Changes to the Scottish Equitable Newton Global Higher Income and Scottish Equitable Newton Higher Income funds
On 1 April 2015, the names of the Scottish Equitable Newton Global Higher Income and the Scottish Equitable Newton Higher Income funds changed to: Scottish Equitable Newton Global Income Scottish Equitable Newton UK Income. This brings them into line with the names of the underlying Newton funds, which also changed on that date. In addition, Newton has removed the existing restrictions on the type of companies it can invest in.24 March 2015
Why has this change been made?
Since 2012, the number of company stocks available that meet Newton fund’s strict income yield restrictions has fallen dramatically, threatening the fund’s ability to be actively managed and achieve their income objectives. Only a few, very large companies have been offering levels of dividend income that meet the fund’s criteria in recent years, limiting the fund’s ability to diversify and actively manage the portfolios. By removing the income yield criteria, it will make it easier for each fund to fulfil their respective objectives of delivering increasing levels of income with long-term capital growth.
There is no change to the fund’s income objectives. This change simply removes the restrictions on what companies the fund managers can invest in.
The changes to the fund names are detailed below:
|Previous fund name prior to 1 April 2015||New fund name from 1 April 2015|
|Newton Global Higher Income fund||Newton Global Income fund|
|Newton Higher Income fund||Newton UK Income fund|
This change brings the names of the Newton Global Higher Income fund and Newton Higher Income fund more in line with other equity-income funds in Newton’s range, as well as other comparable funds in the same sector.
What current investors need to do?
Current investors don't need to do anything. Nothing else has changed - the investment objective, risk rating and charges remain the same.