BNYM Newton Dynamic Value Strategy
Why Invest in this Strategy?
- Portfolio management team employs an active approach, emphasizing stock selection and seeks to achieve capital appreciation
- Investment approach is style-pure, solely focused on U.S. large cap alpha generation within the US equity universe
- Strategy looks to achieve capital appreciation and targets attractively valued companies with a catalyst for business improvement
- Long-tenured team of research analysts and portfolio managers, working together across regions and sectors, helps to ensure the investment process is highly flexible
Strategy Assets
(Millions)
PE RATIO
(1-YEAR FORWARD)
PB RATIO
(1-YEAR FORWARD)
Return on
Equity (ROE)
Median
Market Cap
(billions)
Weighted AVG.
Market Cap
(billions)
EPS Growth
(5-Years)
Strategy Assets captures all assets the investment manager manages in that discipline for all client types.
Price/Earnings Ratio - Price-to-earnings (P/E) is the ratio of the market price of a firm’s common stock to its current (or predicted) earnings per share. Price/Book Ratio - Price-to-book value (P/B) is a ratio used to compare a stock's market value with its book value. It is calculated by dividing the current closing price of the stock by the latest quarter’s book value (assets minus liabilities).
Price/Book Ratio - Price-to-book value (P/B) is a ratio used to compare a stock's market value with its book value. It is calculated by dividing the current closing price of the stock by the latest quarter’s book value (assets minus liabilities).
Return on Equity is the percentage a company earns on its total equity for the time period listed. The calculation is net income divided by end-of-year net worth. The resulting figure is multiplied by 100.
Median Market Cap is the midpoint of market capitalization (market price multiplied by the number of shares outstanding) of the stocks in a portfolio. Half the stocks in the portfolio will have higher market capitalizations; half will have lower.
Weighted Avg Market Cap - Weighted average market cap is the average market capitalization of corporations in a fund or index, weighted by the percentage of the holding in the fund or index.
Earnings per share (EPS) growth is a figure that represents the annualized rate of net-income-per-share growth over the trailing five-year period for the stocks held by a portfolio.
Newton Investment Management
With offices in London, New York, Boston and San Francisco, Newton provides discretionary and non-discretionary investment advice to institutional clients, including U.S. and global pension funds, sovereign wealth funds, central banks, endowments, foundations, insurance companies, registered mutual funds, other pooled investment vehicles and other institutions, and, via BNY Mellon, to individuals.
Investment Philosophy
Research
The portfolio management team is singularly focused on U.S. large-cap investing with a deep and experienced research staff.
Identify Catalysts
Value-based approach aims to identify catalysts that can drive a stock’s price due to business improvement.
Portfolio Construction
The team looks to identify stocks at the intersection of value, fundamentals, and business improvement.
Risk Management
Risk management process employs quantitative and fundamental analysis, price targets and individual case review.
Portfolio Managers
-
Brian C. Ferguson
Years at the firm: 25
Years managing strategy: 3
Years in industry: 32
-
Keith Howell
Years at the firm: 16
Years managing strategy: 1
Years in industry: 17
Performance
- Display Net data
- Display Gross data
- Monthly
- Quarterly
|
Annualized Returns
|
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|---|---|---|---|---|---|---|---|
| Inception Date | YTD | 1YR | 3YR | 5YR | 10YR | SINCE INCEPTION | |
| US Dynamic Large Cap Value Composite | 01/01/94 | 0.39 | 1.68 | 15.71 | 7.74 | 9.37 | 7.95 |
| Russell 1000® Value Index | N/A | 1.47 | -2.81 | 10.96 | 7.22 | 9.60 | - |
|
Annualized Returns
|
|||||||
|---|---|---|---|---|---|---|---|
| Inception Date | YTD | 1YR | 3YR | 5YR | 10YR | SINCE INCEPTION | |
| US Dynamic Large Cap Value Composite | 01/01/94 | 0.65 | 0.65 | 9.99 | 7.64 | 10.15 | 7.98 |
| Russell 1000® Value Index | N/A | 1.47 | -2.81 | 10.96 | 7.22 | 9.60 | |
Calendar Year Performance
- Display Net data
- Display Gross data
Composite Inception Date: January 1, 1994
Sources: Newton, BNYMSC and FactSet.
