Global Real Return strategy
Global Real Return is an actively managed multi-asset strategy which takes an unconstrained approach to seeking attractive long-term absolute returns. It aims to deliver these returns with a level of volatility that is lower than that implied by growth assets and targeted between bonds and equities.
The strategy has a strong emphasis on capital preservation and has the freedom to invest in both conventional and alternative assets across the global asset spectrum. The strategy comprises a return-seeking asset core, complemented by a periphery of other assets to hedge areas of perceived risk, thereby dampening volatility. The strategy does not borrow in order to leverage returns, or sell stocks 'short'.
Our guiding principle at Newton has always been to enhance the real wealth of our clients. Global Real Return is an evolution of our long-standing global multi-asset approach, harnessing the perspective afforded by our investment process with an unconstrained application that takes a more opportunistic stance to managing risk and return. Target return investing is not a new concept for Newton: we have an established track record in the wage-inflation-targeted Newton Exempt Strategy, the second-longest running pooled multi-asset strategy in the UK pensions industry.
The Global Real Return strategy was launched on July 1 2009 and has an absolute return target of 1-month LIBOR +4% per annum over rolling five-year periods. The strategy has appeal for a wide range of clients, from defined benefit and defined contribution pension funds, to charities, endowment funds and individual investors. In an uncertain economic environment, we believe that Real Return's flexibility and focus are valuable attributes in generating returns for clients.
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Global Real Return strategy
