Fact sheet: Newton Real Return

Rated Fund Information
Rated Funds Group
?Money Observer has arranged all its Rated Funds into easy to understand Rated Fund Groups, comprising funds and investment trusts.
MIXED ASSET - LOWER RISK
Sector
UT Targeted Absolute Return
Fund type
OEIC
Primary aim
GROWTH
Why Money Observer Rates Newton Real Return

Rated Fund 2013-2014, 2017. Aiming for a steady return in excess of cash

Newton Real Return was one of the first absolute return-oriented funds before the term became fashionable. Its stated aim is to achieve a positive return on a rolling three-year basis, and a minimum return of 4 per cent more than cash (defined as 1-Month GBP Libor) over five years before fees.

There is a health warning that positive returns are not guaranteed and a capital loss may occur. However, although there have been some dips along the way, Iain Stewart, who has been the manager of the fund since 2004, has achieved pretty steady returns.

The fund invests in a mixture of assets, but with a focus on equities. The team seeks to deliver its objectives in three main ways - by adding value through their stock selection over the longer term, utilising the flexibility of the portfolio to invest in different types of assets, and placing a real emphasis on capital preservation.

The portfolio is divided in two. There is a hub, or core, of 'return-seeking assets' such as shares and infrastructure funds, which generates the returns. This is surrounded by a tread, or outer layer, of 'stabilising assets and hedging positions', including government bonds and precious metals, which is there to help preserve capital and reduce volatility over the longer term.

Stewart believes the wisest approach is to promote capital preservation. This can mean the fund struggles when markets rise strongly, but when times get tough its defensive qualities shine through.

3 Year Performance
Fund Performance1.8%
Average of Rated Funds Group18%
Sector Performance5.1%
Fund information
Fund name
Newton Real Return Inst W Acc
Fund manager company
Newton & BNY Mellon Asset Mgmt
Fund type
OEIC
Fund managers
  • Iain Stewartsince 30/03/2004
Accolades
Fund objective
To achieve significant real rates of return in Sterling terms predominantly from a portfolio of UK and international securities.
Benchmark
  • 1 Month GBP LIBOR +4%
Investment style
Absolute Return,Total Return,Flexible
Investment method
None
Quick stats
1 Year return
-1.1%
1 Year rank in sector
65/76
Sector
UT Targeted Absolute Return
Yield
2.4%
Ongoing charge (OCF)
?A fund’s ongoing charges figure (OCF) is similar to the old-style total expense ratio. It reflects the annual charge to investors in the fund, in percentage terms, but does not include extra performance-related fees (where these are levied) or the fund’s trading expenses on its underlying investments.
0.8%
Fund size
£9,950m (£9,544m last year)
FE Risk score
?FE Risk Scores measure the riskiness of instruments relative to the FTSE 100 index of shares. Weekly volatility is measured over three years with recent behaviour counting more heavily than earlier behaviour. Cash-type investments will have scores close to zero. Funds will tend to have scores in the 0-150 range. The FTSE 100 is always scored at 100. There is no upper limit.
40
Mid price
113.18
Top in this sector
Fund name1 Year
JPM Gbl Macro Opps24%
FP Argnt Abl Rtn19.4%
City Financial Abs Eq16.9%
H2O MultiReturns13.5%
BlackRock Gbl Long Short Eq7.5%
...more in UT Targeted Absolute Return

Performance snapshot

Holdings snapshot

  • Not Specified37.3%
    Europe ex UK18.3%
    North America13.2%
    UK12.5%
    Money Market10.1%
  • Government Bonds13.2%
    Cash & Cash Equivalents10.1%
    Technology8.6%
    Financials8.4%
    Industrials8.1%
  • Europe ex UK Equities18.3%
    North American Equities13.2%
    Global Government Fixed Interest13.2%
    UK Equities12.5%
    Cash & Cash Equivalents10.1%

