Bestinvest says
In recent years the fund has suffered from Newton's global house themes, which generally have been out of favour with prevailing markets as well as consistency of fund manager tenure. It's most recent fund manager Richard Wilmot took control of the fund in March 2011. The fund is not rated by Bestinvest at present and investors looking for another income-biased UK equity growth fund style fund could consider JO Hambro CM UK Opportunities rated 5 stars by Bestinvest.
The fund aims to achieve capital growth and income from a portfolio of predominantly UK equities. The performance target is 2% pa above the FTSE All Share on a 5-year rolling basis. The fund generally invests in companies with a market cap above £1bn due to stock liquidity and availability, though small and mid cap stocks may be included. Stock selection generally reflects Newton’s in-house thematic views and the portfolio is chosen from the recommendations of Newton's global sector analysts. As a result the portfolio may include overseas stocks where these stand out compared to their UK counterparts, such companies are often targeted so as to enhance yield. However, whilst the manager is guided by the house view is is allowed enough freedom to stamp his authority on the fund. Typically the manager prefers growth stocks, i.e. stocks growing their earnings at an above average rate as well as their dividends. Companies with sound balance sheets are generally sought as well as companies with a good ability to generate above average returns from their invested capital base.