Newton Global Income has been reinstated to The Adviser Centre’s recommended list of funds since it was removed in December following James Harries’ departure.
Harries’ former deputy manager and successor on the £4.5bn fund, Nick Clay has instilled confidence to City Financial – which runs The Adviser Centre – that he would retain the fund’s global thematic framework and continue to draw on the additional resources available to him and the global equity income team.
City Financial head of investment research Gill Hutchison says: “Importantly, he is well supported by the other members of the Newton investment team, including the leader of the Real Return team Iain Stewart, and a well-resourced team of experienced global industry analysts.”
Newton Global Income delivered a 26.4 per cent return over three years to 16 February against the IA Global Equity Income sector’s 13.3 per cent.
According to FE, performance over one year showed a rise of 5 per cent versus the peer group’s loss of 7.1 per cent.
Over one and five years the fund is top of its IA sector.
Harries left in December to join Sebastian Lyon’s team at Troy Asset Management to develop its global equities offering. He is due to start over the summer.
Hutchison adds: “Mr Clay seeks growth in income and capital over the long term by investing in stocks with a dividend that is 25 per cent higher than that of the world equity index.
“This income discipline typically results in value style tilt and the longer-term nature of the thematic approach means that fund positioning and performance can differ meaningfully from that of global equity benchmarks.
“The fund is best suited to investors seeking a healthy yield premium relative to the asset class.”