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Objective
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The Fund aims to generate capital growth and income growth in excess of inflation (as measured by the Consumer Price Index) plus 4% per annum (after fees have been deducted) over the long term (rolling 10-year periods).
There is no guarantee that the Fund will achieve its investment objective or that a positive return will be delivered over any time period and capital is at risk.
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Performance benchmark
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The Newton Growth and Income Fund for Charities (CAIF) uses the following two measures as appropriate benchmarks for comparison:
Primary benchmark: Over rolling 10-year periods (meaning a period of 10 years, no matter which day you start on), the Fund will measure its performance after fees against inflation (as measured by the Consumer Price Index) plus 4% per annum. The Consumer Price Index (CPI) is the main measure of inflation in the UK and tracks the average change from month to month in the prices of goods and services purchased by most UK households. This comparator is considered appropriate as it is representative of the target return of the Fund.
Secondary benchmark: As a secondary comparator, the Fund will measure its performance against a mixed (composite) index which comprises 55% FTSE World ex UK Total Return Index, 20% FTSE All-Share Total Return Index, 20% FTSE Actuaries UK Conventional Gilts All Stocks Total Return Index and 5% 7-Day Compounded SONIA. The FTSE World ex UK Total Return Index represents the performance of company shares from developed and advanced emerging markets excluding the UK. The FTSE All-Share Total Return Index tracks the performance of company shares listed on the London Stock Exchange and is representative of the UK equity market. The FTSE Actuaries UK Conventional Gilts All Stocks Total Return Index measures the performance of sterling-denominated UK government fixed income securities (gilts). SONIA (Sterling Overnight Index Average) is the average interest rate banks pay to borrow pounds sterling overnight and is used as a proxy for the return on cash deposits. The 7-day rate is calculated by compounding the daily SONIA rates throughout the previous 7-day period. This comparator is considered appropriate because it includes a broad representation of the asset classes, sectors and geographical areas in which the Fund predominantly invests.
As an actively managed fund, the Investment Manager can make investment decisions (whether to buy, sell or hold assets) at its discretion. These decisions are made in line with the Fund’s objective and investment policy as disclosed in the Prospectus.
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Fund structure
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The Fund is a non-UCITS retail scheme (NURS) within a Charity Authorised Investment Fund (CAIF) structure. The CAIF is a dual-regulated vehicle and a registered charity. It is subject to ongoing oversight by the Charity Commission in addition to the Financial Conduct Authority (FCA). Being formally registered as a charity means that any income or gains distributed by the CAIF flow through to participating charities without being subject to further tax. In addition, the Fund’s annual management charge is not currently subject to VAT.
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Literature
Strategy highlights
- A cost-effective method of gaining global exposure to equities and fixed income securities
- Aims to achieve a balance between capital growth and income
- Security selection driven by bottom-up proprietary research which is underpinned by our multidimensional approach
- The Fund is recognised as a charity for UK tax purposes, meaning that income or gains can flow through to participating charities without being subject to further tax
Investment team
The Fund is managed by an experienced team with a wide range of backgrounds. In-house research analysts are at the core of our investment process, and our multidimensional research capabilities help to promote better-informed investment decisions.
Want to find out more?
Your capital may be at risk. The value of investments and the income from them can fall as well as rise and investors may not get back the original amount invested.
You should read the Prospectus and the Key Investor Information Document (KIID) for each fund in which you want to invest. The Prospectus and KIID can be found in the literature section above.
Tax treatment depends on the individual circumstances of each client and may be subject to change in the future. Newton is not a tax expert and independent tax advice should be sought.
The Newton Growth and Income Fund for Charities (CAIF) is a unit trust authorised by the Financial Conduct Authority as a non-UCITS retail scheme and is operated by BNY Mellon Fund Managers Limited (BNY MFM).
Key investment risks
- Objective/performance risk: There is no guarantee that the Fund will achieve its objectives.
- Currency risk: This Fund invests in international markets which means it is exposed to changes in currency rates which could affect the value of the Fund.
- Geographic concentration risk: Where the Fund invests significantly in a single market, this may have a material impact on the value of the Fund.
- Derivatives risk: Derivatives are highly sensitive to changes in the value of the asset from which their value is derived. A small movement in the value of the underlying asset can cause a large movement in the value of the derivative. This can increase the sizes of losses and gains, causing the value of your investment to fluctuate. When using derivatives, the Fund can lose significantly more than the amount it has invested in derivatives.
- Changes in interest rates & inflation risk: Investments in bonds/money market securities are affected by interest rates and inflation trends which may negatively affect the value of the Fund.
- Credit risk: The issuer of a security held by the Fund may not pay income or repay capital to the Fund when due.
- Charges to capital risk: The Fund takes its charges from the capital of the Fund. Investors should be aware that this has the effect of lowering the capital value of your investment and limiting the potential for future capital growth. On redemption, you may not receive back the full amount you initially invested.
- Counterparty risk: The insolvency of any institutions providing services such as custody of assets or acting as a counterparty to derivatives or other contractual arrangements, may expose the Fund to financial loss.
- Emerging markets risk: Investments in emerging markets (developing economies) have additional risks. This is due to these countries having less developed market practices.