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BNY Mellon Real Return Class U - Accumulation (GBP)

Sell:117.51p Buy:117.51p Change: 0.12p (0.10%)
Prices as at 18 October 2019
Sell:117.51p
Buy:117.51p
Change: 0.12p (0.10%)
You can buy or sell holdings in this fund through an ISA, Lifetime ISA, SIPP or Fund & Share Account
Prices as at 18 October 2019
Sell:117.51p
Buy:117.51p
Change: 0.12p (0.10%)
Prices as at 18 October 2019
You can buy or sell holdings in this fund through an ISA, Lifetime ISA, SIPP or Fund & Share Account
The selling price currently displayed is higher than the buying price. This can occur temporarily for a variety of reasons; shortly before the market opens, after the market closes or because of extraordinary price volatility during the trading day.

Our view on this Fund

This fund features on our Wealth 50 list of what we believe are the best funds in each sector.

The fund is managed by Suzanne Hutchins and Aron Pataki. They've got the support of veteran investor Iain Stewart and Newton's wider team of research analysts.

The fund has done a good job of sheltering investors' money from short term stock market volatility while growing it in the long term. We think this fund could be a good addition to a more defensive portfolio or provide diversification to one with more invested in shares.

Our view on the sector

Total Return funds try to grow investors' money over the medium-to-long-term by making money when markets are rising, and sheltering it when they fall. Most invest in a combination of assets from shares and bonds to cash, commodities and currencies. They're not guaranteed to make money though. Like any investment they will fall as well as rise in value. The return is determined by the manager's skill and each fund will have a different investment process. That's why we think each fund should be judged on its own merits.

Performance Analysis

The fund has done much better than cash over the past 10 years. It's also been much less volatile than the broader global stock market. You should remember that unlike cash, the fund can fall as well as rise in value so you could get back less than you put in.

The fund tends to provide some shelter when stock markets fall, but we'd expect it to lag behind when markets rise quickly.

Investment Philosophy

The Newton Real Return team form a view of the world and build the portfolio around themes they expect to develop over the long term. They aim to perform better than cash (as measured by LIBOR) by 4% per year over a five year period.

Process and Portfolio Construction

The fund's built in two layers. One invests in riskier investments like shares, high-yielding bonds, and emerging markets. These have the potential to boost returns over the long term. The other invests in assets such as government bonds, gold and cash, which could help preserve wealth when stock markets fall. The proportion of shares held in the portfolio can range between 30% and 70% depending on how confident the managers feel about future market returns.

The managers also use derivatives, which can help control the impact of the performance of certain assets, though they can also increase risk.

question mark Manager Track Record Based on HL Quantitative Research

  • BNY Mellon Real Return GBP Inc
  • LIBOR GBP 1 Month + 400 Bps
FROM: TO:


Fund Track Record

18/10/14 to 18/10/15 18/10/15 to 18/10/16 18/10/16 to 18/10/17 18/10/17 to 18/10/18 18/10/18 to 18/10/19
Annual return 5.10% 7.39% -0.60% -0.91% 10.16%

Please remember past performance is not a guide to future returns. Where no data is shown, figures are not available. This information is provided to help you choose your own investments, remember they can fall as well as rise in value so you may not get back the original amount invested.

Information about the fund

Fund manager biography

Manager Name: Andy Warwick
Manager start date: 31 December 2018
Manager located in: TBC

TBC

manager photo
Manager Name: Aron Pataki
Manager start date: 31 December 2018
Manager located in: TBC

Aron is a global portfolio manager and risk strategist for the real return portfolios, with a particular focus on the use of derivatives and hedging. He is also the lead manager on the Euro real return strategy. Aron joined Newton in 2006 as a member of the portfolio analytics team, where he was responsible for risk analysis and portfolio construction across Newton's institutional and retail portfolios. Previously, he worked as a quantitative analyst at Lacima Group. 10 years at Newton15 years' investment experience

manager photo
Manager Name: Suzanne Hutchins
Manager start date: 31 December 2018
Manager located in: TBC

Suzanne Hutchins rejoined Newton in 2010 as global investment manager and member of the Real Return team. Suzanne has lead management responsibility for the Global Real Return USD strategy. She moved to Capital International in 2005 as investment specialist for global equity, income and absolute-return-based strategies. She had additional client facing responsibility for ESG (Environmental, Social and Governance) issues. Suzanne initially joined Newton in 1991 as a research analyst after completing a BA (Hons) at University College London. During her first 14 years with Newton, she worked closely with Stewart Newton before becoming lead manager on the UK and Intrepid team. She managed multi-asset and global equity mandates, as well as RPI+ based strategies, for institutional and retail clients. 20 years at Newton26 years' investment experience

Data policy - All information should be used for indicative purposes only. You should independently check data before making any investment decision. HL cannot guarantee that the data is accurate or complete, and accepts no responsibility for how it may be used. Benchmark data provided subject to this disclaimer.
You can buy or sell holdings in this fund through an ISA, Lifetime ISA, SIPP or Fund & Share Account