fund
BNY Mellon Global Income Institutional W
Targets a growing income and capital growth from a globally diversified portfolio of equities.
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188.09p
Price (Inc)
These are the shares in the fund that pay out an income to clients. The income is made up of the total dividends – the money a company can pay out to its investors – from the companies in the fund.
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252.71p
Price (Acc)
These are the shares in the fund that don’t pay out an income to clients. Any dividends – the money a company can pay out to its investors – are reinvested into companies in the fund. Despite no income, the shares should be worth more over time. Good incentive, eh?
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0.00%
Initial chargeSome funds charge you when you first invest, which is aptly known as the initial charge. They’re usually between 3-5% but at Bestinvest, we usually don’t charge you a penny!
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0.75%
Annual management charge
This is how much the fund management company charges to run the fund. It’s like paying a babysitter, dog sitter or house sitter (that makes well-informed, heavily researched changes to improve your baby/dog/house when needed).
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0.80%
Ongoing charges
This stands for Ongoing Charges Figure. It’s the cost of running a fund and includes admin fees, manager fees, administration costs, etc.
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2.60%
Yield
How much the fund is currently paying out in income to investors. It’s NOT to be confused with the overall growth of a fund – a very different thing indeed. It’s also NOT a guarantee of future pay-outs, just a snapshot. This is more what it’s not than what it is…
The fund targets increasing annual distributions together with long-term capital growth by investing predominantly in equities worldwide. Manager Nick Clay invests in large and mid-sized companies that meet his strict yield criteria, combining the recommendations of Newton's global sector analysts with high income ideas selected by his team. The portfolio will also reflect themes such as deleveraging identified by Newton’s strategy group.
Fund summary
| Sector | Global Equity Income |
| Structure | OEIC |
| Launched | September, 2012 |
| Size | £3,493m |
| Yield | 2.60% |
| Charging basis | Capital |
| Dividends paid | 28 Feb, 31 May, 31 Aug, 30 Nov |
Charges
| Standard initial charge | 0.00% |
| Initial charge via Bestinvest | 0.00% |
| Additional bid/offer spread | 0.00% |
| Annual management charge | 0.75% |
| Ongoing charges figure | 0.80% |
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Investment process
Stocks in this fund must meet strict income criteria: companies can only be bought when their yield is 25% above that of the FTSE World index, and any stock whose yield falls below that of the index is sold. Ideas are primarily derived from the Research Recommended List, a portfolio selected by Newton's London-based analysts. Each analyst specialises in a specific industry, and compares companies worldwide operating in that industry. However, because only a fraction of these recommendations meet the fund’s yield requirement, the three-strong global income team supplement them with ideas sourced themselves or from Newton’s regional income teams. The stock selection process is informed by Newton's strategy group, which attempts to identify long term trends such as the fallout from the credit boom. Analysts and managers focus their research on companies which will benefit from these trends.
This is one of the longest running international equity income funds with a defensive investment approach. The fund aims to provide income and long-term capital growth by investing primarily in large and mid-sized global equities. The former lead manager James Harries left Newton in December 2015 year, having been managing the fund since inception in 2005, to pursue an opportunity at Troy Asset Management, a macro orientated boutique. Nick Clay, a co-manager on the strategy since 2012, assumed lead management responsibilities for the fund following Harries’ departure. Harries was instrumental in constructing the portfolio based on the in-house themes and his macro outlook – an area where Clay has less experience. However, the fund’s philosophy and process remain unchanged and the remainder of the team is intact.
Manager research
Average monthly relative returns
- 16/17 -0.07%
- 17/18 0.82%
- 18/19 -0.24%
- 19/20 -1.07%
- 20/21 -0.22%
Bestinvest MRI
- 3 years -0.51%
- 5 years -0.16%
- Career -0.04%
- 3 years 50.00%
- 5 years 50.00%
- Career 69.90%
Performance figures are based on the average of monthly percentage returns relative to the benchmark index.
Nick Clay
Clay joined Newton in 2000. Prior to this he joined Sun Alliance in 1991, working as an investment manager on the UK Equity team. He moved to Provident Mutual Investment Managers in 1994 (which became Morley Fund Management). Clay graduated in 1990 with a BA in Economics and Philosophy and is a UKSIP member.
Track record
Nick Clay has 6.6 years experience of managing mutual funds in this sector. Over this period the average monthly return relative to the benchmark index has been -0.04%. During the worst period of relative performance (from February 2008 - February 2011) there was a decline of 17% relative to the index. The worst absolute loss has been 33%.
Periods of worst performance
| Absolute | -33.00% (December 2007 - February 2009) |
| Relative | -17.00% (February 2008 - February 2011) |
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.
Allocation
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Top 10 holdings
Data accurate as at 31 July 2020
| 5.69% | Cisco Systems Inc |
| 5.24% | Qualcomm Inc |
| 3.95% | Unilever |
| 3.75% | Pepsico Inc |
| 3.54% | Infosys |
| 3.42% | Zurich Insurance Group |
| 3.39% | Samsung Electronics Co |
| 3.17% | Sanofi |
| 3.08% | British American Tobacco |
| 3.04% | Maxim Integrated Products |
| Source: Trustnet |
Sector breakdown
| Consumer Goods | 22.00% |
| Technology | 21.00% |
| Health Care | 16.00% |
| Financials | 14.00% |
| Consumer Services | 8.00% |
| Industrials | 7.00% |
| Utilities | 5.00% |
| Telecommunications | 4.00% |
| Money Market | 2.00% |
| Oil & Gas | 2.00% |
Portfolio
The portfolio typically consists of 60 to 80 stocks, and may include convertibles. Commonality with other Newton global funds is high. Currency hedging can be used, most commonly to hedge back an underweight to the US dollar.
Constraints
There are no fixed sector, market or country limits. Individual holdings will not typically exceed 5%.