Newton to cut yield target on Asian Income and switch benchmark for Emerging Income

Yield target for Asian Income falls to 125% of index

Newton Investment Management is set to reduce the annual yield target on its £2.2bn Asian Income fund, managed by Rob Marshall-Lee and team, in a move which could increase its investible stock universe by as much as 25%.

As part of changes effective from 26 May, the fund's overall annual yield target will fall to at least 125% of the income generated from the FTSE Asia Pacific ex Japan index on an historic 12-month basis, down from the existing 135%. The fund's historic yield for the 12 months to 31 December 2015 was 5.02%, compared to 3.26% for the index. In addition, the yield threshold for potential investments has been cut from 100% achieved by the benchmark to 85%. The threshold for stocks to be sold will drop from 85% to 60% of the index yield. Ideas pipeline Marshall-Lee (pictured), who has l...