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A flexible and transparent global multi-asset strategy designed to seek absolute returns irrespective of market conditions
Actively managed, absolute-return investment approach, with an emphasis on capital preservation
A focus on security selection, asset class flexibility and simple hedging strategies to manage risk and offer investors the potential to enjoy attractive long-term total returns
Flexible, transparent, single portfolio of predominantly direct and liquid investments
The Real Return fund is a conviction-based strategy with no regional, sector or performance reference constraints. It adopts a forward-looking approach that seeks to anticipate change, manage risk, and identify opportunities.
Its simple structure, with a stable core of predominantly traditional return-seeking assets, and a layer of risk-offsetting positions, aim to dampen volatility and preserve capital.
Every time we consider a security or look at an industry or country, its in the context of whats happening across the world. We believe the investment landscape is shaped over the long term by some key trends, and we use a range of global investment themes to capture these.
Machines and networks are becoming more intelligent. This is disrupting the labour market, as machines increasingly replace humans in the workplace. Smart revolution considers the implications commercially, socially and politically.
Authorities have engaged in ever-greater policy intervention and regulation to shore up economic growth. We believe state intervention has increased misallocation of capital, caused volatility in markets and inflated asset prices and we think that calls for a stock-specific approach.
Cheap money has caused rapid growth in a sector already supported by deregulation. Financialisation investigates the implications of finance dominating economic activity, instead of serving it.
The investment landscape looks challenging. We think policies being pursued may be making economies and markets more fragile. So what should you do as an investor? One solution could be our Real Return strategy.
At the core, the emphasis is on traditional assets to generate capital growth and drive long-term returns.
Then there is an outer layer stabilising assets and hedging positions to try to counteract risks and dampen volatility.
In the core, might be equities, infrastructure and renewables.
In the outer layer we use a diverse range of instruments, including commodities, bonds, simple derivative strategies and currencies.
We alter the proportions of the core and outer layer according to our evolving view on the investment landscape.
We think theres a key advantage to active management. We can seek out returns in rising markets and try to minimise the downfall in falling markets.
Its composition is guided by the perspective of our global investment themes. They are our interpretation of the forces driving long-term change in the world.
Our Real Return strategy takes a simple, transparent approach to try to deliver, solid, stable returns for our clients.Investment team
Our Real Return strategy is managed by an experienced team with a wide range of backgrounds. Our global sector analysts and investment managers are located on a single floor in London, which helps to ensure that the investment process is flexible and opportunistic. Guided by our global investment themes, the team works together to identify opportunities and risks through research and debate.
Portfolio manager, multi-asset and Real Return teams
Member of the Real Return team and Head of Defined Contribution
The strategy aims to deliver a minimum return of cash (one-month sterling LIBOR) +4% per annum over 5 years before fees. In doing so, the strategy aims to achieve a positive return on a rolling 3-year basis. However, a positive return is not guaranteed and a capital loss may occur.
Expected to be between that of bonds and equities over the long term
Performance and commentary for the last quarter.
More detail on the strategys investment approach.
We consider the role of absolute-return strategies in investors portfolios.
Modern Monetary Theory is gaining traction among policymakers, but what are the possible consequences for investors and markets?
Gold can be hard to decipher as an investment. How should you go about understanding this tricky commodity?
How an ESG approach to investment could help to protect capital and reduce risk for bond investors.
Your capital may be at risk. The value of investments and the income from them can fall as well as rise and investors may not get back the original amount invested.
The performance aim is not a guarantee, may not be achieved and a capital loss may occur. Strategies which have a higher performance aim generally take more risk to achieve this and so have a greater potential for the returns to be significantly different than expected.
This strategy invests in international markets which means it is exposed to changes in currency rates which could affect the value of the strategy.
The strategy will use derivatives to generate returns as well as to reduce costs and/or the overall risk of the strategy. Using derivatives can involve a higher level of risk. A small movement in the price of an underlying investment may result in a disproportionately large movement in the price of the derivative investment.
Investments in bonds are affected by interest rates and inflation trends which may affect the value of the strategy.
The strategy holds bonds with a low credit rating that have a greater risk of default. These investments may affect the value of the strategy.
The strategy may invest in emerging markets. These markets have additional risks due to less developed market practices.
The strategy may invest in investments that are not traded regularly and are therefore subject to greater fluctuations in price.
This is a financial promotion. Issued in the UK by Newton Investment Management Limited, The Bank of New York Mellon Centre, 160 Queen Victoria Street, London, EC4V 4LA. Registered in England No. 01371973. Newton Investment Management is authorised and regulated by the Financial Conduct Authority. The opinions expressed in this document are those of Newton and should not be construed as investment advice. This document is for UK professional investors only. Past performance is not a guide to future performance. Your capital may be at risk. The value of investments and the income from them can fall as well as rise and investors may not get back the original amount invested.