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Bestinvest rating
NEWTON ASIAN INCOME

NEWTON ASIAN INCOME - Overview

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 0.00%
  • Initial charge via Bestinvest 0.00%

Fund summary

Sector Asia Pacific Excluding Japan
Structure OEIC
Launched November, 2005
Size £4,959m
Yield 4.7%
Charging basis Capital
Dividends paid Feb, May, Aug, Nov

Charges

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 1.64%

Risks

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.

Bestinvest view

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

Allocation Proportion(%)
Equity 96
High yield bonds 0
Quality bonds 0
Property 0
Commodities 0
Hedge 0
Fund cash 4
Allocation Proportion(%)
UK 7
Europe 0
North America 0
Japan 0
Pacific 93
Other Equity 0
Allocation Proportion(%)
Large Caps 77
Mid Caps 23
Small Caps 0

View all performance data for this fund

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.

Live feed

Bid price(inc) 173.64p
Accum units 173.64p
Fund commentary 06/09/11
Fund data updated on 17/12/14

* 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.

Asset allocation

Allocation Proportion(%)
Equity 96
High yield bonds 0
Quality bonds 0
Property 0
Commodities 0
Hedge 0
Fund cash 4

Equity Geographic

Allocation Proportion(%)
UK 7
Europe 0
North America 0
Japan 0
Pacific 93
Other Equity 0

Equity Capitalisation

Allocation Propor
tion(%)
Large Caps 77
Mid Caps 23
Small Caps 0

Top 10 holdings

As at: 30/09/2014
3.52% Transurban Group
3.08% Taiwan Semiconductor Manufacturing
3.02% Telstra Corp Ltd
2.88% Wesfarmers
2.78% Woodside Petroleum
2.72% Sands China Ltd
2.7% Philippine Long Distance Telephone
2.67% Hsbc Hldgs
2.62% Scentre Group Trust 1 Stapled Securities
2.58% Amcor
Source: Trustnet

Sector breakdown

Financials 30%
Industrials 19%
Telecommunications 16%
Oil & Gas 10%
Consumer Services 9%
Technology 5%
Utilities 5%
Basic Materials 4%
Money Market 1%
Consumer Goods 1%

Portfolio details

40-50 stocks.

Constraints

No specific market cap bias or sector limits. Fund must yield more than 35% higher than the benchmark and stocks yielding more than 15% under the benchmark must be sold
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
09/10 10/11 11/12 12/13 13/14   3 years 5 years Career 3 years 5 years Career
0.60% 0.40% 0.19% -0.50% 0.19%   -0.04% 0.18% 0.07% 61.30% 95.30% 93.30%
Performance figures are based on the average of monthly percentage returns relative to the benchmark index.

Jason Pidcock

Manager. Pidcock joined Newton from BP Investment Management where he was responsible for over $700m of the BP Pension Fund invested in Australia, China, Hong Kong and South East Asia. At BP he was jointly responsible for asset allocation within the Asia-Pacific region, and a member of the team deciding regional allocation within the BP Pension Fund. He began his career in 1993 at Henderson Global Investors where he was part of a team covering the Pacific ex-Japan region.

Track record

Jason Pidcock has 10.3 years experience of managing mutual funds in this sector. Over this period the average monthly return relative to the benchmark index has been +0.07%. During the worst period of relative performance (from February 2009 - September 2009) there was a decline of 10% relative to the index. The worst absolute loss has been 40%. Statistically, we estimate the probability that this fund manager is adding value, rather than being lucky, is 93%.

Periods of worst performance
Absolute -40% (October 2007 - October 2008)
Relative -10% (February 2009 - September 2009)

Other funds managed

  Start Date
NEWTON ASIAN INCOMENov 2005

Sector record since August 2004 (10 yrs)




About the MRI

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.

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