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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 £2,142m
Yield 4.1%
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%
Ongoing charges figure 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

This fund has generated strong long-term performance and provided an attractive yield. Nevertheless, considering the change to a team approach following the departure of the lead manager, Jason Pidcock, in May 2015, and some tweaks to the process, such as changing the yield target, we have proposed a switch rating for this fund. We do not believe that Newton Asian Income is a bad fund per se: it is run by the experienced in-house Newton Asian team. Nevertheless, considering both the team and process changes, our conviction in other alternatives is higher at present.

Portfolio

Allocation Proportion(%)
Equity 98
High yield bonds 0
Quality bonds 0
Property 0
Commodities 0
Hedge 0
Fund cash 2
Allocation Proportion(%)
UK 0
Europe 0
North America 0
Japan 0
Pacific 93
Other Equity 0
Allocation Proportion(%)
Large Caps 72
Mid Caps 25
Small Caps 3

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) 177.56p
Accum units 169.80p
Fund commentary 31/03/16
Fund data updated on 22/06/16

Asset allocation

Allocation Proportion(%)
Equity 98
High yield bonds 0
Quality bonds 0
Property 0
Commodities 0
Hedge 0
Fund cash 2

Equity Geographic

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

Equity Capitalisation

Allocation Propor
tion(%)
Large Caps 72
Mid Caps 25
Small Caps 3

Top 10 holdings

As at: 30/04/2016
5.7% Taiwan Semiconductor Manufacturing
4.66% Transurban Group
4.59% Telstra Corp Ltd
4.5% Amcor
3.87% Insurance Australia Group
3.81% Spark New Zealand Ltd
3.76% Link Real Estate Investment Trust Units
3.63% Singapore Telecommunications
3.47% Sands China Ltd
3.39% Meridian Energy Ltd
Source: Trustnet

Sector breakdown

Financials 31%
Industrials 21%
Telecommunications 18%
Utilities 9%
Technology 8%
Consumer Services 4%
Oil & Gas 3%
Basic Materials 2%
Money Market 2%
Consumer Goods 2%

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
11/12 12/13 13/14 14/15 15/16   3 years 5 years Career 3 years 5 years Career
1.19%   1.08%
Performance figures are based on the average of monthly percentage returns relative to the benchmark index.

Newton EM & Asia Team

Manager. Marshall-Lee leads the combined Global Emerging Markets and Asia Equities team at Newton Capital Management Limited. All seven members of this combined team include: Rob Marshall-Lee, Caroline Keen, Amy Leung, Sophia Whitbread, Naomi Waistell, Zoe Kan and Douglas Reed.

Track record

The track record of Newton EM & Asia Team 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 -16% (May 2015 - September 2015)
Relative -4% (August 2015 - December 2015)

Other funds managed

  Start Date
NEWTON ASIAN INCOMEMay 2015

Sector record since May 2015 (1 yr)




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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