Past performance is no guarantee of future results. Current performance may be lower or higher than the performance quoted. No investment strategy or risk management technique can guarantee returns or eliminate risk in any market environment.
Performance information is based on the Composite.
Net returns assume the reinvestment of dividends, and are net of a 3.0% annual account advisory fee, which is the historical industry standard in the wrap account industry. Gross returns assume the reinvestment of dividends, but do not reflect the deduction of any account advisory fees or other expenses that an investor would pay, which would reduce returns.
The US Dynamic Large Cap Value Composite (“Institutional Composite”) is being shown as representative of the BNYM Newton Dynamic Value Strategy (“SMA Strategy”). The Institutional Composite is managed by the same investment team using a substantially similar investment process that is used for the SMA Strategy. The SMA Strategy is provided on a non-discretionary, model-only basis. Although BNY Mellon Securities Corporation, the SMA manager of record, believes that the Institutional Composite is representative of the SMA Strategy, there may be material differences between the Institutional Composite and the SMA Strategy. Net of fee performance is shown using a fee of 3%, which is the historical industry standard in the wrap account industry, as additional information. Please note that this figure may double count transaction expenses which are embedded in the Institutional Composite's gross of fees performance and the model 3% wrap fee.
The benchmark for the SMA Strategy and Institutional Composite is the Russell 1000® Value Index.
The Russell 1000® Value Index measures the performance of the large-cap value segment of the U.S. equity universe. It includes those Russell 1000 companies that are considered more value-oriented relative to the overall market as defined by Russell's leading style methodology. The Russell 1000® Value Index is constructed to provide a comprehensive and unbiased barometer for the large-cap value segment. The index is completely reconstituted annually to ensure new and growing equities are included and that the represented companies continue to reflect value characteristics. Investors cannot invest directly in any index.
Download Most Recent GIPS Performance Report for all GIPS Disclosures.
Portfolio
| Composition | Allocation |
|---|---|
| Exxon Mobil Corporation | 4.39 |
| JPMorgan Chase & Co. | 4.29 |
| Berkshire Hathaway Inc. Class B | 3.94 |
| Freeport-McMoRan, Inc. | 2.35 |
| Goldman Sachs Group, Inc. | 2.27 |
| Medtronic Plc | 2.27 |
| Becton, Dickinson and Company | 2.23 |
| Cisco Systems, Inc. | 2.17 |
| ConocoPhillips | 1.99 |
| CME Group Inc. Class A | 1.97 |
Asset Allocation
Main Risks
Risk Metrics
| As of 01/31/23 3-Year trailing | Standard Deviation | Alpha | Beta | R-Squared | Sharpe Ratio | Tracking Error | Information Ratio |
|---|---|---|---|---|---|---|---|
|
BNYM Newton Dynamic Value Strategy
|
22.05 | -1.67 | 1.03 | 99.23 | 0.43 | 2.02 | -0.82 |
All risk metrics are provided by Morningstar. The index used in the calculations are determined by Morningstar which may not be the strategy’s primary benchmark. The index Morningstar used for this analysis is S&P 500® Index.
Investors should carefully review and consider potential risks before investing. Please see Main Risks section above for additional information regarding investment risks.
Separately Managed Accounts (SMAs) are offered by BNY Mellon Securities Corporation (BNYMSC) in its capacity as a registered investment adviser.
Newton Investment Management North America, LLC (NIMNA) is registered with the U.S. Securities and Exchange Commission (SEC) as an investment adviser. NIMNA and BNY Mellon Securities Corporation are subsidiaries of BNY Mellon.
This information has been distributed for informational purposes only and should not be considered as investment advice or are commendation of any particular investment, strategy, investment manager or account arrangement and should not serve as a primary basis for investment decisions. Information displayed has been obtained from sources believed to be reliable, but not guaranteed. Please consult a legal, tax or financial professional to determine whether an investment product or service is appropriate for a particular situation. No part of this information may be reproduced in any form, or referred to in any other publication, without express written permission.
MARK-287667-2022-07-22
