Newton has merged its equity and fixed income analysis teams ahead of plans to launch total ret...
Newton has merged its equity and fixed income analysis teams ahead of plans to launch total return investment vehicles that will be an alternative to hedge funds.
Chief investment officer Jeff Munroe said Newton will begin analysing equity and debt securities as differing ways of accessing a single business rather than considering the asset classes separately.
'We want to be able to look at a company or a situation and decide what is the best way of getting exposure,' he said.
'We want to find what is interesting about the company, what is the value of the debt and the equity, and whether there is a case of holding one class of asset versus another. These will be interesting comparisons for us to be able to make in the future.'
He gave the example of BskyB, where the group holds both the equity and corporate bonds Munroe added: 'There might be some circumstances where we would probably just own one or the other.'
The new research process is to be used on existing working on plans to launch absolute return vehicles. While reluctant to reveal the structure of the vehicles, Munroe said they would not be hedge funds.
'We never thought that it would be our role to be a leader in the first phase of hedge fund development,' he said.
Industry Voice: Scottish Widows pension expert Robert Cochran and economist Andrew Scott discuss the future of employment and income, in episode three of Scottish Widows' podcast series.
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