BNY Mellon is making changes to the investment objective and investment policy of the Newton Global Income & Newton UK Income funds

11 December 2017

These changes come into effect on 2 January 2018:

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Newton Global Income Fund

The new investment objective and policy of the Sub-Fund will be to: “generate distributions over an annual period together with long-term capital growth from investing predominantly in global securities. The Sub-Fund may also invest in collective investment schemes (including but not limited to another Sub-Fund or Sub-Funds of the Company). Derivatives may be used for efficient portfolio management only.”

Previously the Sub-Fund aimed to achieve “increasing annual distributions”. The remainder of the investment objective and policy is not changing.

The change is a result of the prolonged low interest rate and dividend paying environment both in the UK and in many other parts of the world. While we believe that income growth will remain a very important driver of total investment return and capital growth over the long term, the environment is such that we do not believe that annual distribution increases in the shorter term should necessarily be expected; more importantly, the pursuit of such increases would potentially be unhelpful in the context of the longer-term objectives of the Sub-Fund.

Newton UK Income Fund

The new investment objective and policy of the Sub-Fund will be to: “generate distributions over an annual period together with long term capital growth. The Sub-Fund will invest predominantly in companies listed or located in the UK. The Sub-Fund may also invest in collective investment schemes (including but not limited to another Sub-Fund or Sub-Funds of the Company). Derivatives may be used for efficient portfolio management only.”

Previously the Sub-Fund aimed to achieve “increasing distributions on a calendar year basis”. The remainder of the investment objective and policy remains the same.

The change is a result of the prolonged low interest rate and dividend paying environment both in the UK and in many other parts of the world. While we believe that income growth will remain a very important driver of total investment return and capital growth over the long term, the environment is such that we do not believe that calendar-year increases in the shorter term should necessarily be expected; more importantly, the pursuit of such increases would potentially be unhelpful in the context of the longer-term objectives of the Sub-Fund.

Funds and Products affected by these changes

This affects your clients invested in these funds through the following products:

Zurich Intermediary Platform
Newton Global Income Inc GBP
Newton Global Income Ret Acc GBP
Newton Global Income W Acc GBP Clean
Newton Global Income W Inc GBP Clean
Newton Global Income Inst I Acc GBP Clean
Newton UK Income Inc GBP
Newton UK Income W Inc GBP Clean
Newton UK Income W Acc GBP CleanBP

Sterling Investment Bond

Sterling Newton Global Income
Sterling Newton Global Income 2
Sterling Newton Income
Sterling Newton Income 2

Sterling ISA and Sterling Investment Account
Newton Global Income W Inc
Newton UK Income W Inc

Zurich Pension

Zurich Newton Global Income ZP
Zurich Newton UK Income ZP

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