FutureLegacy

DISCOVER THE FUTURELEGACY
MULTI-ASSET RANGE

A dynamic and sustainable approach to investing for and in retirement.

Future investing

Funds

Why Newton

The team

Resources

Insights

Go to capabilities

FUTURE INVESTING

Introducing FutureLegacy

FutureLegacy is a range of five risk-targeted multi-asset funds that, through the expertise at Newton Investment Management, aim to help clients achieve their long-term goals investing for and during their retirement.

FutureLegacy

Managed to remain within the risk target managed bands 3-7 from the UK’s leading risk-based financial planning system from Dynamic Planner, the FutureLegacy funds enable advisers to recommend a solution which aims to meet the needs, risk appetite and expectations of their client, identified as part of their advice process.

Actively managed

Actively managed by a dedicated team at Newton to manage volatility and take advantage of timely investment opportunities, drawing on the best ideas and expertise across the firm.

Global & sustainable

The funds look to invest globally for a fully diversified approach regardless of geography or sector. Drawing on Newton’s longstanding sustainable investment framework, the funds seek to select investments that demonstrate material involvement in specific sustainable investment themes and associated activities.

Directly invested

Providing investment flexibility to seek out opportunities to invest as well as transparency in costs.

Through the BNY Mellon FutureLegacy fund range, Newton offers a choice of multi-asset solutions to meet investors’ risk appetite.

Equity

Emerging Markets Equity

North American Equity

Europe ex UK Equity

UK Equity

Pacific ex Japan Equity

Japan Equity

Fixed Income

Emerging Market Debt

High Yield

Investment Grade

Sovereign

Cash

Cash and others

BNY Mellon FutureLegacy 3 Fund

Fund managers: Bhavin Shah and Martin Chambers

View fund details

EQUITY

BNY Mellon FutureLegacy 4 Fund

Fund managers: Bhavin Shah and Martin Chambers

View fund details

EQUITY

BNY Mellon FutureLegacy 5 Fund

Fund managers: Bhavin Shah and Martin Chambers

View fund details

EQUITY

BNY Mellon FutureLegacy 6 Fund

Fund managers: Bhavin Shah and Martin Chambers

View fund details

EQUITY

BNY Mellon FutureLegacy 7 Fund

Fund managers: Bhavin Shah and Martin Chambers

View fund details

EQUITY

Cash & Others includes Cash and Derivatives.

1. Source: Newton, 31 December 2024. Pie charts illustrate the long-term strategic asset allocation breakdown of equities and bonds by region/market.

The BNY Mellon FutureLegacy funds are actively managed typically by using forward-looking expectations of volatility. In doing so, the Investment Manager uses its own internal risk model, whilst also considering external independent risk profiling methodologies. Based on a risk profile scale of 1 (lowest) to 10 (highest), the funds target risk profiles of 3, 4, 5, 6 and 7 but this is not guaranteed. The risk profile targeted by each of the BNY Mellon FutureLegacy funds can be identified through the number included in the respective fund’s name. This risk profile is not the same as the risk and reward category shown in the funds’ Key Investor Information Document(s). The risk profiles of the funds are currently assessed against the risk ratings scale provided by Dynamic Planner but is subject to change at the ACD’s discretion.

Source for ratings: BNY Investments as at 31 December 2024. Ratings are for illustrative purposes only and should not be relied upon when making an investment decision. Dynamic Planner Risk Ratings should not be used for making an investment decision and it does not constitute a recommendation or advice in the selection of a specific investment or class of investments.

Defaqto: Risk Ratings uniquely map fund family members to Defaqto’s 10 risk profiles. These have been created in partnership with Moody’s Analytics. A Risk Rating of 1 indicates that a proposition represents the lowest risk profile; a Risk Rating of 10 indicates the highest risk profile.

Dynamic Planner: Risk-profiling process is driven by rigorous analysis of the underlying asset mix of a fund, as well as considering factors such as the flexibility of the investment mandate, monthly trend analysis of the underlying asset constituents and observed performance. Once this analysis is complete, the data is calibrated to the underlying asset forecast assumptions of the Dynamic Planner model. The expected risk of the fund is then determined using a scale from 1 (lowest) to 10 (highest) which can then be aligned to client risk profiles.

