Investment teams

Newton has a 12-member global funds team, which specializes in the active management of global multi-asset and global equity (including international equity) portfolios. Within this team, we allocate mandates by broad benchmark types and we have a team of four that is responsible for the construction of our global equity model. This team comprises Paul Markham, James Harries, Robert Hay, and Jon Bell; they are collectively responsible for determining our policy for global equity (including international equity) funds and for constructing a model which acts as a template from which other funds can be constructed. Collectively, the global funds team is responsible for investments accounting for approximately £23.3bn, which represents 56% of Newton's total assets under management (as at 30 June 2010).

Newton is distinguished by having career analysts who conduct their industry and sector research globally. These analysts have expert knowledge in their field. Their backgrounds are largely in accounting, consulting, or in industry. Specialist global research at Newton is a separate career path from investment management.

In addition to the 19 equity analysts, the research team includes two members of the Responsible Investment team, five strategists, along with three credit analysts, who provide complementary fundamental analysis, as well as providing expertise on specific credit issues. Furthermore, the global industry focus of the analysts is complemented by input from 'regional' investment managers who have a broader view of the local market, and who cover the UK, US, Europe, and Asia.

The research output from the global analysts is of course supplemented by the worth of our regional and global portfolio managers. It is the interaction between the professionals in these different and complementary roles that is so important to achieving the optimum output from our research. We employ a 'twinning' system (a global analyst twinned with an investment manager) to promote this interaction and to ensure ideas and issues are widely discussed and voiced across the house.

The fixed income team at Newton comprises three areas: government, credit (high-yield) and credit (investment-grade). The fixed income portfolio managers are supported by credit analysts and work closely with other parts of the firm to build a complete picture of the fixed income and currency markets across the globe. Collectively, the fixed income team is responsible for managing approximately £3.2bn, which represents 7.6% of Newton's total assets under management (as at 30 June 2010).

The portfolio analytics team (PAT), which is part of the investment team and supports the portfolio analytics group and the chief investment officer by providing information on portfolio construction and risk profiles; the PAT produces comparative and independent analysis of portfolios.

We currently have a nine-member overseas investment team, which specialises in the active management of overseas equity portfolios. Within the overseas investment team, we manage equity products for Asia Pacific, US, and European clients. A team of four manages European equity portfolios. A team of four collectively manage our Asia Pacific equity portfolios. A specialist manages our US equity portfolios. Collectively, the overseas investment team is responsible for approximately £2.9bn, which represents 6.9% of Newton's total assets under management (as at 30 June 2010).

Newton has a eight-strong UK equities team, which specialises in the active management of UK equity portfolios. The team currently manages specialist UK equity portfolios worth £5.1bn and is also responsible for advising on the investment of all UK equity investments within Newton. The total house exposure to UK equities as at 30 June 2010 was £12.8bn.