Our Investment Committee has placed the Newton Growth fund under review, following news this morning that the fund is to be merged by BNY Mellon with the Newton Income fund.
The merger, which is subject to regulatory and shareholder approval, will see the fund renamed as Newton UK Equity.
It will be a UK equity fund that can invest in companies of all sizes and in any industry with a view to providing long-term capital growth and some income.
This announcement has prompted us to review the Newton Growth fund, which will be ‘soft closed’ to new investors from 1st October 2011.
We have determined that we will replace the Newton Growth fund in our model portfolios with an alternative fund to give investors suitable exposure to this sector.
Our comprehensive investment research process is designed to determine the most suitable funds for each of our recommended asset classes. It starts by screening the relevant IMA sector for various quantitative factors, before undertaking qualitative analysis to select the most suitable funds.
We will communicate this change to individual clients at their next annual reviews and have started to incorporate it within fund recommendations from today.
Do let your Financial Planner know if you have any questions.
Photo credit: Flickr/breahn
