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BNYM Newton Dynamic Value Strategy

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Overview

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)

- As of 

PE RATIO
(1-YEAR FORWARD)

15.71  As of 03/31/24

PB RATIO
(1-YEAR FORWARD)

2.35  As of 03/31/24

Return on
Equity (ROE)

14.21% As of 03/31/24

Median
Market Cap
(billions)

$57,884.28  As of 03/31/24

Weighted AVG.
Market Cap
(billions)

$4.48  As of 03/31/24

EPS Growth
(5-Years)

16.45% As of 03/31/24

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.

Investment Firm

Newton Investment Management
Year Founded: 1978
Newton Investment Management Logo

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
We believe investor skepticism creates alpha opportunities, and the management team looks to act on these insights through fundamental analysis and the disciplined implementation of our nimble process.

  • 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

    Brian C. Ferguson

    Years at the firm: 26

    Years managing strategy: 20

    Years in industry: 33

  • John C. Bailer

    John C. Bailer, CFA

    Years at the firm: 31

    Years managing strategy: 19

    Years in industry: 31

  • Keith Howell

    Keith Howell

    Years at the firm: 17

    Years managing strategy: 2

    Years in industry: 19

Performance

Performance

  • Display Net data
  • Display Gross data
  • Monthly
  • Quarterly
As of 03/31/24
Annualized Returns
Inception Date YTD 1YR 3YR 5YR 10YR SINCE INCEPTION
US Dynamic Large Cap Value Composite 01/01/94 9.78 8.95 23.95 20.23 15.32 11.86 16.12 12.64 12.04 8.68 11.64 8.30
US Dynamic Large Cap Value Composite
Russell 1000® Value Index N/A 8.99 8.99 20.27 20.27 8.11 8.11 10.32 10.32 9.01 9.01 -
As of 03/31/24
Annualized Returns
Inception Date YTD 1YR 3YR 5YR 10YR SINCE INCEPTION
US Dynamic Large Cap Value Composite 01/01/94 9.78 8.95 23.95 20.23 15.32 11.86 16.12 12.64 12.04 8.68 11.64 8.30
US Dynamic Large Cap Value Composite -
Russell 1000® Value Index N/A 8.99 8.99 20.27 20.27 8.11 8.11 10.32 10.32 9.01 9.01

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.

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 Asset Allocation

    Portfolio

    As of 03/31/24
    Composition Allocation
    JPMORGAN CHASE 4.49
    BERKSHIRE HATHAWAY INC CLASS B 3.44
    DANAHER CORP 2.95
    CONOCOPHILLIPS 2.69
    GOLDMAN SACHS GROUP INC 2.63
    MEDTRONIC PLC 2.43
    BECTON DICKINSON 2.35
    PHILLIPS 2.27
    CME GROUP INC CLASS A 2.17
    CISCO SYSTEMS INC 2.13

    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.

        Risk Stats

        Main Risks

        All investments involve risk, including loss of principal. Equities are generally subject to market, market sector, market liquidity, issuer and investment style risks, among other factors, to varying degrees.

        Risk Metrics

        As of  02/29/24  3-Year trailing Standard Deviation Alpha Beta R-Squared Sharpe Ratio Tracking Error Information Ratio
        BNYM Newton Dynamic Value Strategy
        		18.51 -1.46 1.04 99.18 0.49 1.85 -0.69

        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

        Literature

        PRODUCT MATERIALS

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        BNYM Newton Dynamic Value Strategy - Investment Report Download
        BNYM Newton Dynamic Value Strategy - Presentation Download
        BNYM Newton Dynamic Value Strategy - Top 10 Rationale Download
        BNYM Newton Dynamic Value Strategy - Commentary Download
        GIPS Report

        GIPS Report

        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