Omnis Multi-Asset Income Fund

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.

Key Fund Facts

A leader in the multi-asset space

Newton manages over £21bn in multi-asset strategies, pioneering a global thematic approach to investment. The fund will benefit from the depth and breadth of Newton’s dedicated multi-asset investment research and strategy teams.

A truly flexible approach

The fund is able to invest across a wide range of geographies and asset classes in order to access the most attractive global investment opportunities and ensure that the generation of income does not come at the expense of capital preservation and growth.

Sustainable and relevant income

To prevailing economic and market conditions. The income target is set at 130% of the income generated by a benchmark which consists of 60% global equities, 40% global bonds.

Introducing the Investment Manager

Paul Flood is a fund manager with Newton, one of BNY Mellon Investment Management’s investment specialist firms. He is the lead manager of the Newton Multi-Asset Diversified Return Fund, and provides leadership and analysis on asset allocation, alternatives and derivatives for the wider house.

Paul is chairman of the derivatives process group, and a member of the asset class strategy group. He joined Newton in 2006, prior to which he worked at Mellon Investment Funds Europe as a unit trust dealer. Paul attended St Andrews University and is a CFA Charterholder.

BNY Mellon

Investment Policy

The investment policy of the Fund is to gain exposure through a flexible asset allocation to a broad diversified range of asset classes including, equities, fixed interest securities, currencies, cash, near cash and deposits, warrants and approved money market instruments. Exposure to these asset classes is expected to be mainly achieved through investment in a combination of transferable securities, collective investment schemes, deposits and derivatives. The Fund may gain exposure to the property or commodities markets through investment in eligible asset classes, such as exchange listed securities and/or collective investment schemes.

The Fund will not have any restrictions on the proportion of the Fund allocated to any of these asset classes. The Fund may invest in any geographic or economic sectors of the world.

Derivatives may be used for investment purposes as well as for efficient portfolio management. It is not intended that the use of derivatives in this way will raise the risk profile of the Fund.

Omnis Investments

Omnis Multi-Asset Income Fund

Investment Manager

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