environmental concerns and focuses on the key areas of net zero (achieving a balance between the amount of greenhouse gas emissions produced and the amount removed from the atmosphere), electrification and the circular economy.

Other themes, many of which also include elements conducive to sustainable investing, include:

Environmental, Social and Governance (ESG) Investment Approach Risk: This Fund can be considered to follow an ESG investment approach or incorporate elements of an ESG investment approach, which may cause it to perform differently than other funds that have a similar objective but which do not integrate an ESG investment approach (or elements thereof) when selecting securities. In addition, in following an ESG investment approach, the Fund is dependent upon information and data from third parties (which may include providers for research reports, screenings, ratings and/or analysis such as index providers and consultants). Such information or data may be incomplete, inaccurate or inconsistent.

According to Newton, the impact of structural change will manifest across traditional economic sectors and will be significant in magnitude and long-term in duration.

Invest with purpose

Active engagement at Newton Investment Management

Newton aims to support positive change through voting and engagement with companies in the belief companies which run their businesses for the long-term, actively managing their risks, can produce more resilient returns for shareholders and better balance the interests of all stakeholders.

Newton’s engagement activities are not limited to companies. The group also plays an active role in the development of best practices, standards and regulations. In doing so, it aims to achieve a better understanding, have greater influence and enhance the rights of investors and wider stakeholder groups.

Newton's engagement in action - highlights from Q4 2021:

  • Voted at 51 Annual General Meetings and 26 Extraordinary General Meetings on behalf of clients.

  • Engaged with 28 companies with the primary purpose of raising ESG concerns.

What's Newton Investment Management's sustainable investment process?

Newton’s focus is on companies run for the long term, those that effectively balance the interests of stakeholders while also actively managing material risks for their industry (or economy). Newton believes such companies can deliver resilient returns for investors.

Active ownership

The integration of ESG inputs into investment research is reinforced by active engagement and voting.

Deep insights

Rigorous investment research and forensic accounting conducted by sector analysts and Newton's dedicated responsible investment team provides global perspectives.

Collaborative approach

Building partnerships with clients, Newton recognises the power of external alliances to leverage change on scale.

Bold decisions

A Conviction-led approach to investing stepping away from indices and ensuring engagement is done for the benefit of the portfolio.

ESG reporting

Providing detailed reports on environmental and social footprint of portfolios as well as stewardship activities carried out on clients’ behalf.

Newton aims to optimise performance for its clients by investing in what it believes to be well-managed, sustainable companies and governments. Its sustainable strategies seek to support – invest in – entities that are:

Solutions providers

Companies that feature structural growth opportunities, such as those providing solutions to environmental or social challenges.

Balanced

Entities which can manage social and environmental factors well enough, while still capable of generating gains for shareholders.

In transition

Recognise issues and are, or can, adapt their business models to reverse potentially harmful actions.

Not involved in market failures

Avoid or omit companies involved in areas of high social cost, environmental degradation, or which are violators of the UN Global Compact Principles.

Sustainable ‘red lines’

Newton’s principles-based ‘red lines’ give the responsible investment team veto powers against investing in a particular security if they believe a company or government is beyond redemption and cannot improve. These red lines:

  • seek to ensure investments do not violate the UN Global Compact’s 10 principles that promote responsible corporate citizenship (relating to areas such as corruption, labour standards, human rights and the environment).
  • help Newton avoid companies with characteristics incompatible with the aim of limiting global warming to 2°C; incorporate a tobacco exclusion as Newton does not view tobacco business as compatible with its commitment to sustainable improvement.
Why Newton Investment Management?

Brought to you by Newton Investment Management

    Scale
    Expertise recognised
    Commitment
    in practice
    Experience
    Solution
    focus
    Logo icon
    1circle-filled-01

* Source: Newton Investment Management as at 30.09.2021
1 Source: UN PRI, 2020

Solution focus

Newton's suite of sustainable strategies seek both positive investment returns and positive societal outcomes.

Solution focus
Scale*
Expertise recognised
Commitment in practice
Experience

* Source: Newton Investment Management as at 30.09.2021
1Source: UN PRI, 2020

Associations and Partnerships

Part of the 100 Black Interns programme, which offers a range of investment internships to black graduates.

