Fund Management

UK's Newton Investment Management Launches Charity Fund

Stephen Little, Reporter, London, 24 April 2014

articleimage

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.

London-based 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 will be regulated by the Financial Conduct Authority and was authorised as a non-UCITS retail scheme on 31 January 2014, with a target launch date of 9 May, BNY Mellon said in a statement.

Christopher Metcalfe, of Newton’s global multi-asset investment team, will manage the fund. Metcalfe has over 25 years of investment experience, with nearly 10 years at Newton managing multi-asset mandates for charity and pension fund clients.

The Newton Growth and Income Fund for Charities aims to maximise returns through a global portfolio primarily comprising equity and fixed interest securities. The fund will be managed in the same way as the existing Global Growth and Income Fund for Charities, a common investment fund regulated by the Charity Commission, which will be closed, with unitholders being offered an opportunity to exchange their units for those of the new fund.

Newton said that the fund is restricted to UK charity investors and makes no direct investment in companies that derive more than 10 per cent of turnover from tobacco production.

It is benchmarked against the FTSE All Share Index, the FTSE World ex UK (£) Index, the FTA British Government All Stocks Index, and the seven day London Interbank Lending Rate.

“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,” said Alan Goodwin, head of charity and institutional account management at Newton.

Register for WealthBriefing today

Gain access to regular and exclusive research on the global wealth management sector along with the opportunity to attend industry events such as exclusive invites to Breakfast Briefings and Summits in the major wealth management centres and industry leading awards programmes