:: Derive global themes
The starting point of our process is to provide a global context for companies. Our economists, analysts, portfolio managers and other strategists develop and apply a number of themes which are our interpretation of the forces of global change affecting companies. These are then used to focus our research on the areas that we believe are most likely to yield the best performing securities.

:: Define stocks for research
Our analysts interpret the themes and select those stocks that, in our view, are best placed to take advantage of investment themes and trends that we believe will drive financial markets on a global basis.

:: Develop recommended lists
Having narrowed the universe of stocks, analysts seek out those companies that, based on our analysis, are attractively valued, have strong fundamentals, and may benefit from one or more themes. Constant communication and research prioritization meetings between analysts and other investment professionals underpins this research process, and results in our recommended list.

:: Create model and client portfolios
Just as analysts do not develop recommendations in isolation, portfolio managers develop their model portfolios in teams. Our equity and fixed income model portfolios form the basis of client portfolios and reflect Newton’s best ideas for each client’s intended benchmark, investment objective and restrictions.

:: Manage risk throughout the process
The interaction between investment professionals ensures a cohesive and consistent approach to stock selection and implementation. From fundamental research through to portfolio construction, risk is assessed throughout the investment process. In addition, a specialist team of experts formally monitor portfolio risk using a range of risk models and other controls.