Newton's Frikkee backs Pru over Standard Life

Newton's star income manager Tineke Frikkee has opened a position in Prudential following a leap of 27% in its final dividend.

She trimmed exposure to Standard Life in the £2.7bn Newton Higher Income fund to make room for Prudential, although she has maintained a neutral position on the life insurance sector as a whole. Frikkee said she favours the insurer because of the jump in yield as well as its exposure to Asian economic growth. Meanwhile, the manager is favouring defensive stocks including supermarkets, tobacco and utilities. She prefers UK supermarkets in particular because, she said, they are more able to cope with higher inflation and rising input costs. "You have to look at inflation on a comp...