EV: EV risk-rated fund service is an easy way for advisers to turn their risk questionnaire’s output into suitable recommendations on the EV portal. For full ratings please refer to the EV adviser portal.

FinaMetrica: The FinaMetrica risk test provides a score matching clients' risk tolerance. This mappings guide helps facilitate the investment strategy selection process for a BNY Mellon FutureLegacy fund by matching clients' risk tolerance score to a fund.

Oxford Risk: Oxford Risk uses a quant risk model to determine the long-term risk of any fund or portfolio, providing a robust and reliable solution for mapping investors' risk profiles to suitable investments.

Square Mile: Square Mile is an independent funds research company that ‘rates’ funds, and provides opinion. The ratings are a guide to the conviction that its analysts have in the ability of a fund manager to achieve their outcome objectives over the longer term. The ratings range from AAA, to AA and A for actively managed funds. Rated passive funds are awarded an R for recommended and some younger funds, with shorter track records, are afforded a PP rating, as a ‘Positive Prospect’.

Synaptic: The Synaptic Risk Rating Service is derived from the risk framework provided by Moody's Analytic's Stochastic engine. It has been created to provide advisers with more robust, quantitative measures for risk than is generally available, and provide the opportunity for them to move away from volatility-based ratings.

Investing for all of our futures, creating a powerful legacy

At least 70% of the funds’ portfolios are invested in securities with sustainability (i.e. positive environmental and/or social) characteristics. These investments are selected using Newton’s longstanding proprietary sustainable investment framework.

Corporate sustainable investment framework

Companies which are eligible for inclusion in the funds’ portfolios must have material involvement in at least one of the funds’ sustainable investment themes (combatting climate change, responsible use of natural resources, human and economic development, and health and wellness) and at least one associated activity. These issuers will be either:

1. Contributors

Companies which are solving sustainability issues by providing products and/or services which benefit the environment and/or society. These businesses will have at least 30% of revenues derived from sustainable activities or 30% of their operational or capital expenditure focused on sustainable activities.

2. Aligners

Companies demonstrating strong sustainability practices, within their internal operations and value chain, across the most material areas of activities for the company. These businesses will typically have strong management programmes linked to sustainable activities. For example, efficiently using key resources, having credible commitments to carbon emissions reduction or prioritising employee health and wellbeing.

Sustainable investment restrictions

Newton’s sustainable investment restrictions are built on a combination of exclusions that avoid investments in security issuers involved in or associated with areas of activity that Newton deem to be harmful from either a social or environmental perspective.

To ensure no investments are made in activities Newton deems to be harmful from an environmental or social perspective, the following exclusionary screens are applied to the funds’ investment universe:

1. Issuers in breach of UN Global Compact principles (including human rights, labour, environment and anti-corruption)

2. Issuers producing tobacco products

3. Issuers involved in the manufacture of controversial weapons

4. Issuers with material involvement in (i.e. accounting for 10% or more of revenue):

─ Sale of tobacco products

─ Adult entertainment

─ Production of alcoholic beverages

─ Gambling operations

─ Extraction of thermal coal

─ Extraction and/or production of oil and gas

─ Extraction and/or production of oil and gas in offshore Arctic regions

─ Extraction and/or production of oil sands

─ Extraction and/or production of shale energy (fracking)

Source: Newton as at 28 November 2024. Please note, some strategies following Newton’s sustainable investment process may choose to add to these exclusions – but may never subtract.

Sovereign sustainable investment framework

Newton determines whether sovereign issuers demonstrate sustainability characteristics by using data points sourced from international organisations. Each issuer is assessed against four pillars (institutional capital, natural capital, human capital and economic capital) to determine how well it is performing from a sustainability perspective and how its management of key sustainability factors are progressing. These indicators are then combined to determine whether the issuer’s securities are suitable for investment.

KEY INVESTMENT RISKS

Objective/Performance Risk: There is no guarantee that the Funds will achieve their objectives.

Currency Risk: These Funds invest in international markets which means they are exposed to changes in currency rates which could affect the value of the Funds.

