Newton Global Income Under Review Following Manager Exit

Fund analysts have put Newton Global Income Under Review following the departure of fund manager James Harries. The fund previously held a Silver Rating

Emma Wall 16 December, 2015 | 4:02PM
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Emma Wall: Hello and welcome to the Morningstar series "Ask the Expert." I'm Emma Wall and I'm joined today by Muna Abu-Habsa to talk about Newton Global Income.

Hi, Muna.

Muna Abu-Habsa: Hi, Emma.

Wall: So Morningstar fund analysts have put Newton Global Income Under Review. But before we go into that I thought perhaps you could remind readers why a fund is put under review.

Abu-Habsa: Sure. Well, under review is not a rating. It's a designation which means there has been a change on a rated fund and we need to review that change in order to assess the impact on the rating. In this case there has been a key manager change at Newton Global Income and also its Ireland-domiciled BNY Mellon Global equity income.

Wall: Now the fund previously held a Silver rating which is very high conviction. Why did we like the fund?

Abu-Habsa: James Harries had run the U.K.-domiciled fund since its launch in 2005. He has served investors commendably, amassed an attractive track record over an extended period and during some challenging times for income investors. Like most of Newton's funds this one also leverages the firm's thematic approach to investing. But James Harries, his income focus as well as his unconventional macro thinking meant that he at times deviated from the in-house stance and so actually that means he was instrumental to the running of both funds.

Wall: Now then what happens next because the fund, as you say, is under review, so where now?

Abu-Habsa: We'll be having further meetings with Nick Clay in order to understand how he plans to implement the income approach going forward. But more importantly so we can develop an understanding of how he will interpret the firm's themes and reflect them in the portfolio.

Wall: Muna, thank you very much.

Abu-Habsa: Thank you, Emma.

Wall: This is Emma Wall for Morningstar. Thank you for watching.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
BNY Mellon Global Income GBP Inc2.62 GBP0.71Rating

About Author

Emma Wall  is former Senior International Editor for Morningstar

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