BNY Mellon asset manager unveils macro themes underpinning investment strategies
LONDON and NEW YORK, December 12, 2011 — Newton* believes that, by taking a step back and focusing on the long term themes set to underpin and influence the global economy, it is possible for fund managers to excel for years to come. This was the fundamental view expressed at Newton's annual investment conference in London, Edinburgh and Leeds recently.
Among the key transitions identified by Newton are living longer, higher energy costs, more 'balanced' economic variables, unprecedented connectiveness, and a global move to less debt. "We believe growth opportunities lie in selective emerging economies – especially those with positive demographics and low debt-to-GDP ratios, as well as in the technology, energy and healthcare sectors," said Jeff Munroe, Chief Investment Officer at Newton*. "Moreover there are opportunities for dividend income from value-rich global franchises, and selective corporate bonds."
The theme for the conference was the ancient Indian fable The Blind Men & The Elephant, which tells the story of five blind men each asked to individually identify the shape of an elephant. By focusing solely on the part of the elephant they first touch, such as the trunk or the tusk, each fails to correctly recognise the whole shape. Its message: understand the importance of perspective, whole information and teamwork when making decisions, something which could be well applied to the investment management industry at this moment in time.
"Undeniably the post bubble landscape is a challenging one," added Munroe. "Markets are likely to remain volatile for the foreseeable future as debt burdens are reduced to manageable levels via state intervention and, in some instances, sovereign default. An extended period of depressed economic activity and a low average returns environment appear inevitable."
Newton* is a London-based global asset management subsidiary of The Bank of New York Mellon Corporation and part of BNY Mellon Asset Management. With assets under management of more than 43.4 billion pounds sterling, including assets managed by Newton Investment Management Limited as dual officers of Newton Capital Management Limited and The Bank of New York Mellon, Newton's group of affiliated companies provides a broad range of award-winning investment products and services to individuals, pension funds, charities and corporations. News and other information about Newton is available at www.newton.co.uk.
BNY Mellon Asset Management is one of the world's leading asset management organizations, encompassing BNY Mellon's affiliated investment management firms and global distribution companies. Information about BNY Mellon Asset Management can be found at www.bnymellonam.com.
BNY Mellon is a global financial services company focused on helping clients manage and service their financial assets, operating in 36 countries and serving more than 100 markets. BNY Mellon is a leading provider of financial services for institutions, corporations and high-net-worth individuals, offering superior investment management and investment services through a worldwide client-focused team. It has $25.9 trillion in assets under custody and administration and $1.2 trillion in assets under management, services $11.9 trillion in outstanding debt and processes global payments averaging $1.6 trillion per day. BNY Mellon is the corporate brand of The Bank of New York Mellon Corporation. Additional information is available on www.bnymellon.com or follow us on Twitter @BNYMellon.
*'Newton' refers to the following group of affiliated companies: Newton Investment Management Limited, Newton Capital Management Limited, Newton International Investment Management Limited, Newton Capital Management LLC and Newton Fund Managers (C.I.) Limited. Assets under management include assets managed by all of these companies except Newton Capital Management LLC, which provides marketing services in the U.S. for Newton Capital Management Limited. Except for Newton Capital Management LLC and Newton Capital Management Limited, none of the other Newton companies offer services in the US and Canada. Newton Capital Management Limited is registered in the United States as an investment adviser under the Investment Advisers Act of 1940. Unless otherwise stated, all information source BNY Mellon Asset Management as at 30 September 2011. This press release is qualified for issuance in the UK, US and Canada and is for information purposes only. It does not constitute an offer or solicitation of securities or investment services or an endorsement thereof in any jurisdiction or in any circumstance in which such offer or solicitation is unlawful or not authorised. This press release is issued by BNY Mellon Asset Management (US & Canada) and BNY Mellon Asset Management International Limited (ex-US/Canada) to members of the financial press and media and the information contained herein should not be construed as investment advice. Past performance is not a guide to future performance. Registered office of BNY Mellon Asset Management International: BNY Mellon Centre, 160 Queen Victoria Street, London, EC4V 4LA. Registered in England no. 1118580. Authorised and regulated by the Financial Services Authority. A BNY Mellon Company(SM)