Derivatives Risk: Derivatives are highly sensitive to changes in the value of the asset from which their value is derived. A small movement in the value of the underlying asset can cause a large movement in the value of the derivative. This can increase the sizes of losses and gains, causing the value of your investment to fluctuate. When using derivatives, the Funds can lose significantly more than the amount they have invested in derivatives.

Changes in Interest Rates & Inflation Risk: Investments in bonds/money market securities are affected by interest rates and inflation trends which may negatively affect the value of the Funds.

Credit Ratings and Unrated Securities Risk: Bonds with a low credit rating or unrated bonds have a greater risk of default. These investments may negatively affect the value of the Funds.

Credit Risk: The issuer of a security held by the Funds may not pay income or repay capital to the Funds when due.

Emerging Markets Risk: Emerging Markets have additional risks due to less-developed market practices.

Shanghai-Hong Kong Stock Connect and/or the Shenzhen-Hong Kong Stock Connect (“Stock Connect”) risk: The Funds may invest in China A shares through Stock Connect programmes. These may be subject to regulatory changes and quota limitations. An operational constraint such as a suspension in trading could negatively affect the Funds’ ability to achieve their investment objectives.

Volcker Rule Risk:

The Bank of New York Mellon Corporation or one of its affiliates (“BNYM”) has invested in these Funds. As a result of restrictions under the “Volcker Rule,” which has been adopted by U.S. Regulators, BNYM must reduce its shareholding percentage so that it constitutes less than 25% of the Funds within, generally, three years of the Funds’ establishment (which starts when the Funds’ manager begins making investments for the Funds). Risks may include: BNYM may initially own a proportionately larger percentage of the Funds, and any mandatory reductions may increase Fund portfolio turnover rates, resulting in increased costs, expenses and taxes. Details of BNYM’s investment in the Funds are available upon request.

CoCo’s Risk: Contingent Convertible Securities (CoCo’s) convert from debt to equity when the issuer’s capital drops below a pre-defined level. This may result in the security converting into equities at a discounted share price, the value of the security being written down, temporarily or permanently, and/or coupon payments ceasing or being deferred.

Sustainable Funds Risk: The Funds follow a sustainable investment approach, which may cause them to perform differently than funds that have a similar objective but which do not integrate sustainable investment criteria when selecting securities. The Funds will not engage in stock lending activities and, therefore, may forego any additional returns that may be produced through such activities.

Investment in Infrastructure Companies Risk: The value of investments in Infrastructure Companies may be negatively impacted by changes in the regulatory, economic or political environment in which they operate.

Counterparty Risk: The insolvency of any institutions providing services such as custody of assets or acting as a counterparty to derivatives or other contractual arrangements, may expose the Funds to financial loss.

The value of investments can fall. Investors may not get back the amount invested. Income from investments may vary and is not guaranteed.

MEET THE TEAM

Bhavin Shah

Lead Portfolio Manager, Newton Investment Management

Bhavin joined Newton in June 2011 as a portfolio manager in the mixed assets investment team. Prior to joining Newton, he worked at SG Hambros for seven years where he was responsible for managing client portfolios focused on absolute return and multi-asset strategies. Bhavin is co-lead manager on numerous multi-asset accounts at Newton. In addition to portfolio management responsibilities, Bhavin is a member of the multi-asset Investment Risk Oversight Group. Bhavin holds an MSc in Mathematics with distinction and is a CFA charterholder.

Paul Flood

Head of Mixed Assets Investment, Newton Investment Management

Paul is Head of Mixed Assets Investment at Newton. He is also lead manager of the Newton Multi-Asset Diversified Return strategy, the Newton Multi-Asset Income strategy and the Newton Multi-Asset Growth strategy. He also provides leadership and analysis on asset allocation, derivatives and convertible bonds for the wider firm, having spent the earlier part of his career working on strategic asset allocation and derivative strategy. Paul is responsible for generating ideas within alternative assets and has been leading in this area since 2008. He is a member of the macro allocation group and provides feedback to the wider house on strategic and tactical asset allocation.

Paul joined Newton in 2004. He is a CFA charterholder and has completed the certificate in quantitative finance (CQF) after passing with distinction. Paul studied Astrophysics at the University of St Andrews and is a keen cyclist and runner, having recently cycled the length of the UK from Land’s End to John O’Groats and often participates in marathons.

