Many former Edward Jones clients who are transferring away from Towry have not received dividends from their investments in Newton higher income funds for over two months.
Many of the clients who are affected are retired. Some have not received their quarterly payments for August from the Newton Global Higher Income and Higher Income funds. These were two of the core funds that Edward Jones was placing clients in before it was bought by Towry in October 2009.
Peter Foster, the head of marketing at Towry, says: “This was a bit of a shared issue between us and Newton. They actually paid too much money to us, so we were then reconciling the issues on an account by account basis.” (article continues below)
But a Newton spokesman says the problem was simply caused by the high volume of transfers out of Towry.
He says: “We are aware of a significant volume of transfers taking place following the Towry takeover of Edward Jones. This has resulted in a number of transfers taking place during the period when some funds have gone ex-dividend, resulting in Towry receiving dividends which need to be forwarded on to the underlying investors.”