Why multi-asset?
BNY Mellon Investment Management’s multi-asset range comprises strategies that help a range of investors achieve their goals, whether it’s individuals saving for and in retirement or institutions.
Multi-asset funds aim to offer investors a way to access greater diversification.
BNY Mellon Investment Management’s multi-asset range comprises strategies that help a range of investors achieve their goals, whether it’s individuals saving for and in retirement or institutions.
1
During volatile times when the traditional 60/40 portfolio model comes into question, diversification is essential to protect a client’s capital from the vagaries of markets and the global economy. BNY Mellon Investment Management’s multi-asset strategies place emphasis on protecting capital while sourcing income and growth by investing across different asset classes, geographies, companies and themes, rather than being exposed to a single source of risk.
2
BNY Mellon Investment Management’s multi-asset funds seek exposure to asset classes and underlying securities with inflation-linked revenue streams such as infrastructure, property and renewables, including esoteric areas like music royalties and battery storage. Picking companies with sustainable and growing dividends is also a key tenet of the multi-asset range.
3
The BNY Mellon Investment Management multi-asset funds are risk profiled, meaning they can be matched to a variety of client risk attitudes. As well as helping to manage volatility expectations, the funds target a variety of investment outcomes for a client, whether they are seeking income, growth, a balance of the two, or a cash-plus return.
Great multi-asset design needs to be robust enough to accommodate as many possible futures as practicable because, unless you have a valid claim to omniscience, it is irresponsible to build a portfolio that only works on one pathway
Euan Munro, Chief Executive Officer, Newton Investment Management
Newton offers a choice of multi-asset solutions to meet investors’ unique mix of yield / risk appetite.
Fund Managers: Simon Nichols, Bhavin Shah, Paul Flood
Fund Managers: Bhavin Shah, Simon Nichols, Paul Flood
Fund Managers: Paul Flood, Bhavin Shah and Janice Kim
Fund Managers: Paul Brain, Howard Cunningham, Carl Shepherd, Jon Day, Parmeshwar Chadha
Fund Managers: Philip Shucksmith, Matthew Brown
Fund Managers: Paul Brain, Howard Cunningham, Carl Shepherd, Jon Day, Parmeshwar Chadha
Fund Managers: Paul Brain, Scott Freedman, Martin Chambers, Trevor Holder, Carl Shepherd
Benchmark: The Fund will measure its performance against the UK Investment Association Mixed Investment 40-85% Shares NR Sector average as a comparator benchmark (the “Benchmark”). The Fund will use the Benchmark as an appropriate comparator because it includes a broad representation of funds with levels of equity and bond exposure similar to those of the Fund. The Fund is actively managed, which means the Investment Manager has discretion over the selection of investments, subject to the investment objective and policies as disclosed in the Prospectus.
Source for ratings: BNY Mellon as at 30 June 2023. 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.
Benchmark: The Fund will measure its performance against a composite index, comprising 60% MSCI AC World NR Index and 40% ICE Bank of America Global Broad Market GBP Hedged TR Index, as a comparator benchmark (the “Benchmark”). The Fund will use the Benchmark as an appropriate comparator because the Investment Manager utilises this index when measuring the Fund’s income yield. The Fund is actively managed, which means the Investment Manager has absolute discretion to invest outside the Benchmark subject to the investment objective and policies disclosed in the Prospectus. While the Fund’s holdings may include constituents of the Benchmark, the selection of investments and their weightings in the portfolio are not influenced by the Benchmark. The investment strategy does not restrict the extent to which the Investment Manager may deviate from the Benchmark.
The Fund can invest more than 35% of net assets in different Transferable Securities and Money Market Instruments issued or guaranteed by any EEA State, its local authorities, a third country or public international bodies of which one or more EEA States are member.
Source for ratings: BNY Mellon as at 30 June 2023. 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.
