Mellon opens retail version of Newton Phoenix

Mellon Global Investments has launched a retail version of its absolute return-oriented Newton Phoenix Multi-Asset fund. Retail investors can now access the portfolio through a sub-fund, with a lower initial investment.

Managed by Phillip Collins, six specialist fund managers will contribute to the new fund. It offers diversification between nine different asset classes and aims to outperform the return on cash by 2% over rolling three-year periods.

The Newton Phoenix Multi-Asset fund began life as part of a unit trust within Newton’s private client business. The minimum initial investment and top-up investment amounts were originally £10,000. But investors can now access the fund with an initial investment of £1,000 or £50 a month, or via Isa or Pep transfer.

The fund follows Newton’s thematic investment approach to equities and bonds, while also providing access to less-liquid asset classes. Its asset allocation strategy is based on research into the correlation of multiple asset classes over the long term.

The Newton Phoenix Multi-Asset fund invests in a broad spread of global equities, investment grade, index-linked and high-yield bonds, money market instruments, and via publicly quoted transferable securities, hedge funds, property, private equity and commodities. It comprises about one third in equities, one third in bonds and one third in the other asset classes.

In related news, the Bank of New York has made a bid for the Mellon Financial Corporation. The company will be called the Bank of New York Mellon Corporation and will have $16.6trn (£8.7trn) in assets under custody.