Simon Nichols marks 25 years with BNY Investments Newton

Marking 25 years at BNY Investments Newton and eight years leading the BNY Mellon Multi-Asset Balanced strategy, Simon Nichols has steered UK and global equities, and multi-asset portfolios through volatile market periods. His accounting roots bring a healthy cynicism to stock selection as part of a long-serving and experienced multi-asset team.

How did you end up working in asset management?

I was always interested in financial markets and investing. After university, I worked as a chartered accountant, gaining experience of audit and insolvency. That garnered a strong interest in what makes companies work and fail. I then moved into asset management so I could develop my knowledge of companies, sectors, regions and management teams.

What was your first role in asset management?

I joined BNY Investments Newton in April 2001 as an assistant fund manager in the UK equities team. I then moved into a research role, using my accountancy skills to assess company fundamentals and boost my knowledge of what made good investments. After that, I became a portfolio manager in the equities team before combining this experience and switching to multi-asset about 16 years ago.

What do you like most about working in asset management?

As a portfolio manager it is vital to keep on top of current affairs and spot themes and changes. Industries are constantly being disrupted by new products, technologies and competitors and I enjoy identifying how companies react to these changes, from a growth or a defensive perspective. I also like analysing how the interplay between government and monetary policy actions impacts asset class valuations.

Describe your role within the multi-asset team?

I’m lead manager on the BNY Mellon Multi-Asset Balanced and BNY Mellon Multi-Asset Global Balanced strategies. This means I construct the portfolios and gatekeep the research team’s ideas, making sure those ideas fit the strategies’ objectives. This involves picking ideas we hope will be long-term winners while keeping an eye on valuations. I’m also responsible for positioning fixed income and cash relative to where we think interest rates and yield curves are heading and blending these asset classes with equities. I am also lead manager on the flagship Newton Growth and Income strategy for charities.

What has kept you 25 years at BNY Investments Newton?

Multi-asset investing is a mindset at Newton, rather than just a product set. We think across capital structures and about how the broader environment could affect different asset classes. Over my career I’ve had the opportunity to witness several structural shifts in the global economy, financial markets and technological landscape. These shifts are not always obvious at the time, can endure for many years and reverse quickly, such as the commodities boom of the 2000s and the zero-interest rate environment of the 2010s. Our process affords us perspective, which is key to longer-term investing as is pragmatism and a healthy dose of humility.  A team approach, domain expertise across our research platform and lack of hierarchy have been important inputs to the process over the years.

What are you most proud of in your career to date?

Gaining the trust of clients to manage their assets is a privilege. This comes from having a process that clients can understand and developing long-term partnerships which can survive the vagaries of financial markets. I’ve been a research analyst, a UK manager, and a global manager. That versatility has set me up well for a multi-asset career and led to taking responsibility for the Multi-Asset Balanced strategy eight years ago. I’m proud of being able to deliver on client objectives because that’s why we are here, after all.

How would you describe your investment style?

I’m relatively cautious by nature which has influenced investment style. I like to challenge both sides of an investment case – what’s the buyer or seller thinking differently to me? Valuation and good company fundamentals are important. Having a long-term horizon helps to avoid areas of structural decline and helps to target capital into enduring opportunities. I try to maintain a balanced style which is not growth or value biased; we want growth in the portfolio, but at a reasonable valuation. At the same time, we’re not negative on value but we don’t want to be involved in companies with structural issues.

What puts you off investing in a company?

High levels of financial gearing, particularly when coupled with elevated operational gearing or cyclicality. I also try to avoid companies that are being disrupted and do not fit our long-term thematic backdrop, as well as those with poor capital allocation and cash flow characteristics.

Why does a multi-asset strategy makes sense in this environment?

We are in a period of significant disruption. Technological advances are happening at a speed not imagined only a few years ago. Geopolitically, a new world order is in the process of being established, demographics will redefine policy affordability, global monetary and fiscal paradigms are being questioned. Investors face numerous challenges and navigating these successfully requires the broadest possible toolkit which multi-asset investing is well placed to provide.

What do you enjoy doing outside of your day job?

I enjoy running – though my knees are no longer what they were.
 

The value of investments can fall. Investors may not get back the amount invested.

33169800, Exp: 25 September 2026