Benchmark: The Fund will measure its performance before fees against SONIA (30-day compounded) +3% per annum over five years as a target benchmark (the “Benchmark”). SONIA is a nearly risk-free rate meaning no bank credit risk is included, the rate can rise or fall as a result of central bank policy decisions or changing economic conditions. The Fund will use the Benchmark as a target for the Fund’s performance to match or exceed because it is representative of sterling cash and the Fund’s investment objective is to seek a return in excess of sterling cash +3% per annum. The Fund is actively managed, which means the Investment Manager has discretion over the selection of investments, subject to the investment objective and policies as disclosed in the Prospectus.
The Fund can invest more than 35% of net assets in different Transferable Securities and Money Market Instruments issued or guaranteed by any EEA State, its local authorities, a third country or public international bodies of which one or more EEA States are member.
Source for ratings: BNY Mellon as at 30 June 2023. 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.
Benchmark: The Fund will measure its performance before fees against SONIA (30-day compounded) +4% per annum over five years as a target benchmark (the “Benchmark”). SONIA is a nearly risk-free rate meaning no bank credit risk is included, the rate can rise or fall as a result of central bank policy decisions or changing economic conditions. The Fund will use the Benchmark as a target for the Fund’s performance to match or exceed because, in typical market conditions, it represents a target that will be equal to or greater than UK inflation rates over the same period and is commensurate with the Investment Manager’s approach. The Fund is actively managed, which means the Investment Manager has discretion over the selection of investments, subject to the investment objective and policies as disclosed in the Prospectus.
Source for ratings: BNY Mellon as at 30 June 2023. 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.
Benchmark: The Fund will measure its performance before fees against SONIA (30-day compounded) +4% per annum over five years as a target benchmark (the “Benchmark”). SONIA is a nearly risk-free rate meaning no bank credit risk is included, the rate can rise or fall as a result of central bank policy decisions or changing economic conditions. The Fund will use the Benchmark as a target for the Fund’s performance to match or exceed because, in typical market conditions, it represents a target that will be equal to or greater than UK inflation rates over the same period and is commensurate with the Investment Manager’s approach. The Fund is actively managed, which means the Investment Manager has discretion over the selection of investments, subject to the investment objective and policies as disclosed in the Prospectus.
The Fund can invest more than 35% of net assets in different Transferable Securities and Money Market Instruments issued or guaranteed by any EEA State, its local authorities, a third country or public international bodies of which one or more EEA States are member.
Benchmark: The Fund will measure its performance before fees against SONIA (30-day compounded) +2% per annum over five years as a target benchmark (the “Benchmark”). SONIA is a nearly risk-free rate meaning no bank credit risk is included, the rate can rise or fall as a result of central bank policy decisions or changing economic conditions. The Fund will use the Benchmark as a target for the Fund’s performance to match or exceed because it is representative of sterling cash and the Fund’s investment objective is to seek a minimum return of sterling cash +2% per annum. The Fund is actively managed, which means the Investment Manager has discretion over the selection of investments, subject to the investment objective and policies as disclosed in the Prospectus.
The Fund can invest more than 35% of net assets in different Transferable Securities and Money Market Instruments issued or guaranteed by any EEA State, its local authorities, a third country or public international bodies of which one or more EEA States are member.
Source for ratings: BNY Mellon as at 30 June 2023. 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.
Benchmark: The Fund will measure its performance before fees against SONIA (30-day compounded) +2% per annum over five years as a target benchmark (the “Benchmark”). SONIA is a nearly risk-free rate meaning no bank credit risk is included, the rate can rise or fall as a result of central bank policy decisions or changing economic conditions. The Fund will use the Benchmark as a target for the Fund’s performance to match or exceed because SONIA (30 day compounded) is representative of sterling cash and the Fund’s investment objective is to seek a minimum return of sterling cash +2% per annum. 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.
The Fund can invest more than 35% of net assets in different Transferable Securities and Money Market Instruments issued or guaranteed by any EEA State, its local authorities, a third country or public international bodies of which one or more EEA States are member.
Objective: To achieve capital growth and potential for income over the long term (5 years or more) while being managed to a pre-defined level of risk. The Fund will aim to maintain a risk profile classification of 3 from a scale of 1 (lowest) to 10 (highest) which is assessed against the risk ratings scale provided by an external third-party risk rating agency.