Newton has signed up to the international Net Zero Asset Managers initiative to support the goal of net zero greenhouse gas emissions by 2050 or sooner, in line with global efforts to limit warming to 1.5 degrees Celsius; and to support investing aligned with net zero emissions by 2050 or sooner.

Newton's Sustainable Fund range

The value of investments can fall. Investors may not get back the amount invested.

BNY Mellon Sustainable Global Real Return Fund (EUR)

Fund Managers: Philip Shucksmith, Matthew Brown

BNY Mellon Sustainable Global Dynamic Bond Fund

Fund Managers: Team approach

BNY Mellon Future Earth Fund

 

Fund Managers: Philip Shucksmith, Paul Byrne

Meet the team

Newton’s dedicated responsible investment team is fully integrated across its investment process, working alongside the group’s conventional financial analysts to inform investment decisions.
curt-custard
Curt Custard

Interim Head of Sustainable Investment

Burger-Ian image
Ian Burger
Head of Responsible Investment
McAllister-Lloyd
Lloyd McAllister

Head of ESG Research

law-jennifer
Jennifer Law

Head of Stewardship

White-Rebecca
Rebecca White
Responsible Investment Analyst
Alexander Parkinson image
Alexander Parkinson

Co-Head of Responsible Investment Data Integration

brennen-niall
Niall Brennan

Co-Head of Responsible Investment Data Integration

Sakshi Bahl Image
Sakshi Bahl
Responsible Investment Analyst (BNY Mellon India, outsourced service provider to Newton Investment Management)
carolyn-hewitt
Carolyn Hewitt

Responsible investment product advocate

ragi-khimasia
Ragi Khimasia

Responsible Investment Analyst

tanushree-chandhok
Tanushree Chandhok

Responsible investment stewardship analyst<br>(BNY Mellon India, outsourced service provider to Newton Investment Management)

parag-saxena
Parag Saxena

Responsible investment analyst<br>(BNY Mellon India, outsourced service provider to Newton Investment Management)

Resources

No data was found

For a full list of risks applicable to this fund, please refer to the Prospectus or other offering documents. Please refer to the prospectus, and the KIID before making any investment decisions. Documents are available in English and an official language of the jurisdictions in which the Fund is registered for public sale. Go to fund-centre.

BNY Mellon Sustainable Global Dynamic Bond Fund’s Benchmark: The Fund will measure its performance against 1 month EURIBOR + 2% per annum (the “Cash Benchmark”). The Cash Benchmark is used as a target against which to measure the performance of the Fund over 5 years before fees.

EURIBOR is the Euro Interbank Offer Rate and is a reference rate that is constructed from the average interest rate at which Eurozone banks offer unsecured short-term lending on the inter-bank market.

The Fund is actively managed, which means the Investment Manager has discretion over the selection of investments, subject to the investment objective and policies disclosed in the Prospectus.

BNY Mellon Sustainable Global Real Return Fund’s Benchmark: The Fund will measure its performance against 1 month EURIBOR + 4% per annum (the “Cash Benchmark”). The Cash Benchmark is used as a target against which to measure the performance of the Fund over 5 years before fees.

EURIBOR is the Euro Interbank Offer Rate and is a reference rate that is constructed from the average interest rate at which Eurozone banks offer unsecured short-term lending on the inter-bank market.

The Fund is actively managed, which means the Investment Manager has discretion over the selection of investments, subject to the investment objective and policies disclosed in the Prospectus.

Important information

Investment Managers are appointed by BNY Mellon Investment Management EMEA Limited (BNYMIM EMEA), BNY Mellon Fund Managers Limited (BNYMFM), BNY Mellon Fund Management (Luxembourg) S.A. (BNY MFML) or affiliated fund operating companies to undertake portfolio management activities in relation to contracts for products and services entered into by clients with BNYMIM EMEA, BNY MFML or the BNY Mellon funds.

Assets under management (AUM) relates to the combined assets managed by the Newton Investment Management group. From 1 September 2021, Newton group of companies includes Newton Investment Management Limited (NIM) and Newton Investment Management North America LLC (NIMNA).

584802