Performance vs Sector

Cumulative performance
 1 mth3 mth6 mth1 yr3 yr5 yr
Fund-2.7%-2.9%-2.8%-1.1%1.8%11.4%
Sector-1.3%-0.3%0.1%1.8%5.1%12.7%
Rank within sector67 / 7874 / 7868 / 7865 / 7644 / 6433 / 52
Quartile4th4th4th4th3rd3rd
Calendar performance
 YTD - 20182017201620152014
Fund-2.7%2.3%4%1.2%3.3%
Sector-0.5%3%1%2.2%2.5%
Rank within sector74 / 7845 / 7623 / 7039 / 6429 / 55
Quartile4th3rd2nd3rd3rd
Risk statistics
Alpha
?Alpha is a measure of a fund's over- or under-performance by comparison to its benchmark. If the Alpha is 5, the fund has outperformed its benchmark by 5%; so the greater the Alpha, the greater the outperformance.
-1.39
Beta
?Beta estimates a fund's volatility by comparison to that of its benchmark. A fund with a beta close to 1 means that the fund will move generally in line with the benchmark. Higher than 1 and the fund is more volatile than the benchmark and vice versa.
1.22
Sharpe
?This commonly-used measure calculates the level of return over and above the return of a notional risk-free investment, such as cash. The difference in returns is then divided by the fund's volatility. The resulting ratio is an indication of the amount of excess return generated per unit of risk.
-0
Volatility
?Volatility (or standard deviation), when applied to an investment fund, expresses its risk. It shows how widely a range of returns varied from the fund's average return over a particular period. For example, if a fund had an average return of 5%, and its volatility was 15, this would mean that the range of its returns over the period had swung between +20% and -10%.
5.19
Tracking error
?This measures the standard deviation of a fund's excess returns over the returns of an index or benchmark portfolio. As such, it can be an indication of 'riskiness' in the manager's investment style. A Tracking Error below 2 suggests a passive approach. At 3 and above the the manager will be deploying a more active investment style.
4.81
Information ratio
?This is a useful risk-adjusted measure of actively managed fund performance. It is calculated by deducting the returns of the fund's benchmark from the fund's overall returns, then dividing the result by its tracking error. The higher the Information Ratio the better. It is generally considered that a figure of 0.5 reflects a good performance, 0.75 very good, and 1.00 outstanding.
-0.21
R-Squared
?An indication of how closely correlated a fund is to an index or a benchmark. Values for R-Squared range between 0 and 1, with 0 indicating no correlation at all and 1 showing a perfect match. Values upwards of 0.7 suggest that the fund's behaviour is increasingly linked to its benchmark.
0.15
Price movement
52 week high119.11
52 week low112.19
Current bid price-
Current offer price-
Current mid price113.18
Region
1Not Specified37.25%
2Europe ex UK18.34%
3North America13.19%
4UK12.5%
5Money Market10.13%
6Pacific ex-Japan5.57%
7Others1.61%
8Japan1.41%
Industry sector
1Government Bonds13.18%
2Cash & Cash Equivalents10.13%
3Technology8.59%
4Financials8.44%
5Industrials8.14%
6Consumer Goods6.59%
7Health Care5.76%
8Debt5.16%
9Consumer Services5.15%
Asset type
1Europe ex UK Equities18.34%
2North American Equities13.19%
3Global Government Fixed Interest13.18%
4UK Equities12.5%
5Cash & Cash Equivalents10.13%
6Commodity & Energy6.37%
7Asia Pacific ex Japan Equities5.57%
8Global Emerging Market Fixed Interest5.16%
9Global Corporate Fixed Interest5.14%
Individual holdings
1UNITED STATES OF AMER TREAS NOTES 1.5% NTS 31/10/19 USD1002.87%
2UNITED STATES OF AMER TREAS BILLS 2.125% TB 30/09/24 USD1002.72%
3NOVARTIS AG2.21%
4CISCO SYSTEMS INC2.17%
5ISHARES PHYSICAL METALS PLC ISHARES PHYSICAL GOLD ETC USD1.84%
6AUSTRALIA(COMMONWEALTH OF) 3% TB 21/03/47 AUD100 (CDI)1.82%
7ROYAL DUTCH SHELL1.77%
8WOLTERS-KLUWER NV1.73%