Martin Chambers

Portfolio Manager, Newton Investment Management

Martin Chambers is a credit research and derivatives analyst, specialising in global investment grade and high-yield bonds across several sectors including financials and utilities. Martin is also part of the team responsible for the management of the Newton Sustainable Global Dynamic Bond strategy. Martin joined Newton in 2010, prior to which he worked at Deloitte, where he qualified as a chartered accountant (ACA) focusing on the insurance and investment management industries. Outside of work, Martin enjoys spending time with his young family and is a keen skier.

Nancy Last

Senior Portfolio Analyst, Newton Investment Management

Nancy Last, is a senior portfolio analyst working in the FutureLegacy team. Nancy, who joined Newton in 2017, initially worked in business control before moving into the portfolio implementation team.

Nancy has a first-class degree in business studies from the University of South Wales and has completed the Investment Management Certificate (IMC). Outside of work, Nancy enjoys spending time with family and going on long walks in the countryside.

Paul Byrne

Quantitative analyst and portfolio manager, quantitative equity team

Paul is a member of Newton’s multi-dimensional research team, and works within the quantitative equity team. Paul is a quantitative analyst with a focus on providing analysis to aid portfolio construction and risk management across Newton’s product range, while also being part of the portfolio management team across Newton’s FutureLegacy range and thematic mandates. Paul is also a member of the equity and multi-asset investment risk oversight groups and Investment Oversight Committee.

Prior to joining the investment team, Paul was an investment risk manager at Newton. Previously, Paul worked for Royal Bank of Scotland within the retail sector advisory team and as a structurer on the structured bond desk.

Paul has a BSc in Mathematics and holds the IMC, Certificate in Quantitative Finance (CQF) and is a CFA1 Charterholder

Joined Newton: 2010
Joined industry: 2007

CFA^® and Chartered Financial Analyst® are registered trademarks owned by CFA Institute.

NEWTON’S AUM

Assets under management

Newton’s AUM totals £81.3 billion as of 31 December 2024¹. This is split across multiple investment teams as shown here.

Equity income

Multi-Asset Solutions¹

Global Opportunities

Real Return

Small Cap Equities

Thematic strategies

Fixed Income

Emerging Markets & Asia Equities

UK Equities

Mixed assets and charities

Equity income

Multi-Asset Solutions¹

Global Opportunities

Real Return

Small Cap Equities

Thematic strategies

Fixed Income

Emerging Markets & Asia Equities

UK Equities

Mixed assets and charities

¹ Newton’s global AUM is adjusted lower to factor in any double counting of affiliate fund or fund-of-fund assets which can occur when a Newton multi-asset strategy invests in a BNY Mellon fund, that is sub-advised by Newton. At end December 2024, total assets invested by Newton multi-asset strategies on this basis was £2.6bn. To avoid double counting we extract these assets from Newton’s global AUM, which results in a total global AUM of £81.3bn for Newton. Mixed Assets and Charities team assets of £11.8bn includes £1.4bn of this form of double-counted assets. Multi-Asset Solutions team assets of £10.8bn includes £1.1bn of this form of double-counted assets. The AUM includes assets under advisement (AUA) for a model of securities that the Firm does not arrange or effect the purchase or sale of securities.

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).

RESOURCES

A helpful range of literature to support our FutureLegacy offering

Documents

BNY Mellon FutureLegacy - Range Mapping

RELATED INSIGHTS

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The 5Ws of Multi-Asset Investing

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Diversifying risk with liquid alternatives

Newton head of multi-asset solutions Dimitri Curtil argues in a world of lower expected equity premia and high cash rates, liquid alternatives can offer the potential of diversified alpha when equities do not deliver.

Addressing the retirement income conundrum

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Income in a volatile world: MAIF turns 10

The past decade has seen challenging market periods. Generating an income during these times when interest rates were very low has been tough but not impossible. Our infographic charts the BNY Mellon Multi-Asset Income Fund’s progression against the key macroeconomic events of the past 10 years.

At one with volatility

Janice Kim and Paul Flood of the Newton mixed assets team assess four macroeconomic themes and how they impact asset allocation.

Whatever your query, one of our team will be able to help. Get in touch today.

2166705 Exp : 30 June 2025