Proposals to rename the fund Newton Global high yield Bond, managed by Parmeshwar Chadha, were approved by shareholders at an extraordinary general meeting yesterday.
It will now move from the Investment Management Association’s (IMA) global bond sector to the £ high yield peer group.
The revised investment objective will see the fund aiming to generate yield from a globally diversified portfolio, which may include fixed interest bonds and derivatives.
At least 80 per cent of the fund’s assets must either be in sterling or hedged back to sterling, in line with the requirements of the IMA £ high yield sector.
Newton says the aim of the mandate change is to grow the fund’s assets by making it a more compelling proposition to the British market. At present it has £22m under management.