| Newton European Higher Income Fund aims to deliver a gross target yield of 4-4.4%* along with increasing annual distributions to investors through an unconstrained portfolio of investments in companies across the European ex UK region.
The Fund employs the same style of strict yield discipline that underpins its sister funds in the Newton equity income fund range. Importantly, although benchmarked against the FTSE World Europe ex UK Index for performance purposes, the Fund employs the prospective yields of Europe’s underlying domestic equity markets as the trigger for its buy and sell disciplines. In order to qualify for inclusion in the portfolio a stock must offer a prospective yield that is 15% greater than that of its domestic equity market while any stock whose yield falls below that of its home market will be immediately sold.
The Fund’s strict yield discipline also ensures that not only do all portfolio holdings offer higher yields than the market, but that capital is constantly recycled from those stocks that have seen their valuations improve strongly to those with the greatest potential to do so.
Key Information
- An unconstrained, Europe ex-UK equity fund focused on high yield stocks
- 4% - 4.4% gross target yield at launch* with quarterly distributions
- Actively managed using Newton’s proven global thematic approach
- Aims to achieve increasing annual distributions with long-term capital growth
- Employs Newton’s proven approach to income investing using strict buy and sell criteria
- Stock selection and asset allocation within the Fund are driven by Newton's renowned thematic research process
- Buy discipline: All new holdings must have a prospective yield 15% greater than the yield of its domestic market
- Sell discipline: Any holding whose prospective yield falls below the yield of its domestic market will be sold
- Fund must yield 15% more than the yield of the FTSE W Europe ex UK Index
Source: Newton as at 30 April 2008
* Target yield is calculated gross of tax and charges
To invest in Newton European Higher Income Fund on behalf of your client now, follow the Invest Online link or download the application forms.
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