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NEWTON ASIAN INCOME - Fund overview

Bestinvest rating 4 stars


Overview of NEWTON ASIAN INCOME

This fund invests throughout Asia (excluding Japan) and Australasia with the aim of a high and rising income together with capital growth. The target yield is 35% above that of the index. The process is similar to that of other Newton equity income funds, employing a strict yield discipline and feeding off trends such as Asian urbanisation identified by Newton's top-down strategic process.

Standard Initial Charge

4.00% 0.00%

Invest via Bestinvest

to save 4.00%

Fund summary

Sector  Asia Pacific Excluding Japan
Product type  OEIC
Launched  November, 2005
Size  £1,821m
Yield 5.2%
Charging basis  Capital
Dividends paid  Feb, May, Aug, Nov
Bid price 160.97p

Fund Charges

Standard Initial charge 4.00%
Initial charge via Bestinvest 0.00%
Additional bid/offer spread 0.00%
Annual management charge 1.50%
Total expense ratio 1.66%
Reduction in yield (10yr) 1.66%

Bestinvest says


The manager, Jason Pidcock, offers a consistently high yield in excess of 5% due to the stringent income targets, and has a consistently strong record over several years. Relative to the peer group, the fund has a bias towards the more developed economies of Australia, Singapore and Taiwan, whilst being significantly underweight in China and South Korea. In this regard, the fund can be considered relatively conservative in its approach, but this has served the manager well in the past and there is every reason to expect good things from this fund.

Portfolio

newton asian income asset allocation illustration
Allocation Proportion
Equity 100%
High yield bonds
Quality bonds
Property
Commodities
Hedge
Fund cash 1%
newton asian income equity geographic illustration
Allocation Proportion
UK
Europe
Nth America
Japan
Pacific 95%
Other Equity 5%
newton asian income equity capitalisation illustration
Allocation Proportion
Large Caps 71%
Mid Caps 23%
Small Caps 6%

Investment process


The fund aims to achieve a high and rising income together with long-term capital growth primarily through investments in securities in the Asia ex Japan region (including Australia and New Zealand). As with other Newton equity income funds strict yield criteria apply to all securities in the portfolio. Stocks are identified that initially pay a prospective yield in excess of that of the reference benchmark, the FTSE AW Asia Pacific ex Japan Index. This reduces the investment universe from over 1,500 stocks to around 600. Any stock whose yield falls to a 15% discount to the benchmark will be sold. The manager identifies stocks that offer an attractive yield, and also those that are in a position to significantly grow their dividend over the medium-to-long term.

The value of your investments and the income from them can go down as well as up, and you can get back less than you originally invested. Past performance or any yields quoted should not be considered reliable indicators of future returns. Before investing in funds please check the specific risk factors on the key features document or refer to our risk warning notice as some funds can be high risk or complex; they may also have risks relating to the geographical area, industry sector and/or underlying assets in which they invest. Prevailing tax rates and relief are dependent on your individual circumstances and are subject to change.

Bestinvest (Brokers) Ltd & Bestinvest (Consultants) Ltd are authorised and regulated by the Financial Services Authority. This site is for UK Investors only

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