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BNYM Newton Large Cap Growth Strategy

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Overview

Why Invest in this Strategy?

  • Strategy looks to invest in large-capitalization companies in the U.S that possess high potential earnings growth
  • Management team employs a diversified approach to identifying investment opportunities, with no single definition of growth
  • Long-tenured analysts help drive stock selection within their areas of expertise, resulting in a high conviction portfolio
  • Risk is managed at the portfolio level, with a sell discipline that reviews price targets, purchase thesis, stock ratings and industry performance reviews

Strategy Assets
(Millions)

$3,281  As of 12/31/22

PE RATIO
(1-YEAR FORWARD)

26.23  As of 12/31/22

PB RATIO
(1-YEAR FORWARD)

4.72  As of 12/31/22

Return on
Equity (ROE)

16.77% As of 12/31/22

Median
Market Cap
(billions)

- As of 

Weighted AVG.
Market Cap
(billions)

- As of 

EPS Growth
(5-Years)

24.91% As of 12/31/22

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 that successful growth investing is best achieved through a process that optimizes information, ensures decision-making freedom, and requires accountability within a framework of oversight and risk management.

  • Research

    Investments are selected using a process between the portfolio managers and the global research analysts, with each analyst responsible for generating investment ideas across their areas of expertise.

  • Challenge

    Investment ideas can emanate from both the portfolio manager and global analyst teams.

  • Leaders

    The strategy applies a diversified approach to growth investing. The team does not apply a single definition of growth at the portfolio level: rather, analysts define growth at the industry level.

  • Portfolio Construction

    The fund invests in those companies in which the portfolio managers have the highest degree of conviction or have identified a strong near-term catalyst for earnings growth or share price appreciation.

  • Risk Management

    Risk is managed at the portfolio level, which includes both factor analysis and stock-specific risk analysis.

Portfolio Managers

  • John Porter

    John Porter

    Years at the firm: 6

    Years managing strategy: 1

    Years in industry: 28

  • Miki Behr

    Miki Behr

    Years at the firm: 15

    Years managing strategy: 1

    Years in industry: 23

Performance

Performance

  • Display Net data
  • Display Gross data
  • Monthly
  • Quarterly
As of 02/28/23
Annualized Returns
Inception Date YTD 1YR 3YR 5YR 10YR SINCE INCEPTION
US Large Cap Growth Equity Composite 07/01/05 10.76 10.20 -15.80 -18.33 10.50 7.18 10.58 7.26 12.94 9.55 10.76 7.44
US Large Cap Growth Equity Composite
Russell 1000® Growth Index N/A 7.05 7.05 -13.34 -13.34 12.06 12.06 11.54 11.54 14.26 14.26 -
As of 12/31/22
Annualized Returns
Inception Date YTD 1YR 3YR 5YR 10YR SINCE INCEPTION
US Large Cap Growth Equity Composite 07/01/05 -33.26 -35.26 -33.26 -35.26 5.67 2.50 9.33 6.05 12.37 9.00 10.22 6.92
US Large Cap Growth Equity Composite -
Russell 1000® Growth Index N/A 7.05 7.05 -13.34 -13.34 12.06 12.06 11.54 11.54 14.26 14.26

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.

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. 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 Large Cap Growth Equity Composite (“Institutional Composite”) is being shown as representative of the BNYM Newton Large Cap Growth 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 basis, 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 certain transaction expenses that are embedded in the Institutional Composite's gross of fees performance and the 3% model wrap fee.

Returns for less than one year are not annualized.

The composite’s benchmark is the Russell 1000® Growth Index. The Russell 1000® Growth Index measures the performance of the large-cap growth segment of the U.S. equity market. 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: July 1, 2005

    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.

    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. 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 Large Cap Growth Equity Composite (“Institutional Composite”) is being shown as representative of the BNYM Newton Large Cap Growth 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 basis, 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 certain transaction expenses that are embedded in the Institutional Composite's gross of fees performance and the 3% model wrap fee.

    Returns for less than one year are not annualized.

    The composite’s benchmark is the Russell 1000® Growth Index. The Russell 1000® Growth Index measures the performance of the large-cap growth segment of the U.S. equity market. Investors cannot invest directly in any index.

    Download Most Recent GIPS Performance Report for all GIPS Disclosures.

    Portfolio Asset Allocation

    Portfolio

    As of 01/31/23
    Composition Allocation
    Apple Inc. 9.10
    Microsoft Corporation 7.38
    Amazon.com, Inc. 6.90
    Alphabet Inc. Class C 4.98
    NVIDIA Corporation 3.91
    Eli Lilly and Company 3.41
    Tesla Inc 3.14
    Shopify, Inc. Class A 2.41
    EQT Corporation 2.34
    Trane Technologies plc 2.32

    Asset Allocation

        Source: Newton. Based on a representative model account and subject to change; actual 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  01/31/23  3-Year trailing Standard Deviation Alpha Beta R-Squared Sharpe Ratio Tracking Error Information Ratio
        BNYM Newton Large Cap Growth Strategy
        		26.55 -1.87 1.16 88.01 0.40 9.85 -0.14

        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

        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-287705-2022-07-22