PRNewswire
NEW YORK
(NYSE:BK)
Feb 10, 2009
Newton Exempt Fund and Newton Global Balanced Fund Outperform CAPS Balanced Median over 1, 3, 5 and 10 years*
Newton Absolute Intrepid Fund delivers +10.3%pa against one month Libor of +5.3% over last 3 years
LONDON, 10 February 2009 — Newton Investment Management Limited's single portfolio approach to multi-asset investing positioned its funds ahead of the competition in 2008, according to statistics published last week.
The Newton Exempt Fund was positioned first, and the Newton Global Balanced Fund second, in the Balanced sector of BNY Mellon Asset Servicing's latest quarterly CAPS survey over one, three and five years. Both Funds have also delivered consistent above median performance returns over 10 years*:
| 1 year | 3 year | 5 year | 10 year | |
| Newton Exempt Fund | -3.0% | +7.6% | +11.5% | +6.7% |
| Newton Global Balanced Fund | -3.2% | +7.4% | +11.3% | +6.9% |
| Balanced Sector Median | -19.8% | -1.0% | +5.6% | +3.2% |
In addition, over three, five and ten years, these two funds have not only outperformed the median, but also key equity, bond and cash indices**:
| 1 year | 3 year | 5 year | 10 year | |
| FTSE All Share Index | -29.9% | -4.8% | +3.5% | +1.2% |
| FTSE W World Index | -18.3% | -1.7% | +5.0% | +1.8% |
| FTSE Gov't Over 15yr Index | +13.6% | +5.3% | +7.0% | +5.2% |
| ML Sterling Non-Gilts 10+Yrs Index | -6.2% | -2.3% | +2.2% | +4.3% |
| One month Libor | +5.4% | +5.3% | +5.0% | +4.9% |
Newton's holistic approach of retaining perspective and focusing ideas through the use of themes has generated strong returns for investors. The firm underlines the fact that multi-asset investment management can be tailored to meet a range of different objectives, evidenced by the development of single portfolio multi-asset funds with unconstrained, targeted orientations such as the Newton Absolute Intrepid Fund. This Fund invests without limitations in 'conventional' asset classes but uses downside protection tools and income-generating derivatives to enhance returns. This strategy, a pure application of Newton's global multi-asset approach, has generated a three year annualized return of +10.3%pa and over 2008 rose by +6.1%, gross of fees, despite one of the worst bear markets in living memory.
Jeff Munroe, chief investment officer, Newton Investment Management, comments: "Newton funds are different from the bulk of the competition. The flexibility and perspective offered by the single portfolio approach to investment has been key in a time of such market turmoil.
Iain Stewart, investment manager, added: "We believe that economic downdraft, following in the wake of the credit crisis, represents a major inflection point rather than a temporary cyclical phenomenon, and have therefore positioned our multi-asset strategies cautiously over the last few years. This positioning, coupled with a focus on stable, cash generative equity sectors (like pharmaceuticals and telecommunications), and an exposure to international government bonds and commodities like gold, provided strong positive returns in the final quarter of the year."
Jeff Munroe concludes: "Newton strongly believes that the 'multi-asset' approach is as valid today as it was when the company was launched. Indeed, in a challenging environment where the only certainty seems to be combined volatility, the flexibility to build single portfolios from a range of asset classes is extremely valuable. Equally our ability to retain perspective through seeking global investment opportunities is a significant competitive advantage. We see multi-asset strategies as highly relevant for both large and small DB and DC schemes."
Newton Investment Management Limited is a London-based global asset management subsidiary of The Bank of New York Mellon Corporation and part of BNY Mellon Asset Management. With assets under management of more than £35 billion, the company provides a broad range of award-winning investment products and services to individuals, pension funds, charities and corporations. News and other information about Newton is available at www.newton.co.uk.
The Bank of New York Mellon Corporation is a global financial services company focused on helping clients manage and service their financial assets, operating in 34 countries and serving more than 100 markets. The company is a leading provider of financial services for institutions, corporations and high-net-worth individuals, providing superior asset management and wealth management, asset servicing, issuer services, clearing services and treasury services through a worldwide client-focused team. It has $20.2 trillion in assets under custody and administration, $928 billion in assets under management and services more than $11 trillion in outstanding debt. Additional information is available at www.bnymellon.com.
* Source BNY Mellon Asset Servicing CAPS survey, gross of fees, as at 31 December 2008. **Source BNY Mellon Asset Servicing as at 31 December 2008. All other information source BNY Mellon Asset Management International Limited as at 31 December 2008. This press release is qualified for issuance in the UK only and is for information purposes only. It does not constitute an offer or solicitation of securities or investment services or an endorsement thereof in any jurisdiction or in any circumstance in which such offer or solicitation is unlawful or not authorised. This press release is issued by BNY Mellon Asset Management International Limited to members of the financial press and media and the information contained herein should not be construed as investment advice. Past performance is not a guide to future performance. Registered office: The Bank of New York Mellon Centre, 160 Queen Victoria Street, London, EC4V 4LA. Registered in England no. 1118580. Authorised and regulated by the Financial Services Authority
A Bank of New York Mellon Company.