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Newton rethinks AMC in bid to bolster distribution

Newton has changed the way it deducts the annual management charge for its £911m income fund to bolster income distribution for shareholders.

From midnight on July 31, the group is to deduct the AMC from the capital of the fund rather than the income generated. The AMC will remain at 1.5 per cent.

Newton income has had a host of managers since Robert Shelton stepped down in 2002. Christopher Metcalfe has been managing the fund since April 2007 and it is top-quartile over three years in the IMA UK all companies sector, having ret-urned 0.9 per cent against an average fall of 17.1 per cent.

Hargreaves Lansdown senior analyst Meera Patel says: “I think Newton is keen to make the change from a treating customers fairly standpoint and it will look to boost income from 2.5 per cent to around 4 per cent.”


HSBC to close HFC Bank

HSBC has revealed that it will be shutting down its sub-prime high street lender, Beneficial Financial.


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