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SCOTTISH WIDOWS NEWTON HIGHER INCOME S1 PF - Fund overview

Bestinvest rating 3 stars


Overview of SCOTTISH WIDOWS NEWTON HIGHER INCOME S1 PF

The fund’s objective is to increase dividend distributions on a calendar year basis and to achieve capital growth, primarily through investment in large and mid cap UK equities. Stocks are selected using strict yield criteria which have helped make the fund one of the highest income payers in the sector. The portfolio also reflects the input of Newton’s strategy team, who aim to identify long term economic themes.

Standard Initial Charge

No data available.

Fund summary

Sector  –
Product type  PENSION FUND
Launched  September, 2001
Size  £72m
Yield 0.0%
Charging basis  –
Dividends paid  –
Bid price 210.10p

Fund Charges

Standard Initial charge
Initial charge via Bestinvest
Additional bid/offer spread 5.02%
Annual management charge
Total expense ratio 0.00%
Reduction in yield (10yr) 0.51%

Bestinvest says


The fund’s yield was reduced in 2011 but it remains one of the highest dividend payers in the sector, boosted by strict yield criteria and selected use of covered call options. Though this is a UK fund, Newton’s analysts look at stocks globally, an important attribute when an increasing number of companies operate internationally. Both the fund manager and analysts benefit from themes identified by Newton’s strategy team – for instance, the team were negative on western banks well in advance of the 2008 financial crisis. This, in addition to the yield constraints, typically provide a degree of protection from falling markets but can lead to the fund underperforming strongly rising markets.

Portfolio

scottish widows newton higher income s1 pf asset allocation illustration
Allocation Proportion
Equity 97%
High yield bonds 0%
Quality bonds 0%
Property 0%
Commodities 0%
Hedge 0%
Fund cash 3%
scottish widows newton higher income s1 pf equity geographic illustration
Allocation Proportion
UK 100%
Europe 0%
Nth America 0%
Japan 0%
Pacific 0%
Other Equity 0%
scottish widows newton higher income s1 pf equity capitalisation illustration
Allocation Proportion
Large Caps 67%
Mid Caps 22%
Small Caps 11%

Investment process


The fund’s investment universe comprises all of the companies in the FTSE All Share, but in practice the portfolio is almost entirely made up of large and mid cap stocks due to liquidity. The universe is further restricted to around 150 companies by the fund’s strict yield criteria – only stocks yielding at least 15% more than the FTSE All Share can be included, whilst any portfolio company whose yield drops below that of the index must be sold.
The portfolio is partly derived from the Newton UK equity team’s model portfolio, which is in turn derived from the recommendations of Newton's London based global sector analysts. The fund will typically have 50-60% overlap with the UK model, with the remainder comprising other high yielding stocks in the universe selected by the fund manager. However, she will always research these in conjunction with the analyst team.
The entire 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.

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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