Newton has launched its third target return fund, which aims to achieve the London interbank offered rate (Libor) plus 3.5% percentage points a year. The Newton Diversified Growth fund, managed by Phil Collins, who also runs the £115m Newton Phoenix Multi-Asset fund, went live on December 14.
Structured as a Ucits III Oeic, the fund is run similarly to the Phoenix Multi-Asset fund, except that it does not invest in fixed income. The portfolio consists of about one half global equities, with the other half diversified across a broad range of asset classes including private equity, funds of hedge funds, commodities and property.
The portfolio’s exposure to these asset classes is gained via listed securities and/or funds. The fund carries both income and accumulation share classes, both of which charge an annual management fee of 1.5% and an initial charge of up to 4%. Minimum investment is £1,000.