BNY closes amber-rated Newton Managed Targeted Return fund after failed merger

Underperformance challenges

BNY has closed the Newton Managed Targeted Return fund after receiving an amber rating last year due to underperformance challenges and failing to attract sufficient support for a merger.

The closure, which took place in December last year, was revealed in the firm's 2024 Assessment of Value report, which identified three funds for consistently delivering value for investors in the 12 months to 31 March 2024. Over the last three years, the £670.6m Newton Growth and Income Fund for Charities strategy outperformed the Newton Growth & Income Fund for Charities index by 7.6% versus the latter's 5.5%. The board of BNY Mellon Fund Managers argued the fund delivered a positive return over the year ending 31 March due to the strategy's lower sensitivity to interest rates than ...