Newton launches growth fund for charities

Newton Investment Management, part of BNY Mellon, has announced the launch of the Newton Growth Fund for Charities, a sub-fund of the new UK umbrella unit trust BNY Mellon Charities Funds.

The fund underscores Newton’s commitment to the UK charities sector, in which it has managed client assets for over 25 years and is one of the largest charity investment managers, as judged by Charity Finance.

The Newton Growth Fund for Charities complements Newton’s existing dedicated charity fund range and aims to maximise investment returns through capital growth and income from a global portfolio primarily comprising of equity and fixed interest securities. The fund has a policy of making no direct investment in companies that derive more than 10% of turnover from tobacco production and it does not have an income target.

The lead portfolio manager of the fund is Simon Nichols of Newton’s global multi-asset investment team. Nichols has over 18 years’ investment experience with 12 years of experience at Newton managing flagship multi-asset mandates for pension fund clients, including the Newton Exempt Fund, one of the longest running multi-asset fund in the industry.

The Newton Growth Fund for Charities follows Newton’s global thematic investment approach, which integrates responsible investment considerations. It is benchmarked against a composite of indices, reflecting the main asset classes in which it invests: 37.5% FTSE All Share Index, 37.5% FTSE World ex UK (£) Index, 20% FTA British Government All Stocks Index, and 5% 7-day LIBID (cash).

Alan Goodwin, head of charity and institutional account management at Newton, commented: “This is an important development in our dedicated service provision for charity clients. We are offering a total-return solution for charities that do not require a specific income from their investments.”

The fund is restricted to UK charity investors. It has a minimum initial investment of £5,000 and an annual management charge of 0.60% p.a., which does not attract VAT.

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