BNY Mellon to merge away Newton Managed Income fund

Merge-Mergers-700.jpgBNY Mellon is merging the Newton Managed Income fund into the Newton Multi Asset Income fund in a bid to simplify its multi-asset range and streamline costs for investors.

The £67m Managed Income fund is managed by Tim Wilson and launched in 2008. It will be merged into the £70m Multi Asset Income fund on 27 January. The Multi Asset Income fund is approaching its three-year track milestone having launched in February 2015.

Over one year the Multi Asset Income fund has returned 11.4 per cent compared to the 13.2 per cent average of the IA Flexible Investment sector, FE data shows.

A spokesperson for BNY Mellon says: “The two funds aim to deliver very similar outcomes, but the Multi-Asset Income fund achieves this in a more flexible manner. By bringing the two funds together, the overall costs to investors should reduce owing to the economies of scale and efficiencies that can be obtained from the management of a larger combined fund.

“In addition, the Multi-Asset Income fund aims to pay a stable, regular monthly income through 11 smoothed monthly payments with the remaining balance paid in the 12th month.”

In 2013 the Managed Income portfolio was the receiver fund when it was merged with the Newton Cautious Managed fund.