Background
Newton Investment Management North America, LLC (the “Firm”, “we”, “us” or “NIMNA”) is a limited liability
company organized under the laws of the State of Delaware. We are an indirect subsidiary of The Bank of New
York Mellon Corporation (“BNY Mellon” or the “Bank”). The Firm was established in 2021, comprised of equity and
multi-asset teams from an affiliate, Mellon Investments Corporation. Mellon was established in 1933 with roots
tracing back to the late 1800s.
The Firm is part of the group of affiliated global companies that individually or collectively provide investment
advisory services under the Newton or Newton Investment Management brand (collectively “Newton” or “Newton
Group”).
In addition to NIMNA, Newton currently includes:
• Newton Investment Management Limited (“NIM”), and
• Newton Investment Management Japan Limited (“NIMJ”)
NIM is authorized and regulated in the United Kingdom by the Financial Conduct Authority (“FCA”) and is
registered as an investment adviser with the SEC. NIM was incorporated on June 6,1978 with Reed Stenhouse,
a Scottish insurance broker. NIM became a subsidiary of BNY Mellon on July 23, 1998. NIMJ was established in
March 2023 and includes the Japanese equity management division of an affiliate, BNY Mellon Investment
Management Japan Limited. Unless otherwise stated, the information within this Form ADV is limited to Newton
Investment Management North America, LLC.
Advisory Business
The Firm is an investment adviser registered with the SEC pursuant to the Investment Advisers Act of 1940, as
amended (“Advisers Act”). The Firm provides investment advisory services to U.S and non-U.S. clients. We
provide these services on a discretionary or non-discretionary basis to institutional investors in the form of separate
accounts, pooled investment vehicles including but not limited to registered mutual funds, collective investment
funds, UCITs and private funds.
The Firm operates through two separate investment product lines, comprising the “Equity Product Line” and the
“Multi-Asset Product Line”, the “Product Lines”, respectively. The Product Lines operate semi-autonomously
under the umbrella of the Firm, subject to the global policies and procedures of the Firm and BNY Mellon, as
applicable.
Clients typically obtain our investment advisory services pursuant to (i) a written agreement such as an investment
management or sub-advisory agreement directly with NIMNA or through BNY Mellon (when our employees are
acting as dual officers of the Bank) or (ii) a trust agreement or participation agreement with the Bank (when our
employees manage assets of collective investment funds of the Bank as a sub-advisor hired by the Bank).
Investors also access our investment advisory services by investing in pooled vehicles which are sponsored or
established by the Firm, our affiliates or unaffiliated third parties. See Item 10 “Dual Officers and Employees” for
more information about our dual officer arrangements.
Please refer to Item 8 of this Brochure for a description of the strategies provided by each Product Line, in which
we invest client assets.
Investment Guidelines
The Firm offers a variety of carefully developed investment strategies (“Strategies” and each, a “Strategy”). We
generally manage all client accounts in accordance with a model portfolio that is based upon a selected Strategy.
We work with clients to create investment guidelines that are mutually acceptable to the client and the Firm. When
creating investment guidelines, clients may impose investment restrictions in certain individual securities or types
of securities. Clients who impose investment restrictions might limit our ability to employ on behalf of a particular
strategy resulting in investment performance that differs from the intended strategy and from other accounts that
have not imposed such restrictions.
The Firm also offers investment advisory services in the form of pooled investment vehicles or “Funds.” Each
pooled investment vehicle has an investment objective and a set of investment policies and/or guidelines that we
must follow. For these reasons, we cannot tailor the investment guidelines of a Fund to meet individual investor
needs. In addition, we cannot impose individual investment restrictions on our investment strategies for underlying
investors in the pooled investment vehicles.
We also provide management services on a non-discretionary basis where we make recommendations to the
client, but all investment decisions are made by the client and may or may not be implemented by us.
Wrap Fee Programs and Model Delivery
A client in a wrap fee program (“wrap fee program”) typically receives investment management of account assets
through one or more investment advisers participating in the wrap fee program and also receives trade execution,
custodial, performance monitoring and reporting services (or some combination of these or other services) for a
single, all-inclusive (or “wrap”) fee charged by the program sponsor based on the value of the client’s account
assets. The program sponsor typically assists the client in defining the client’s investment objectives based on
information provided by the client, aids in the selection of one or more investment managers to manage the client’s
account and periodically contacts the client to ascertain whether there have been any changes in the client’s
financial circumstances or objectives that warrant a change in the arrangement or the manner in which the client’s
assets are managed.
Under these wrap fee program arrangements, our affiliate, enters into an agreement with the program
sponsor/manager. The program sponsor/manager then delegates responsibility for investment recommendations
to us. The primary manager under the program retains ultimate decision-making responsibility for determining
which securities are to be purchased or sold for client accounts and for implementation of such decisions pursuant
to the agreement entered into with the program sponsor/manager. In such cases, our recommendations are
implemented subject only to differences resulting from individual investment guidelines or restrictions, tax
harvesting or other
needs of the particular program client. NIMNA does not act as a program sponsor, nor do we
conduct physical trading for any of these programs. We receive a portion of the allocated wrap fee for the services
provided.
