Newton's Harries to cut large-cap laggards in £3bn Income fund

James Harries, the manager of the £3bn Newton Global Higher Income fund, is set to overhaul his portfolio as he changes tack on a variety of sectors.

The Newton manager (pictured) is preparing to sell down what he terms the ‘large-cap laggards' after a strong period of outperformance. Harries said these types of businesses thrived in the benign period from 1980 to the financial crisis, but may struggle to perform in future. "A number of these will now be found out, and the large-cap laggards fit squarely in that category," he added. "At the same time, high quality businesses are raising debt very cheaply demonstrating why they are valuable franchises. This is why we think they could get expensive," he said. Elsewhere in his fund...