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Active multi-asset solutions
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Our funds directly invest across equities, bonds, alternatives and cash. This means clients have access to a broad set of asset classes through one fund and can benefit from its diversification effect.
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Charity Authorised Investment Fund (CAIF) structure
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Our funds have been set up using a CAIF structure. This is a dual‑regulated vehicle overseen by both the Charity Commission and the Financial Conduct Authority. As registered charities, CAIFs can distribute income and gains to participating charities without further tax, and their annual management charges are currently not subject to VAT.
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Ability for smoothed distribution unit classes
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In the CAIF structure, the funds have the option for an income smoothing unit class feature. This enables the funds to hold back income from one accounting period to another and pay out previously held income, allowing for the distribution of a steady stream of income.
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Performance benchmark aligned to charitable investors’ needs
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As a primary performance benchmark, all our charity funds use inflation (as measured by the Consumer Price Index) plus 4% per annum (after fees have been deducted) over rolling 10-year periods. We believe this aligns with charitable investors’ needs and objectives to outperform inflation over the longer term.
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Exclusions
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None of our charity funds invest in companies that derive more than 10% turnover from tobacco production.
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Multidimensional research
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Our investment team members exploit an unusually wide and innovative range of inputs in their idea generation. In addition to in-house fundamental analysis, they harness expertise from subject-matter specialists, including macroeconomic, quantitative and responsible investment research.
Pooled investment offering
Our actively managed pooled fund solutions for charities harness the investment experience of our dedicated charities team. The funds are designed to meet a broad range of investor objectives, including those focused on long-term income and growth generation, as well as responsible investing.
Tax treatment depends on the individual circumstances of each client and may be subject to change in the future. Newton is not a tax expert and independent tax and/or legal advice should be sought.
Our pooled funds for charities
Investment objective
To generate capital growth and income growth over a period of 5-7 years by investing at least 70% of the Fund’s assets in a global portfolio of equities (company shares) and fixed income securities.
Benchmark
The Newton Growth and Income Fund for Charities (CAIF) uses the following two measures as appropriate benchmarks for comparison:
Benchmark 1: Over rolling 10-year periods (meaning a period of 10 years, no matter which day you start on), the Fund will measure its performance after fees against inflation (as measured by the Consumer Price Index) plus 4% per annum. The Consumer Price Index (CPI) is the main measure of inflation in the UK and tracks the average change from month to month in the prices of goods and services purchased by most UK households. This comparator is considered appropriate as it is representative of the target return of the Fund.
Benchmark 2: As a secondary comparator, the Fund will measure its performance against a mixed (composite) index which comprises 55% FTSE World ex UK TR Index, 20% FTSE All-Share TR Index, 20% FTSE Actuaries UK Conventional Gilts All Stocks TR Index and 5% 7-Day Compounded SONIA. The FTSE World ex UK TR Index represents the performance of company shares from developed and advanced emerging markets excluding the UK. The FTSE All-Share TR Index tracks the performance of company shares listed on the London Stock Exchange and is representative of the UK equity market. The FTSE Actuaries UK Conventional Gilts All Stocks TR Index measures the performance of sterling-denominated UK government fixed income securities (gilts). SONIA (Sterling Overnight Index Average) is the average interest rate banks pay to borrow pounds sterling overnight and is used as a proxy for the return on cash deposits. The 7-day rate is calculated by compounding the daily SONIA rates throughout the previous 7-day period. This comparator is considered appropriate because it includes a broad representation of the asset classes, sectors and geographical areas in which the Fund predominantly invests.
As an actively managed Fund, the Investment Manager can make investment decisions (whether to buy, sell or hold assets) at its discretion. These decisions are made in line with the Fund’s objective and investment policy as disclosed in the Prospectus.
Investment objective
To achieve income and capital growth in excess of inflation (as measured by the Consumer Price Index) plus 4% per annum (after fees have been deducted) over the long term (rolling 10-year periods).
There is no guarantee that the Fund will achieve its investment objective or that a positive return will be delivered over any time period and capital is at risk.
Benchmark
The Newton Responsible Multi-Asset Fund for Charities uses the following two measures as appropriate benchmarks for comparison:
Benchmark 1: Over rolling 10-year periods (meaning a period of 10 years, no matter which day you start on), the Fund will measure its performance after fees against inflation (as measured by the Consumer Price Index) plus 4% per annum. The Consumer Price Index (CPI) is the main measure of inflation in the UK and tracks the average change from month to month in the prices of goods and services purchased by most UK households. This comparator is considered appropriate as it is representative of the target return of the Fund.
