Risk management
Control framework
To complement its desire to foster its fund managers' freedom, New Star maintains a control framework that goes beyond merely satisfying regulatory requirements. The company has rigorous risk and control processes and has established a compliance and monitoring regime that is central to its operating philosophy.
Quality systems and experienced operational staff
The fund managers are supported by quality systems and experienced operational staff, of whom many have more than 10 years' experience in the industry and some have more than 20 years' experience. This operational structure is capable of supporting significant growth.
Efficient information technology and operating systems
New Star operates its own information technology system alongside systems provided by outside suppliers. The operating structure and systems have been developed to provide an efficient and effective service, with segregation of duties throughout the operation. Different teams administer the UK and international businesses to provide the detailed knowledge and experience necessary to meet the differing requirements of investors.
Independent third parties
The operational model also includes outsourcing to third parties where they can provide added value. Independent third-party administrators and leading independent custodians are used for New Star's fund products in such areas as custody, fund accounting and shareholder servicing. The service providers have been specifically chosen for their financial resources, experience and ability as best-of-breed suppliers. Relationships with these companies are crucial to New Star's business and play an important role in minimising risk.
