Frikkee blames high-yield mandate for poor performance

Newton Higher Income manager says lower yielding stocks have rallied over past two years

Newton’s income manager Tineke Frikkee has blamed the downturn in performance of her £2.7bn income fund on investors’ continued focus on cyclical stocks and the “miserable” returns achieved by high-yield stocks. Frikkee, running the Newton Higher Income fund, has returned 1.9% to investors in the last year, well below the IMA UK Equity Income sector average return of 8.3%. Frikkee’s fund has a strict focus on maintaining a high yield and it is this which she said has impacted performance as lower yielding stocks, such as miners, enjoyed the best of the market rally in the last two yea...