Benchmark 2: As a secondary comparator, the Fund will measure its performance against the ARC Steady Growth peer group benchmark. This benchmark is specifically designed to be used by charity trustees and advisers in assessing the performance of charity investment portfolios. This comparator is considered appropriate as it is representative of the Fund’s peer group and its risk profile.
As an actively managed Fund, the Investment Manager can make investment decisions (whether to buy, sell or hold assets) at its discretion. These decisions are made in line with the Fund’s objective and investment policy as disclosed in the Prospectus.
Fund sustainability characteristics
The Fund is subject to a set of minimum exclusions referred to as ‘sustainable investment restrictions’. These restrictions include companies involved in or that generate a material proportion of revenues from activities that are deemed to be harmful from an environmental or social perspective.
The Fund does not seek a specific sustainability outcome as part of its investment objective, but in pursuing its investment objective a minimum of 70% of holdings will be invested in securities assessed to have sustainability characteristics, in accordance with the Newton sustainable investment framework. This Fund does not have a UK sustainable investment label.
Further information on the Fund’s sustainability characteristics is available in the UK SDR Consumer Facing Disclosure (CFD).
Investment objective
To achieve income and capital growth in excess of inflation (as measured by the Consumer Price Index) plus 4% per annum (after fees have been deducted) over the long term (rolling 10-year periods) while adhering to the Fund’s Catholic faith-consistent exclusions policy.
There is no guarantee that the Fund will achieve its investment objective or that a positive return will be delivered over any time period and capital is at risk.
Benchmark
The Newton Catholic Values Fund for Charities uses the following two measures as appropriate benchmarks for comparison:
Benchmark 1: Over rolling 10-year periods (meaning a period of 10 years, no matter which day you start on), the Fund will measure its performance after fees against inflation (as measured by the Consumer Price Index) plus 4% per annum. The Consumer Price Index (CPI) is the main measure of inflation in the UK and tracks the average change from month to month in the prices of goods and services purchased by most UK households. This comparator is considered appropriate as, whilst it does not take Catholic values criteria into account, it is representative of the target return of the Fund.
Benchmark 2: As a secondary comparator, the Fund will measure its performance against the ARC Steady Growth peer group benchmark. This benchmark is specifically designed to be used by charity trustees and advisers in assessing the performance of charity investment portfolios. This comparator is considered appropriate as, whilst it does not take Catholic values criteria into account, it is representative of the Fund’s peer group and its risk profile.
As an actively managed Fund, the Investment Manager can make investment decisions (whether to buy, sell or hold assets) at its discretion. These decisions are made in line with the Fund’s objective and investment policy as disclosed in the Prospectus.
How to invest
Please complete an application form and send it, together with your initial investment, to the following address: BNY Mellon Fund Managers Limited, Client Service Centre, PO Box 366, Darlington, DL1 9RF.
The units are purchased on a daily basis and a contract note will be sent within one working day.
Your capital may be at risk. The value of investments and the income from them can fall as well as rise and investors may not get back the original amount invested.
The funds invest in international markets. This means they are exposed to changes in currency rates, which could affect the value of the funds.
Investments can be affected by interest rates and inflation trends, which may negatively affect the value of the funds.
The investment policy for the Newton Responsible Multi-Asset Fund for Charities places restrictions on its exposure to certain sectors or types of investments to reflect its responsible investing approach. The Fund's performance may be negatively impacted due to these restrictions in comparison to funds which do not have these restrictions.
Bespoke segregated portfolios
For charitable organisations with more complex requirements, requiring tailored ethical screening and/or particular asset allocation solutions or income management, we manage segregated investment portfolios. We will discuss your investment needs with you in order to understand your aims, objectives, requirements and time horizon.
Why partner with us
We are a trusted long-term partner to charities and are proud to have been managing assets on behalf of an extensive range of UK charities for nearly three decades.
We are backed by the strength of BNY which provides enterprise-scale shared services, governance, risk and compliance oversight, technology enablement, and global distribution, while giving investment autonomy to each underlying investment team.
Our charity clients have the comfort of knowing that one of the world’s largest financial services providers sits behind the investment platform that is working to meet their charitable objectives
Charities investment team
Our relationships with UK charities are overseen by our experienced multi-asset and charities investment team.
Contact us
Charitable organisations are supported by our dedicated team of client directors and support staff. Get in touch to learn more about our pooled funds or bespoke segregated portfolios at:
Email: newton.charities@bny.com
Phone: 020 7163 6377.
Your capital may be at risk. The value of investments and the income from them can fall as well as rise and investors may not get back the original amount invested.