Benchmark: This fund is actively managed without benchmark-related constraints. The Fund uses a composite index, comprising 15% SONIA GBP, 55% ICE BofAML Global Broad Index GBP Hedged and 30% MSCI ACWI GBP NR as a point of reference (comparator) against which the ACD invites Shareholders to compare the Fund’s performance. The ACD considers the composite index to be an appropriate comparator because it includes a broad representation of the asset classes, sectors and geographical areas in which the Fund predominantly invests.
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 Mellon as at 30 June 2023. 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.
Benchmark: This fund is actively managed without benchmark-related constraints. The Fund uses a composite index, comprising 10% SONIA GBP, 45% BAML Global Broad Index GBP Hedged and 45% MSCI ACWI GBP NR as a point of reference (comparator) against which the ACD invites Shareholders to compare the Fund’s performance. The ACD considers the composite index to be an appropriate comparator because it includes a broad representation of the asset classes, sectors and geographical areas in which the Fund predominantly invests.
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 Mellon as at 30 June 2023. 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.
Benchmark: This fund is actively managed without benchmark-related constraints. The Fund uses a composite index, comprising 5% SONIA GBP, 35% BAML Global Broad Index GBP Hedged and 60% MSCI ACWI GBP NR as a point of reference (comparator) against which the ACD invites Shareholders to compare the Fund’s performance. The ACD considers the composite index to be an appropriate comparator because it includes a broad representation of the asset classes, sectors and geographical areas in which the Fund predominantly invests.
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 Mellon as at 30 June 2023. 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.
Objective: To achieve capital growth and potential for income over the long term (5 years or more) while being managed to a pre-defined level of risk. The Fund will aim to maintain a risk profile classification of 6 from a scale of 1 (lowest) to 10 (highest) which is assessed against the riskratings scale provided by an external third-party risk rating agency.
Benchmark: This fund is actively managed without benchmark-related constraints. The Fund uses a composite index, comprising 25% BAML Global Broad Index GBP Hedged and 75% MSCI ACWI GBP NR as a point of reference (comparator) against which the ACD invites Shareholders to compare the Fund’s performance. The ACD considers the composite index to be an appropriate comparator because it includes a broad representation of the asset classes, sectors and geographical areas in which the Fund predominantly invests.
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 Mellon as at 30 June 2023. 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.
Objective: To achieve capital growth and potential for income over the long term (5 years or more) while being managed to a pre-defined level of risk. The Fund will aim to maintain a risk profile classification of 7 from a scale of 1 (lowest) to 10 (highest) which is assessed against the riskratings scale provided by an external third-party risk rating agency.
Benchmark: This fund is actively managed without benchmark-related constraints. The Fund uses a composite index, comprising 10% BAML Global Broad Index GBP Hedged and 90% MSCI ACWI GBP NR as a point of reference (comparator) against which the ACD invites Shareholders to compare the Fund’s performance. The ACD considers the composite index to be an appropriate comparator because it includes a broad representation of the asset classes, sectors and geographical areas in which the Fund predominantly invests.
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 Mellon as at 30 June 2023. 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.
Newton is a founding supporter of the charity The Centre for Financial Capability, and is a founding member of its ground-breaking collaborative project KickStart Money, which aims to take financial education to almost 20,000 UK primary school children, catalysing a movement to build a savings culture for the future.
Key investment risks:
For a full lists of risks applicable to these funds, please refer to the prospectus or other offering documents.
The value of investments can fall. Investors may not get back the amount invested. Income from investments may vary and is not guaranteed.
1 Source: Newton, data as of 30.06.2023 and for FutureLegacy Funds as at 28.02.2023
2 Source: Newton, data as of 29.06.2023. Provided for Newton Multi-Asset Moderate Portfolio which is not invested in by any client. Projected model portfolio data is not based on an actual trading history.