When we provide investment recommendations in connection with a wrap fee program, we do not negotiate on
the client’s behalf brokerage commissions or other costs for the execution of transactions in the client’s account.
Instead, in most instances transactions are executed through the program sponsor or through the program
sponsor’s designated affiliate given that execution costs for agency transactions typically are included in the all-
inclusive fee charged by the program sponsor. Most program agreements, however, provide that other broker-
dealers can be selected to execute trades if deemed appropriate to achieve best execution. If a broker-dealer
other than the program sponsor or the program sponsor’s designated affiliate is selected to affect a trade for a
client’s account, any execution costs charged by that other broker-dealer typically are charged separately to the
client’s account. Accordingly, clients who elect to participate in wrap fee programs should satisfy themselves that
the program sponsor is able to provide best execution for transactions.
In evaluating a wrap fee program, clients should consider a number of factors. A client may be able to obtain some
or all of the services available through a particular program on an “unbundled” basis through the program sponsor
or through other firms and, depending on the circumstances, the aggregate of any separately paid fees may be
lower (or higher) than the single, all-inclusive fee charged in the program. Payment of an asset-based fee can
potentially produce accounting, bookkeeping or income tax results that differ from those resulting from the separate
payment of (i) securities commissions and other execution costs on a trade-by-trade basis and (ii) advisory fees.
Any securities or other assets used to establish a program account can be sold, and the client will be responsible
for payment of any taxes due. The Firm recommends that each client consult with his or her tax adviser or
accountant regarding the tax treatment of wrap fee program accounts.
Clients participating in wrap fee programs typically receive a disclosure brochure from the program sponsor
detailing the wrap fee program prior to their selection of us as adviser or sub-adviser, which includes a description
of the services provided by the Sponsor and the applicable fee schedule. The fees and features of each wrap fee
program vary and, therefore, clients in wrap fee programs should consult the program sponsor’s brochure for the
fees and features applicable to their account. We do not act as a program sponsor of any wrap fee programs.
Program sponsors, however, obtain brokerage, clearing and other wrap program services from our affiliates.
Our relationships with Sponsors have the potential to create certain conflicts of interest for the Sponsors and for
us. We provide investment advisory services to certain affiliated Sponsors, including BNY Mellon Securities
Corporation (“BNYMSC”). If the Sponsor is affiliated with us, the Sponsor may have an incentive to give us access
to the account and to direct clients to us, based on the affiliation rather than based on our expertise or performance
or the client’s needs. Similarly, in hopes of gaining clients through a Wrap Fee Program, we may have an incentive
to execute brokerage transactions through the Sponsor (whether affiliated or unaffiliated), who in turn may
recommend us to Wrap Fee Program participants. Where NIMNA deals with an affiliate, it must ensure that the
client is not materially disadvantaged. To manage this conflict, Newton has a number of policies and procedures
in place to perform actions, controls and checks to manage and reduce the risk of the conflict occurring.
Assets Under Management
As of December 31, 2023, the Firm had total assets under management of $47,862,573,370. This figure is
comprised of:
$47,527,720,208 managed on a discretionary basis;
$334,853,162 managed on a non-discretionary basis
As of December 31st, 2023, NIMNA also provided $8,229,016,323 of assets under advisement for a model of
securities which the Firm does not arrange and as to which we do not affect the purchase or sale of securities.
Class Actions: Litigation
It is our policy that we do not advise, initiate or take any other action on behalf of clients relating to securities held
in the client’s account managed by us in any legal proceeding (including, without limitation, class actions, class
action settlements and bankruptcies). The Firm does not file proofs of claims relating to securities held in the
client’s account and does not notify the client or the client’s custodian of class action settlements or bankruptcies
relating in any way to such account. Typically, custodians submit filings in connection with class action settlements
and handle bankruptcy filings. Each client should consult with its custodian and other service providers to ensure
such coverage.
Privacy Policy
NIMNA does not have individual clients that meet the definition of consumer and only provides advisory services
to institutional investors at this time. In the event that NIMNA were to enter into advisory agreements with a natural
person the Firm’s privacy policy would be amended to address the specific requirements and regulations that the
Firm would be subject to with respect to consumers and customers. We maintain physical, electronic and
procedural safeguards that comply with all applicable federal and state regulations to safeguard non-public
information. We are careful to limit access to nonpublic information. Our employees have access to client
information based on their responsibilities. This access enables them to assist in completing transactions and
resolving any client service issues that may arise. We may collect nonpublic personal information about our clients
from account opening documentation and transactions with us. We do not share information subject to the privacy
policy with anyone, except as authorized by the client or permitted by law.