26 March 2020 (updated 30 March 2020) - Commenting on Nick Clay & team’s departure from Newton Investment Management, Juliet Schooling Latter, research director of Chelsea, said: “This is obviously a blow for the company – losing a team as opposed to one fund manager. After 20 years or so with Newton, the offer to move to RWC and launch a new franchise was obviously a very good opportunity and one that Nick felt was too good to turn down.
“BNY Mellon Global Income is a great fund, and one many people are invested in. Ilga Haubelt will take over, I understand, and she has a lot of experience, a similar way of investing and the support of Newton’s not inconsiderable research team.
“But it could be a bit of an uphill battle. It’s hard enough dealing with possible outflows, without having to dealing with an unprecedented market environment at the same time.
“I would urge investors not to make a rush decision on switching in this environment. Maybe take some time to see how Ilga does, monitor outflows and research alternatives in case they then decide to move.
“Unfortunately, the fund will have to come off the Chelsea Selection until such time as we have been able to meet the new manager and undertake due diligence.”
Three alternatives to consider are:
1. Fidelity Global Dividend – managed by Dan Roberts, the Fidelity Global Dividend fund is a well-diversified, lower risk fund that may suit investors seeking a stable, and potentially rising, global income.
2. Guinness Global Equity Income - this portfolio typically consists of around 35 equal-weighted stocks, which the managers aim to hold for three to five years. They focus on how well and consistently a company can use money to generate returns and have substantial freedom to entirely avoid countries and sectors they don't like.
3. M&G Global Dividend – manager Stuart Rhodes is not constrained by a target income yield, but rather invests in a diversified group of companies with the aim of delivering a rising yield, and a good total return, in the future.