Newton’s foundation in multi-asset investing began in 1978 with the UK Institutional Balanced strategy, a global balanced portfolio of equities and fixed interest securities, being managed since the formation of the company. Underpinning the Newton approach are three key strengths:
Hover to learn more
The research team seek out the best ideas from around the world through focused security selection, utilising a long-term thematic approach to identify both opportunities and risks in the investment universe. Collaboration between analysts and portfolio managers ensure that the characteristics of potential ideas are aligned with client strategies and balance independent analysis together with the expertise and diversity of views and experiences across the house.
Hover to learn more
Teams at Newton come together to make decisions quickly and decisively, facilitating this strength is the blending of skills to include both those that have worked together for a long time and those with newer perspectives. Decision making accountability is central to this strength requiring teams to share ideas across desks, seek-out different views gaining both self and market awareness.
Hover to learn more
The integration of ESG analysis into research and portfolio management provides the portfolio managers with specialist resource for deep dives, engagement and stewardship. This dedicated resource enables analysts and portfolio managers access to thorough evaluation of ESG issues both at the point of security selection as well as ongoing monitoring.
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 June 2023, total assets invested by Newton multi-asset strategies on this basis was £2.8bn. To avoid double counting we extract these assets from Newton’s global AUM, which results in a total global AUM of £86.9bn for Newton. Mixed Assets and Charities team assets of £11bn includes £1.7bn of this form of double-counted assets. Multi-Asset Solutions team assets of £14.9bn includes £1.1bn of this form of double-counted assets.
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).
Chief Investment Officer Multi-Asset, leads a team of 34 professionals covering the full spectrum of multi-asset investing. For each fund or portfolio NIM allocates a named lead portfolio manager (sometimes more than one), as well as an alternate, supported by a wider team of generalists and specialists, depending on the benchmark, target and breadth of investment universe a client is interested in. Named fund managers will draw widely in terms of idea generation but have final say and accountability for all decisions made.
Joined Newton: 2022
Joined industry: 2000
Paul is Head of Mixed Assets Investment, and also lead manager of 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.
Joined Newton: 2004
Joined industry: 2004
Paul is deputy chief investment officer of multi-asset. He joined Newton in 2004, and currently manages a range of global bond portfolios. He is also part of the leadership team for the Newton Global Dynamic Bond strategy. Paul leads Newton’s macro thematic work and is chairman of strategic asset allocation group.
Joined Newton: 2004
Joined industry: 1984
Head of Fixed Income
Ella is head of the fixed-income team. Ella joined Newton in July 2023 and has 20 years’ experience in managing a variety of fixed-income portfolios. Ella was previously a senior investment manager at Pictet Asset Management on the global bonds team. Prior to that, Ella held investment management positions at Wellington Management and Invesco Asset Management.
Ella was recognised as one of the 50 leading women in hedge funds for 2019 and is an active advocate of developing and nurturing diverse talent in the industry.
Joined Newton: 2023 Joined industry: 2003.
Hilary looks after a range of charity clients including educational, religious, medical and social charities. She has a wealth of experience in the fund management industry, having worked at James Capel and Charterhouse Bank before joining Newton following the acquisition of Capital House.
Joined Newton: 1982
Joined industry: 1977
Dimitri Curtil, Global head of multi-asset solutions, is the Investment Team Leader with responsibility for the FutureLegacy range, alongside other retirement solutions including the Smart Path Target Date range. In addition to overseeing the team of portfolio managers and researchers responsible for the firm’s systematic multi-asset strategies, Dimitri also leads the development and enhancement of the research underpinning the firm’s multi-asset strategies. Dimitri’s specific areas of research include absolute return and total return strategies as well as risk parity, alternative risk premia and tail-risk hedging solutions.
Joined Newton: 2021
Joined industry: 2005
Newton Research Team:
All the portfolio management teams are supported by the Newton Global Research Team which consists of 66 investment professionals as at 30 June 2023 (some of whom combine research and portfolio management roles). The research platform blends thematic, fundamental, macroeconomic, geopolitical, regional, quantitative, accounting, private markets and investigative research that takes material ESG risks, opportunities and issues into account (where relevant) to give Newton Investment Management the widest perspective on the investment landscape.
DOC ID: 1525200 Expiry 23 December 2023
This is a marketing communication