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The aim is to achieve capital growth and income from a portfolio of predominantly UK equities, investing principally in larger companies, though small and mid-sized stocks may also be included. The yield on this fund is enhanced by deducting charges from capital. Newton follow a global thematic approach, which sets the framework for which sectors to invest in. This Fund may also invest up to 20% in overseas stocks.
|Sector||UK All Companies|
|Dividends paid||28 Feb, 31 May, 31 Aug, 30 Nov|
|Standard initial charge||0.00%|
|Initial charge via Bestinvest||0.00%|
|Additional bid/offer spread||0.00%|
|Annual management charge||1.50%|
|Total expense ratio||1.61%|
Before investing make sure you have understood the risks relevant to the fund by reviewing our Risk Warnings section. Further information on the risks are contained in the fund's Key Investor Information Document, which we make available to you before you make a decision to invest, alternatively it is available on request.
In recent years the fund has suffered from Newton's global house themes, which generally have been out of favour with prevailing markets, as well as inconsistency of fund manager tenure. Its most recent fund manager Richard Wilmot took control of the fund in March 2011. The fund is not rated by Bestinvest at present and investors looking for another income-biased UK equity growth style fund could consider JO Hambro CM UK Opportunities rated 5 stars or Old Mutual UK Alpha rated 4 stars.
|High yield bonds||0|
The fund generally invests in companies with a market cap above £1bn due to stock liquidity and availability, though small and mid-cap stocks may be included. Stock selection generally reflects Newton’s in-house thematic views and the portfolio is chosen from the recommendations of Newton's global sector analysts. As a result the portfolio may include overseas stocks where these stand out compared to their UK counterparts. However, whilst the manager is guided by the house view, he is allowed enough freedom to stamp his authority on the fund. Typically the manager would prefer growth stocks, i.e. stocks growing their earnings at an above average rate as well as their dividends. However, the fund manager can be quite flexible and not follow either a value or growth investment style exclusively; instead concentrating on investing in attractively valued stocks with good prospects and strong fundamentals. Companies with sound balance sheets are generally sought as well as companies with a good ability to generate above average returns from their invested capital base. Every stock has a predefined price target which is constantly reviewed through the regional, global and research meetings.
|Fund data updated on||27/02/15|
* This fund is part of our annual bonus scheme to which conditions apply. If you qualify for the bonus it will be paid on any holding of this fund that you have in your Investment, ISA or SIPP accounts.
|High yield bonds||0|
As at: 30/11/2014
4.13% Vodafone Group
4.1% British American Tobacco
3.72% Reed Elsevier
3.68% Prudential Plc
3.29% Astrazeneca Plc
2.99% Capita Plc
2.8% Standard Life Plc
2.6% Intermediate Capital Group
2.58% Playtech Plc
|Oil & Gas||3%|
The fund holds around 30-60 stocks.
Maximum 20% in overseas stocks. Long-term tracking error 2% to 6%. Maximum 5% in cash.
The portfolio usually has very little commonality with the benchmark and so performance can be expected to differ markedly on occasions.
|Average monthly relative returns||Bestinvest MRI|
|10/11||11/12||12/13||13/14||14/15||3 years||5 years||Career||3 years||5 years||Career|
|Performance figures are based on the average of monthly percentage returns relative to the benchmark index.|
Stephany joined Newton in 2005 from PWC where he was a corporate tax consultant. He joined the UK equity team as a trainee fund manager and took over leadership of the UK Smaller Companies fund in 2011. He is a CFA charterholder, a Member of the Institute of Chartered Accountants in England and Wales and has a BA (Hons) in Modern History from Oxford University.
The track record of Paul Stephany in managing mutual funds in this sector is still too short for us to draw any meaningful conclusions and so our assessment is based largely on qualitative aspects.
|Periods of worst performance|
|Absolute||-5% (May 2013 - June 2013)|
|Relative||-3% (March 2014 - July 2014)|
Our unique indicator: the Bestinvest Manager Record Index (MRI) measures the likelihood that the fund manager is adding value through their decisions. It is based on their performance record over the course of their career, adjusted for the amount of risk taken. MRI is an important contributor to our fund rating system but it is also vital to take account of qualitative factors. It is also very important to select funds to form a cohesive portfolio with an appropriate overall risk level.