9AIA GROUP LTD1.69%
Management
Fund manager group
Newton & BNY Mellon Asset Mgmt
Fund manager company
Newton & BNY Mellon Asset Mgmt
Fund type
OEIC
Fund objective
To achieve significant real rates of return in Sterling terms predominantly from a portfolio of UK and international securities.
Benchmark
  • 1 Month GBP LIBOR +4%
Investment style
Absolute Return,Total Return,Flexible
Investment method
None
Fund managers
NameSinceBiography
Iain Stewart30/03/2004Iain is Investment Leader in the Real Return team. He joined Newton in 1985, and specialises in the management of relative and absolute return multi-asset mandates. Iain is a member of a number of committees at Newton including the Global Strategy Group. He is an associate member of the UK Society of Investment Professionals (UKSIP), and holds a research Ph.D from the Ministry of Agriculture, Fisheries and Food.
Compliance
Transparent for German Tax, IA Recognised, UCITS IV Compliant, UCITS V Compliant
Domicile
No data available.
Fund for sale in
Austria, Germany, Spain, United Kingdom
Newton Real Return
Initial charge-
Annual charge1%
Min single investment£20,000
Min regular saving£1,000
Available in ISAYes
Ongoing charge (OCF)1.12%
Total expense ratio (TER)-
Bid price-
Offer price-
Mid price277.21
CurrencyGBX
Price updated15/02/2018
TypeIncome
Institutional or retail classRetail
Domicile-
Citi codeRZ07
Newton Real Return A
Initial charge-
Annual charge1.5%
Min single investment£1,000
Min regular saving£250
Available in ISAYes
Ongoing charge (OCF)1.62%
Total expense ratio (TER)-
Bid price-
Offer price-
Mid price111.13
CurrencyGBX
Price updated15/02/2018
TypeIncome
Institutional or retail classRetail
Domicile-
Citi codeBS97
Newton Real Return B Acc
Initial charge-
Annual charge0.85%
Min single investment£1,000
Min regular saving£250
Available in ISAYes
Ongoing charge (OCF)0.95%
Total expense ratio (TER)-
Bid price-
Offer price-
Mid price110.27
CurrencyGBX
Price updated15/02/2018
TypeAccumulation
Institutional or retail classRetail
Domicile-
Citi codeGVCF
Newton Real Return B Inc
Initial charge-
Annual charge0.85%
Min single investment£1,000
Min regular saving£250
Available in ISAYes
Ongoing charge (OCF)0.95%
Total expense ratio (TER)-
Bid price-
Offer price-
Mid price96.14
CurrencyGBX
Price updated15/02/2018
TypeIncome
Institutional or retail classRetail
Domicile-
Citi codeGVCG
Newton Real Return Exempt 1 Acc
Initial charge7%
Annual charge0.65%
Min single investment£75,000,000
Min regular saving£1,000
Available in ISANo
Ongoing charge (OCF)0.7%
Total expense ratio (TER)-
Bid price-
Offer price-
Mid price116.23
CurrencyGBX
Price updated15/02/2018
TypeAccumulation
Institutional or retail classInstitutional
Domicile-
Citi code0ZPP
Newton Real Return Exempt 1 Inc
Initial charge7%
Annual charge0.65%
Min single investment£75,000,000
Min regular saving£1,000
Available in ISANo
Ongoing charge (OCF)0.7%
Total expense ratio (TER)-
Bid price-
Offer price-
Mid price98.17
CurrencyGBX
Price updated15/02/2018
TypeIncome
Institutional or retail classInstitutional
Domicile-
Citi codeMWGW
Newton Real Return Exempt 2 Acc
Initial charge-
Annual charge0.75%
Min single investment£500,000
Min regular saving£1,000
Available in ISANo
Ongoing charge (OCF)0.8%
Total expense ratio (TER)-
Bid price-
Offer price-
Mid price233.43
CurrencyGBX
Price updated15/02/2018
TypeAccumulation
Institutional or retail classInstitutional
Domicile-
Citi codeRZ16
Newton Real Return Exempt 2 Inc
Initial charge-
Annual charge0.75%
Min single investment£500,000
Min regular saving£1,000
Available in ISANo
Ongoing charge (OCF)0.8%
Total expense ratio (TER)-
Bid price-
Offer price-
Mid price184.83
CurrencyGBX
Price updated15/02/2018
TypeIncome
Institutional or retail classInstitutional
Domicile-
Citi codeG2N4
Newton Real Return Exempt 3 Acc
Initial charge-
