Investors looking for income should consider the Newton Global Higher Income fund. Managed by James Harries since 2005, the fund is regularly tipped as one of the best for income investors. Right now it yields 4.6%. The fund has a good track record, earning it a four-star rating from fund research group Morningstar. It has beaten its sector over the last four years, and returned 37.8% last year.
Harries invests in large, reliable companies around the globe. “We invest like Warren Buffett. We look for stocks generating large amounts of cash but which are trading on low valuations. We try to avoid being distracted by day-to-day events and focus on what’s going to happen six months ahead,” he tells The Times.
Firms such as Reynolds, a tobacco firm, and mobile phone giant Vodafone, provide a regular, reliable income stream for the fund. Meanwhile, holdings in emerging markets, which make up around 30% of the portfolio, provide the possibility of decent long-term capital growth.
Harries is at “the forefront of the new breed of overseas equity funds which can generate a healthy yield”, says Nigel Walker of TQ Invest in The Daily Telegraph. The fund holds German telecom stock Deutsche Telekom AG, for example, which yields an enticing 7.8%.
“Newton have a strong team that looks globally for the best-yielding companies. This fund brings together all of those best ideas, and is a very suitable long-term equity income investment,” says Tim Cockerill of Aschcourt Rowan Asset Management, in The Daily Telegraph. The total expense ratio (TER) is 1.64%.
Contact: 0500-660000.
Newton Global Higher Income Fund top ten holdings
| Name of holding | % of assets |
|---|---|
| Reynolds American Inc | 3.9 |
| Vodafone Group | 3.2 |
| Deutsche Telekom AG | 3.1 |
| Zurich Financial Services | 3.0 |
| Deutsche Post AG | 2.9 |
| Advanced Info Service Public Co | 2.1 |
| Philip Morris International Inc | 2.1 |
| Telekomunikacja Polska | 2.1 |
| Link Real Estate Investment Trust Units | 2.1 |
| Tele Norte Leste Participacoes | 2.0 |