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.
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.
-
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: 26
Years managing strategy: 20
Years in industry: 32
-
Keith Howell
Years at the firm: 17
Years managing strategy: 2
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 | 0.53 | 3.02 | 16.38 | 8.58 | 7.63 | 7.77 |
Russell 1000® Value Index | N/A | -1.80 | 0.13 | 10.21 | 6.60 | 7.60 | - |
Annualized Returns
|
|||||||
---|---|---|---|---|---|---|---|
Inception Date | YTD | 1YR | 3YR | 5YR | 10YR | SINCE INCEPTION | |
US Dynamic Large Cap Value Composite | 01/01/94 | 2.94 | 17.95 | 17.44 | 7.50 | 8.29 | 7.88 |
Russell 1000® Value Index | N/A | -1.80 | 0.13 | 10.21 | 6.60 | 7.60 |
Calendar Year Performance
- Display Net data
- Display Gross data
Portfolio
Composition | Allocation |
---|---|
BERKSHIRE HATHAWAY INC CLASS B | 4.32 |
JPMORGAN CHASE | 4.00 |
CME GROUP INC CLASS A | 2.83 |
BECTON DICKINSON | 2.53 |
CONOCOPHILLIPS | 2.52 |
MEDTRONIC PLC | 2.45 |
DANAHER CORP | 2.39 |
OCCIDENTAL PETROLEUM CORP | 2.11 |
NORTHROP GRUMMAN CORP | 2.04 |
EQT CORP | 2.02 |
Asset Allocation
Source: Newton. Top 10 equity weights are based on a representative model account, exclusive of cash. Total model holdings are from the same representative model account, inclusive of cash. Individual accounts may vary.
Main Risks
Risk Metrics
As of 09/30/23 3-Year trailing | Standard Deviation | Alpha | Beta | R-Squared | Sharpe Ratio | Tracking Error | Information Ratio |
---|---|---|---|---|---|---|---|
BNYM Newton Dynamic Value Strategy
|
18.70 | -1.53 | 1.04 | 99.20 | 0.43 | 1.85 | -0.76 |
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.
Standard deviation - It is a statistical measure of the degree to which an individual portfolio return tends to vary from the mean, based on the entire population. The greater the degree of dispersion, the greater the degree of risk. In mutual funds, the standard deviation tells us how much the return on the fund is deviating from the expected normal returns.
Alpha - It is a measure of a security's or portfolio's excess return.
Beta - It is a measure of a security's or portfolio's volatility, or systematic risk.
R-Squared - It is a statistical measure that represents the percentage of a fund's or security’s movements that are explained by movements in a benchmark index.
Sharpe Ratio - It is a risk-adjusted measure that measures reward per unit of risk.
Tracking Error - is a measure of the volatility of excess returns relative to a benchmark.
Information Ratio - is a geometric measure of risk-adjusted performance. The Information Ratio is a version of the Sharpe Ratio, but unlike the Sharpe Ratio, the benchmark does not have to be the risk-free return.
Literature
PRODUCT MATERIALS
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BNYM Newton Dynamic Value Strategy - Presentation | Download | Share | ||
BNYM Newton Dynamic Value Strategy - Top 10 Rationale | Download | Share | ||
BNYM Newton Dynamic Value Strategy - Commentary | Download | Share |
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” and/or the “Newton Investment Management” brand refers to the following group of affiliated companies: Newton Investment Management Limited (NIM) and Newton Investment Management North America LLC (NIMNA). NIM is incorporated in the United Kingdom (Registered in England no. 1371973) and is authorized and regulated by the Financial Conduct Authority in the conduct of investment business. Both Newton firms are registered with the Securities and Exchange Commission (SEC) in the United States of America as an investment adviser under the Investment Advisers Act of 1940. Newton is a subsidiary of The Bank of New York Mellon Corporation. Newton’s investment advisory businesses are described in their Form ADVs, Part 1 and 2, which can be obtained from the SEC.gov website or obtained upon request.
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