Wealth Manager - the site for professional investment managers

Register to get unlimited access to Citywire’s fund manager database. Registration is free and only takes a minute.

Newton restructure sees Frikkee lose Higher Income fund

Newton restructure sees Frikkee lose Higher Income fund

Newton Investment Management’s Richard Wilmot is taking over the reins of the firm’s Higher Income fund leaving current manager Tineke Frikkee facing an uncertain future.

Frikkee is in discussions about her role at the company after being taken off the fund which she has managed since 2004.

The news comes as the firm announces a raft of fund mergers and following a significant shift by investors away from UK equities.  

Simon Pryke, chief investment officer at Newton, said: 'We believe the UK equity team, under Richard’s leadership and working closely with our 17-strong global sector research analysts, will be well positioned to continue to successfully manage our UK equity portfolios going forward.'

Recent months have proved challenging for Frikkee and her Higher Income fund, and October saw the manager raise cash to a record level on fears quantitative easing would have little impact.

Over three years she sits in 66th position out her 97 peers in the UK equity income sector, according to Citywire data.

Announcing the changes, Newton said it is consolidating its product offering in UK equities as investors shift away from these towards global stocks, fixed income and absolute return.

The firm merged the Newton Income, Newton Growth and Newton UK Equity funds into a single vehicle and redeployed resources to other areas of the firm to take account of this shift.

Under the last three years of Frikkee's rein, the Newton Higher Income fund, formerly in Citywire Selection, has delivered 26% versus a 29.8% rise in the FTSE All Share TR index.

Newton acknowledged that the environment has been difficult for investing in higher yielding stocks of late, and in the UK the number of attractive higher yielding equities available to investors has shrunk.

In an attempt to mould the fund to this new landscape, Newton said it will look to reduce the fund’s yield over the next 18 months, with the aim of meeting at least a 10% premium per annum to the FTSE All Share yield over rolling three-year periods.

These changes should allow the dividend to grow over the long-term from this new level and provide an attractive total return to investors.

'We are confident that going forward the Newton Higher Income fund will achieve both a premium income and an attractive total return in the long run, in line with what we aim to achieve with the rest of our equity income funds,' Pryke added.

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.

Related Fund Managers

Tineke Frikkee
Tineke Frikkee
37/83 in Equity - UK Equity Income (Performance over 3 years) Average Total Return: 40.20%
Richard Wilmot
Richard Wilmot
Citywire TV
Play Biotech Growth: we will ride out this storm

Biotech Growth: we will ride out this storm

Geoffrey Hsu of Biotech Growth Trust says the sell-off in biotechnology stocks represents a buying opportunity for long-term investors.

Play Picton: the UK property hotspots for rental income

Picton: the UK property hotspots for rental income

Picton Property Income CEO Michael Morris reveals how he is planning to ride the ‘ripple effect’ as UK economic growth spills out from the capital across the country.

Brewin's Foster talks financial crisis MkII with Allianz's Riddell

Brewin's Foster talks financial crisis MkII with Allianz's Riddell

This week Brewin Dolphin's head of research talks to Mike Riddell, fund manager at Allianz Global Investors, about the forces driving bonds markets in a tumultuous week for markets.

Your Business: Cover Star Club

Profile: PortfolioMetrix is on a mission to kill 'Frankenstein' systems

Profile: PortfolioMetrix is on a mission to kill 'Frankenstein' systems

In a buyers’ market for off-the-peg discretionary management, self-funded start-ups begin at an inherent disadvantage

Wealth Manager on Twitter