- Newton Managed Targeted Return Fund (a sub-fund of BNY Mellon Managed Funds I) - Newton Growth and Income Fund for Charities (a sub-fund of BNY Mellon Charities Funds) - Newton Growth Fund for Charities (a sub-fund of BNY Mellon Charities Funds) - Newton SRI Fund for Charities
NEWTON MANAGED TARGETED RETURN FUND
Although this fund has an overall satisfactory rating, we believe further action and monitoring is required with respect to its performance. Over the review period examined (ending 31 March 2020), we found the vehicle, structured as a fund of funds, did not meet all of its investment objectives.
While it recorded a positive return in sterling terms over a rolling three year period, ending 31 March 2020, it did not generate returns in line with UK RPI + 4% per year over five years (to the same end date) before fees.
However, after speaking with clients in the fund, we note many are largely satisfied with the fund’s performance in conjunction with its risk profile.
We will continue to monitor its performance against its targets to ensure they are appropriate.
NEWTON GROWTH AND INCOME FUND FOR CHARITIES
This fund has met all of the board’s expectations across the FCA's seven assessment criteria.
The fund has beaten its benchmark, using the expected level of risk, over the five to seven year period ending 31 March 2020 - its target objective. In our assessment, the fund has also provided a high quality of service to investors.
The latter has been both by investment manager and the service providers to the fund.
Along with strong performance and a high quality of service, the cost to investors has been lower than other comparable peers (as determined by one of our external consultants).
NEWTON GROWTH FUND FOR CHARITIES
We have determined, based on the results of the analysis conducted for the review period ending 31 March 2020, this fund has provided good value to investors over the assessment period. The fund has achieved its performance aims, while also providing a high quality of service for a lower price than its peer group. Through ongoing monitoring, we hope to ensure the fund continues to meet investors’ expectations.
NEWTON SRI FUND FOR CHARITIES
This fund, which has a socially responsible investment mandate, has in our view provided good value for investors across all seven of the FCA's criteria. The fund has provided solid performance versus its benchmark and at a lower cost than comparable funds.
The quality of service provided and received by the fund and its managers has also been in line with expectations. We will monitor this product to ensure it continues to provide good value in the future.