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Newton launches Growth and Income Fund for Charities


Newton Investment Management, part of the BNY Mellon group, has launched the Newton Growth and Income Fund for Charities, a sub-fund of the UK umbrella unit trust, BNY Mellon Charities Funds.

The new fund was authorised as a Non-UCITS Retail Scheme (NURS) on 31 January 2014 and its target launch date is 9 May 2014.
Newton has managed client assets in the charities sector for over 25 years and is one of the largest charity investment managers.
In adopting the NURS structure, the new fund is regulated by the Financial Conduct Authority, reflecting recent sentiments voiced by the Charity Commission regarding regulatory oversight of charity investment funds.
The Newton Growth and Income Fund for Charities complements Newton’s existing dedicated charity fund range and aims to maximise investment returns through capital growth and income from a global portfolio primarily comprising equity and fixed interest securities.
It will be managed substantially in the same way as the existing Global Growth & Income Fund for Charities, a common investment fund (CIF) regulated by the Charity Commission, which will be closed, with unitholders in the CIF being offered an opportunity to exchange their units for those of the new fund. The new fund has a policy of making no direct investment in companies that derive more than 10 per cent of turnover from tobacco production.
Christopher Metcalfe, of Newton’s global multi-asset investment team, will act as lead manager of the new fund. Metcalfe has over 25 years’ investment experience, with nearly 10 years of experience at Newton managing multi-asset mandates for charity and pension fund clients.
The Newton Growth and Income Fund for Charities follows Newton’s global thematic investment approach, which integrates responsible investment considerations. The fund is benchmarked against a composite of indices, reflecting the main asset classes in which it invests: 50 per cent FTSE All Share Index, 25 per cent FTSE World ex UK (£) Index, 20 per cent FTA British Government All Stocks Index, and five per cent 7-day LIBID (cash). The fund will aim to deliver a minimum target income yield of three per cent per annum, although this is not guaranteed.
Alan Goodwin, head of charity and institutional account management at Newton, says: "This is an important development in our dedicated service provision for charity clients. We are offering a total-return solution for charities that is designed to support their requirements for specific income from their investments. We have a long-term track record investing multi-asset portfolios for charities, as demonstrated by the Global Growth & Income Fund for Charities, which was ranked the best performing fund in the WM Common Investment Fund survey (to 31 December 2013) over each of the one, five and 10-year periods. The Newton Growth and Income Fund for Charities is designed to build upon the legacy of its predecessor, providing a smooth transition into the new regulatory environment while retaining key features and aims. Our charity-specific funds reflect our commitment to providing the right solutions for our current and prospective clients.”
The fund is restricted to UK charity investors.

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