Investment Objective
The Fund aims to achieve an income yield which, after all fees and expenses, is equal to or greater than 130% of that generated by a composite of the MSCI AC World Index (GBP) (60%) and the ICE BoAML Global Broad Market Hedged Index (GBP) (40%) while offering the potential for some capital growth over a five-year rolling period.
In seeking to meet the income target, Newton follows a four-stage investment process, underpinned by the pioneering use of a global thematic approach to investment analysis. Calling on the experience of a 74-strong team of investment professionals, Newton begins by identifying the key economic, political, demographic and social trends that are likely to dictate the direction and magnitude of investment returns across global asset classes. Such themes may include the increasing influence of China on the global economy, the rising demand for health care as populations age or the burden of debt under which many economies are struggling.
Once the key global themes have been identified, their implications for asset prices are carefully considered. Understanding of the drivers, dynamics and consequences of each scenario shapes Newton’s assessment of valuations, expected growth rates, the sustainability of earnings, the evolution of competition and the significant risks to which asset classes, industries and individual investment opportunities are exposed.
The thematically driven analysis results in lists of recommended investment opportunities, upon which further fundamental analysis is carried out. The managers seek companies with strong balance sheets and dependable, sustainable cash flow generation. The fund is able to invest in both the bonds and the equity of any given company - the fundamental analysis determines the appropriate portion of the capital structure in which to invest. The opportunities deemed most attractive on a risk-adjusted basis are subsequently aggregated into three model portfolios; one multi-asset portfolio, one equity income portfolio and one fixed income portfolio.
The final stage of the investment process combines the three model portfolios into a single, flexible portfolio. This final portfolio is considered holistically, ensuring there is sufficient diversification both of risks and of sources of income. The ultimate aim of the portfolio is to deliver a stable, sustainable and attractive income level. The predictability of this income level is central to the proposition; by securing a sustainable income, the managers are able to accept a degree of volatility in the value of capital, and are therefore able to target capital growth in addition to income.
Capital At Risk
Issued by Omnis Investments Limited. This content is for informational purposes only and is not investment advice. Omnis is unable to provide investment advice. Every effort is made to ensure the accuracy of the information but no assurance or warranties are given. Past performance should not be considered as a guide to future performance. The value of investments and any income from them may go down as well as up and cannot be guaranteed. Prospective investors are reminded to read the fund's Key Investor Information Document and Prospectus prior to investment. These are available free of charge from Omnis Investments Limited. Omnis Investments Limited is authorised and regulated by the Financial Conduct Authority.
