The former is a fund-of-funds which invests primarily in Newton funds. Its manager Tim Wilson will remain with the company to work on institutional mandates.
The Newton Multi-Asset Income Fund launched in February 2015 is co-managed by Paul Flood and Nick Clay. It currently has around £15m invested in in a diversified portfolio including directly held equities, directly held bonds, alternatives including indirect exposure to property, infrastructure, private equity, convertibles, commodities and renewables, and derivatives.
The company has notified shareholders and the changes are expected to take effect on 23 April 2016, subject to approval at a meeting on 14 April.
The move stems from Newton’s ongoing drive to simplify its multi-asset range and streamline costs, for investors, according to head of UK and Ireland intermediary distribution Fergus McCarthy.
“It is very noticeable that there is a lack of funds of funds appearing toward the top of sales tables as investors become more aware of costs,” he said. “Merging this fund with the multi asset fund means the money will be directly invested, lowering the total costs for clients and providing a better outcome.”
McCarthy also noted that the recent pension drawdown rule changes have increased demand for multi-asset offerings such as this.
