UK- Newton Fund Managers, UK asset management subsidiary of Mellon Financial, has launched an exempt equity alpha fund aimed at UK institutional pension schemes.

The launch of the new fund now takes Newton’s exempt pooled fund range to 13, all aimed at institutional investors and pension funds looking for more specialist investments.

A “higher income” strategy will be applied to the fund. This involves investing in companies that yield more than the FTSE All-Share Index. Stocks whose yield falls below that of the market will immediately be sold. A team of 17 analysts also research the financial stability of companies invested in by Newton.

The fund will be managed by Tineke Frikkee and is open to both domestic and overseas pension funds.

Says Frikkee: “we have already seen overseas pension funds participating, and now the fund has £4m invested in it. The aim is to increase this to £30m within the year.”

The fund currently yields around 5%, which should increase to 6%-8%.

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