Christopher Metcalfe has been appointed lead manager on the £2bn Newton Higher Income Fund, replacing head of equities Richard Wilmot, who will also continue to lead on Newton UK Equity and remains as alternate portfolio manager on Newton UK Opportunities, with Paul Stephany as lead.
Metcalfe is currently manager on Global Growth & Income Fund for charities and the Newton Managed Fund.
In short, Wilmot will be running the growth book while Metcalfe focuses on the income portfolio.
According to FE, the fund has underperformed its peer group over three years, returning 35.5% over three years, against the IMA UK Equity Income sector's 42%.
Strategic review
The global equity boutique, part of the BNY Mellon stable, undertook a strategic review in which its growth and income investment books would be kept distinct, referred to internally as “active equity” and “equity income” within the pooled funds. Newton had already taken this approach with its Global Equity and Emerging Equity funds, with the strategy now applied across the range.
Simon Pryke, CIO at Newton, said: “The Newton Higher Income Fund is now structured as we envisaged following the change to the yield discipline in 2013 and under Christopher’s new leadership on the fund, we believe that it is positioned to perform well. Christopher currently manages a range of portfolios with an income requirement and he has extensive experience in managing UK and global equity portfolios."
Keen to support Pidcock
Elsewhere, Caroline Keen has been promoted to lead portfolio manager on the £365m Newton Oriental Fund.
She has been supporting Jason Pidcock as co-fund manager on Newton Oriental since 2013 and has been a member of the group’s Asian equities team since 2009. Pidcock has run the fund for almost a decade.
Pryke added: “We are confident that by promoting Caroline to lead manager of the Newton Oriental Fund, our investors will benefit from her portfolio leadership. Jason Pidcock will be the alternate portfolio manager."
This fund has also lagged its benchmark over a three-year period, delivering 5.3% compared with its IMA Asia Pacific ex Japan peer group's 9.2%.
