Newton goes live with Global Opportunities

The Newton Global Opportunities fund launched last week. Run by global equity manager Alex Stanic, the fund will be managed in a similar style to John Wood’s 124m Newton UK Opportunities fund.

The Global Opportunities fund’s mandate is to maximise long-term capital growth by investing in a concentrated portfolio of between 40 and 60 global stocks, with no benchmark constraints. The approach allows the fund to take meaningful positions in companies that will have a greater impact on returns.

Mellon Global Investments head of marketing Alan Mearns says: “We have only just started promoting the fund but reaction has been positive. We have seen considerable interest from a number of intermediaries.”

Mearns explains: “It is quite a specialist, concentrated, higher-risk portfolio using high-conviction ideas and is aimed at the more specialist investor. The fund makes a good specialist global holding within a diversified investment portfolio.”

Stanic is a member of Newton’s global equity team, which uses a cross-border industry-based approach to stock selection. Based in London, the team currently manages the $14m (8m) offshore Mellon Global Intrepid portfolio using a similar approach.

Although the new fund will not mirror the Mellon Global Intrepid fund exactly, the makeup of the Global Opportunities fund is expected to be similar to the offshore portfolio, explains Mearns.

Also run by Stanic, the Global Intrepid fund had top three holdings in KBC Group, Air Liquide and Wyeth as at May 31. Financials and non-cyclical consumer goods made up the largest two sectors, representing half of the Dublin-domiciled portfolio.

Investments in companies in America, Britain and France account for 48% of the fund’s assets. The dollar share class of the Global Intrepid fund returned 21.7% in the 12 months to June 27, according to Standard & Poor’s. The portfolio’s deputy fund manager Paul Markham also assists Stanic on the Newton Global Opportunities fund.

The new onshore Oeic has a 1,000 minimum investment, an initial charge of 4% and an annual management charge of 1.5%. The portfolio sits in the Investment Management Association’s Global Growth sector and is distributed by Mellon Global Investments.