Frikkee reshuffles £2.3bn fund as Newton slashes yield target

Higher Income manager ditches number of long-term higher yielding stocks for lower-yielding names with better upside opportunities.

Tineke Frikkee has refocused her £2.3bn Newton Higher Income fund following the move to slash the fund’s dividend target. Earlier this month the group cut the fund’s payout target, taking the prospective yield to 6% following a  drop-off in performance. Frikkee said she has now sold down positions in a number of long-term, higher yielding holdings, switching into lower-yielding stocks where she sees better upside potential. “This is a process we only just started but it will allow us to focus on other characteristics of stocks rather than just the dividend yield,” she said. “In ...