Newton is to launch a Managed Income fund to retail and institutional clients, giving investors a single port of call for access to strategies run by Tineke Frikkee, James Harries, Jason Pidcock and others.
The Newton Managed Income fund, which IFAonline's sister title Investment Week understands will launch on 28 May, will sit in the IMA Mixed Investment 20% to 60% Shares sector. It already has a four-year track record, having been run by Newton for Scottish Widows since March 2008.
Over that period, Managed Income has returned 34.5% versus an average return of 12.8% for the Mixed Investment 20-60% Shares sector, according to figures from Newton.
The fund's historic yield is 5.2%, though this does not take into account the lower projected yield from Newton Higher Income in current market conditions.
Managed Income holds at least 30% in fixed interest or cash alongside the 20-60% equity requirement, with at least 60% in US dollar, sterling and euro-denominated assets. Sterling-denominated assets form at least 30% of the portfolio.
Managed by Tim Wilson, the existing £50m fund had a 19% weighting in Harries' £2.5bn Global Equity Income fund, an 18.1% position in Pidcock's £1.8bn Asian Income fund and an 18.7% weighting in the £2.4bn Higher Income fund run by Frikkee (pictured) as of the end of March.
The portfolio also held an 18.9% weighting in both Parmeshwar Chadha's £115m Global High Yield fund and Paul Brain's £572.6m Global Dynamic Bond fund, with 11.4% in cash.
The fund will pay out quarterly, with an estimated total expense ratio of 1.4%, subject to the size of the fund at launch.
Wilson, head of strategy and asset allocation at Newton, will be supported by manager and strategist Paul Flood.
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From 6 April 2019