Annual charge0.6%
Min single investment£150,000,000
Min regular saving£1,000
Available in ISANo
Ongoing charge (OCF)0.64%
Total expense ratio (TER)-
Bid price-
Offer price-
Mid price97.27
CurrencyGBX
Price updated15/02/2018
TypeAccumulation
Institutional or retail classInstitutional
Domicile-
Citi codeNVDA
Newton Real Return Exempt 4 Acc
Initial charge-
Annual charge0.55%
Min single investment£250,000,000
Min regular saving£1,000
Available in ISANo
Ongoing charge (OCF)0.6%
Total expense ratio (TER)-
Bid price-
Offer price-
Mid price97.59
CurrencyGBX
Price updated15/02/2018
TypeAccumulation
Institutional or retail classInstitutional
Domicile-
Citi codeNWIF
Newton Real Return Exempt 5 Acc
Initial charge-
Annual charge0.5%
Min single investment£300,000,000
Min regular saving£1,000
Available in ISANo
Ongoing charge (OCF)0.55%
Total expense ratio (TER)-
Bid price-
Offer price-
Mid price96.93
CurrencyGBX
Price updated15/02/2018
TypeAccumulation
Institutional or retail classInstitutional
Domicile-
Citi codeOF8M
Newton Real Return Exempt L 1 Inc
Initial charge-
Annual charge0.65%
Min single investment£150,000,000
Min regular saving£0
Available in ISANo
Ongoing charge (OCF)0.54%
Total expense ratio (TER)-
Bid price-
Offer price-
Mid price97.85
CurrencyGBX
Price updated15/02/2018
TypeIncome
Institutional or retail classInstitutional
Domicile-
Citi codeNQ8C
Newton Real Return Inst Acc
Initial charge-
Annual charge1%
Min single investment£250,000
Min regular saving£50,000
Available in ISANo
Ongoing charge (OCF)1.05%
Total expense ratio (TER)-
Bid price-
Offer price-
Mid price146.76
CurrencyGBX
Price updated15/02/2018
TypeAccumulation
Institutional or retail classInstitutional
Domicile-
Citi codeFVE5
Newton Real Return Inst W Acc
Initial charge-
Annual charge0.75%
Min single investment£10,000,000
Min regular saving£0
Available in ISANo
Ongoing charge (OCF)0.8%
Total expense ratio (TER)-
Bid price-
Offer price-
Mid price113.18
CurrencyGBX
Price updated15/02/2018
TypeAccumulation
Institutional or retail classInstitutional
Domicile-
Citi codeGPQK
Newton Real Return Inst W Inc
Initial charge-
Annual charge0.75%
Min single investment£10,000,000
Min regular saving£0
Available in ISANo
Ongoing charge (OCF)0.8%
Total expense ratio (TER)-
Bid price-
Offer price-
Mid price98.39
CurrencyGBX
Price updated15/02/2018
TypeIncome
Institutional or retail classInstitutional
Domicile-
Citi codeGPQJ
Newton Real Return U Acc
Initial charge-
Annual charge0.65%
Min single investment£100,000,000
Min regular saving£0
Available in ISANo
Ongoing charge (OCF)0.7%
Total expense ratio (TER)-
Bid price-
Offer price-
Mid price103.99
CurrencyGBX
Price updated15/02/2018
TypeAccumulation
Institutional or retail classInstitutional
Domicile-
Citi codeM24S
Newton Real Return U Inc
Initial charge-
Annual charge0.65%
Min single investment£100,000,000
Min regular saving£0
Available in ISANo
Ongoing charge (OCF)0.7%
Total expense ratio (TER)-
Bid price-
Offer price-
Mid price96.92
CurrencyGBX
Price updated15/02/2018
TypeIncome
Institutional or retail classInstitutional
Domicile-
Citi codeM24R
Newton Real Return X Acc
Initial charge-
Annual charge-
Min single investment£0
Min regular saving£0
Available in ISANo
Ongoing charge (OCF)0.05%
Total expense ratio (TER)-
Bid price-
Offer price-
Mid price193.6
CurrencyGBX
Price updated15/02/2018
TypeAccumulation
Institutional or retail classInstitutional
Domicile-
Citi codeV472
Newton Real Return X Inc
Initial charge-
Annual charge-
Min single investment£0
Min regular saving£0
Available in ISANo
Ongoing charge (OCF)0.05%
Total expense ratio (TER)-
Bid price-
Offer price-
Mid price126.04
CurrencyGBX
Price updated15/02/2018
TypeIncome
Institutional or retail classInstitutional
Domicile-
Citi codeFVE4
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