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BNYM Newton Global Equity Income ADR Strategy

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Overview

Why Invest in this Strategy?

  • A high-conviction global strategy with an investment approach which aims to capture and enhance the most statistically significant sources of long-term real returns – earnings growth and dividend growth
  • Invests in both U.S. and non-U.S. stocks
  • Focused on higher quality companies with above average dividend yields and sustainable cash-flow streams
  • Deep investment team across regions, sectors, industries and investment themes

Strategy Assets
(Millions)

- As of 

PE RATIO
(1-YEAR FORWARD)

12.62  As of 08/31/23

PB RATIO
(1-YEAR FORWARD)

2.08  As of 08/31/23

Return on
Equity (ROE)

17.01% As of 08/31/23

Median
Market Cap
(billions)

$0.00  As of 08/31/23

Weighted AVG.
Market Cap
(billions)

$98.46  As of 08/31/23

EPS Growth
(5-Years)

6.56% As of 08/31/23

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 a focus on sustainable dividends is a primary driver of stock performance, reflecting the power evidence that dividends, and the reinvestment of dividends, represent one of the dominant sources of long-term real returns in markets across the world.

  • Focus on Dividends

    Our strict yield discipline seeks to ensure that every stock, and the portfolio as a whole, compounds at a higher yield than that of the market.

  • Sustainability of Dividend Payments

    We look to enhance this tailwind by seeking companies with underlying cash flows that we believe are sustainable and have the ability to suffer without threatening the dividend.

  • Valuation Overlay

    We aim to enhance this further still by capturing a valuation margin of safety.

Portfolio Managers

  • Jon Bell

    Jon Bell

    Years at the firm: 28

    Years managing strategy: 3

    Years in industry: 28

  • Robert Hay

    Robert Hay

    Years at the firm: 23

    Years managing strategy: 3

    Years in industry: 23

  • Paul Flood

    Paul Flood

    Years at the firm: 19

    Years managing strategy: 3

    Years in industry: 19

Performance

Performance

  • Display Net data
  • Display Gross data
  • Monthly
  • Quarterly
As of 07/31/23
Annualized Returns
Inception Date YTD 1YR 3YR 5YR 10YR SINCE INCEPTION
BNYM Newton Global Equity Income ADR Strategy 05/01/17 12.12 11.14 15.89 14.16 13.98 11.60 9.56 6.87 - - 9.95 7.13
- - - - - - - - - - - -
MSCI World Index N/A 18.95 18.95 13.48 13.48 11.67 11.67 9.12 9.12 9.30 9.30 -
As of 06/30/23
Annualized Returns
Inception Date YTD 1YR 3YR 5YR 10YR SINCE INCEPTION
BNYM Newton Global Equity Income ADR Strategy 05/01/17 8.92 8.10 16.83 15.08 14.05 11.62 9.74 7.02 - - 9.57 6.75
- - - - - - - - - - -
MSCI World Index N/A

Sources: 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.

The performance shown represents the performance of the BNYM Newton Global Equity Income ADR Composite.

Net returns assume the reinvestment of dividends. Through September 30, 2021, net of fees performance is shown using a fee of 3%, which is the historical industry standard highest fee in the wrap account industry. As of October 1, 2021, net of fees performance is shown using a fee of 1.50%, which is the annual advisory fee for the strategy. “Pure” gross-of-fees returns are supplemental to net-of-fees returns and do not reflect the deduction of wrap fee portfolio program fees which would reduce returns. The information shown is supplemental to a fully compliant GIPS presentation that can be found at the end of this presentation along with other important disclosures. Returns for less than one year are not annualized.

The benchmark for the strategy is the MSCI World Index. The Index captures large and mid-cap representation across 23 Developed Markets (DM) countries. With 1,513 constituents, the index covers approximately 85% of the free float-adjusted market capitalization in each country. Index returns are calculated as net return indicating that this series approximates the minimum possible dividend reinvestment. The dividend is reinvested after deduction of withholding tax, applying the rate applicable to non-resident individuals who do not benefit from double taxation treaties. MSCI uses withholding tax rates applicable to Luxembourg holding companies. While the MSCI World Index does not contain any ADRs, the BNYM Newton Global Equity Income ADR wrap fee portfolios are primarily composed of ADRs along with U.S. equities and DTCC-eligible securities of global companies. An investor 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

    Strategy Inception Date: May 1, 2017

    Sources: 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.

    The performance shown represents the performance of the BNYM Newton Global Equity Income ADR Composite.

    Net returns assume the reinvestment of dividends. Through September 30, 2021, net of fees performance is shown using a fee of 3%, which is the historical industry standard highest fee in the wrap account industry. As of October 1, 2021, net of fees performance is shown using a fee of 1.50%, which is the annual advisory fee for the strategy. “Pure” gross-of-fees returns are supplemental to net-of-fees returns and do not reflect the deduction of wrap fee portfolio program fees which would reduce returns. The information shown is supplemental to a fully compliant GIPS presentation that can be found at the end of this presentation along with other important disclosures. Returns for less than one year are not annualized.

    The benchmark for the strategy is the MSCI World Index. The Index captures large and mid-cap representation across 23 Developed Markets (DM) countries. With 1,513 constituents, the index covers approximately 85% of the free float-adjusted market capitalization in each country. Index returns are calculated as net return indicating that this series approximates the minimum possible dividend reinvestment. The dividend is reinvested after deduction of withholding tax, applying the rate applicable to non-resident individuals who do not benefit from double taxation treaties. MSCI uses withholding tax rates applicable to Luxembourg holding companies. While the MSCI World Index does not contain any ADRs, the BNYM Newton Global Equity Income ADR wrap fee portfolios are primarily composed of ADRs along with U.S. equities and DTCC-eligible securities of global companies. An investor cannot invest directly in any index.

    Download Most Recent GIPS Performance Report for all GIPS Disclosures.

    Portfolio Asset Allocation

    Portfolio

    As of 07/31/23
    Composition Allocation
    SANOFI ADR REPRESENTING SA 3.52
    ROCHE HOLDINGS ADR AG 3.27
    CME GROUP INC CLASS A 3.11
    CISCO SYSTEMS INC 3.10
    MEDTRONIC PLC 2.89
    ABBVIE INC 2.68
    PEPSICO INC 2.60
    MUENCHENER RE GROUP ADR AG 2.51
    EXELON CORP 2.47
    BAYER ADR AG 2.41

    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 subject to market, market sector, market liquidity, issuer, and investment style risks to varying degrees. Small and midsized company stocks tend to be more volatile and less liquid than larger company stocks as these companies are less established and have more volatile earnings histories. Investing in foreign denominated and/or domiciled securities involves special risks, including changes in currency exchange rates, political, economic, and social instability, limited company information, differing auditing and legal standards, and less market liquidity. These risks generally are greater with emerging market countries. American Depositary Receipts (ADRs) do not eliminate the currency and economic risks for the underlying shares in another country. ADRs are subject to many of the same risks as the foreign securities to which they relate.

        Risk Metrics

        As of  07/31/23  3-Year trailing Standard Deviation Alpha Beta R-Squared Sharpe Ratio Tracking Error Information Ratio
        BNYM Newton Global Equity Income ADR Strategy
        		16.24 4.41 0.86 81.75 0.78 7.35 0.48

        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 MSCI ACWI 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 Global Equity Income ADR Strategy - Investment Report Download
        BNYM Newton Global Equity Income ADR 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-287596-2022-07-22