View more on these topics

Newton plugs into tech market

Newton plugs into tech market

Newton European High Yield Bond Fund

Type: Unit trust fund of funds.

Aim: Growth by investing in technology funds.

Minimum investment: £1,000.

Investment split: 15 per cent Aberdeen technology, 15 per cent Henderson technology, 10 per cent Scottish Equitable technology, 10 per cent Mercury global titans, 10 per cent GT dynamic theme, 10 per cent Sarasin websar, 5 per cent Framlington health, 5 per cent Schroder medical discovery, 5 per cent Gartmore tech ternado, 5 per cent Framlington net net, 5 per cent Finsbury universal life sciences, 5 per cent Invesco European growth.

Yield: Nil.

Isa link: Yes.

Pep transfers: Yes.

Charges: Initial 3.5 per cent, annual 1.5 per cent.

Commission: Initial 3 per cent.

Tel: 01225 469424.

Keith Lewis, proprietor, Hartley Greatbatch, Robert Graham, associate partner, Scottish Financial Independence Group, Glyn Roberts, principal, Glyn Heulyn & Co, Alison Gaunt, partner, Gaunt Hall Independent Financial Advisers.

Suitability to market 7.8

Investment strategy 7.3

Past performance 7.0

Company’s reputation 8.3

Charges 7.0

Commission 7.3

Product literature 7.3

Newton Fund Managers has introduced the European high yield bond fund, an open ended investment company that invests in European high yield corporate bonds.

Looking at the product’s suitability to the market, Roberts says: "This fits well into a somewhat crowded market, with many corporate bond funds being launched over the last 18 months, many looking outside the UK to get exposure to European telecommunication corporate bonds."

Gaunt says: "The fund offers higher potential income, but possibly also higher risk than some established funds. Therefore this product adds to the choice available to clients."

Graham says: "There are not many funds offering high yields on European bonds. Framlington, M&G and Henderson are the only similar ones. It is at the riskier end of the market in terms of capital maintenance."

Turning to the type of client at the product is suitable for, Lewis says: "This is for clients seeking income that can be paid monthly and who find a yield of 9.45 per cent a year attractive."

Graham says: "The product is for the client who is aiming for very high income from a proportion of their capital and who is willing to take some capital risk."

Roberts adds: "It is suitable for the older client who requires a high level of income and is prepared to look at the investment over a long period. Also it is for a client who is willing to take some risk with their capital in order to gain a very high level of income and one that is convinced that interest rates are not going to rise significantly in the Euro zone in the next few years."

Gaunt feels that the fund is for: "Those requiring a higher level of income, who are willing to take some risk with the underlying investment and who have had the downside clearly explained to them."

Evaluating the marketing opportunities that the product provides, Graham says: "If we suppose that the Euro must eventually strengthen, this could be a good entry to European bonds. The market is growing and broadening rapidly and could be very rewarding."


Royal Scottish fined £2m as borrowers face shortfalls

The PIA has hit Royal Bank of Scotland subsidiary Royal Scot tish Assurance with a £2m fine – its biggest to date – for using the wrong calculation for mortgage endowment premiums during the early 1990s. It also faces paying a further £50m in compensation to make up shortfalls on policies sold during this time. […]

More than a third of B&B members opt to sell shares

Bradford & Bingley has reported that 38.5 per cent of members have opted to sell their shares when the bank floats next week. Members of B&B voted in April to list the company but reserved the right to keep their 250 shares or sell them in an institutional auction. Chief executive Christopher Rodrigues says:”Thirty-eight per […]

FSA calls for clearer investment information

The FSA has published proposals to clarify the information which companies give to consumers about investments. The regulator wants the key documents describing risks, benefits and charges to be written in plain and simple English. It also wants consumers to be able to find the documents easily amid the marketing leaflets which companies send. It […]

Driving forces of the industry

The financial services industry may not be perceived by the outside world as being driven by strong personalities. The rows of dark suits visible at any industry conference are a testament to that. Yet the shockwaves sent through the industry whenever a leading figure leaves an organisation shows that personality must be a driving factor […]


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm