Bestinvest says
Newton Global Higher Income is one of the longest running international equity income funds and also one of the best. Both the analysts and managers on the fund look at stocks globally, an important attribute when an increasing number of companies operate internationally. Stock selection also benefits from the inclusion of long-term economic trends, such as the growth of emerging markets, identified by Newton's strategy group. The fund suits income-focused investors looking to diversify their equity exposure away from the UK. The income orientation tends to give the fund defensive characteristics in falling markets so it may also appeal to more cautious investors.
Stocks in the portfolio are derived from the Research Recommended List, a portfolio selected by Newton's London based analysts. Each analyst specialises in a specific industry, and compares companies worldwide operating in that industry. Newton's team of global fund managers adapt the analysts' list into an idealised model portfolio which represents their best ideas. This is then further adapted by the manager of Newton Global Higher Income to reflect the fund’s restrictions and risk tolerances - stocks can only be bought when their yield is 25% above that of the FTSE World index, and any stock whose yield falls below that of the index is sold. The stock selection process is informed by Newton's strategy group, which attempts to identify long term trends such as the credit boom. Analysts and managers focus their research on companies which will benefit from these trends.