2nd half 2007
The second half of 2007 began with the announcement of the launch of the New Star European Value Fund under the management of a top-performing fund manager, Nicholas Sheridan, who previously was a fund manager for Tilney Investment Management. The European Value Fund had previously been called the Tilney European Growth Fund and its transfer to New Star was part of a £172 million transfer of fund assets from Tilney.
At the end of September, the group announced its interim results for the six months to 30 June 2007. These showed operating earnings* up 58% at £48.1 million and net revenue 39% higher at £86.5 million. The figures showed assets under management up 17% over the six-month period to £24.7 billion. The board declared an interim dividend of 4p per share.
Since New Star's launch, external recognition of New Star's fund managers' skills has been given by independent rating agencies such as Standard & Poor's and OBSR. Such firms take a qualitative and quantitative approach to assessing funds, analysing their objectives, investment processes and style, continuity of personnel and risk-adjusted returns. In the autumn of 2007, S&P moved up one of the group's most successful funds, the New Star UK Alpha Fund, from an 'A' to 'AA' rating while S&P's 'AA' rating for the New Star Global Financials Fund was confirmed.
In October, the group announced the launch of the New Star Heart of Africa Fund, maintaining its record in offering innovative specialist funds alongside more mainstream products. The fund, designed to offer sophisticated investors access to sub-Saharan Africa excluding South Africa, raised £34 million during its three-week offer period.
In December, New Star responded to the downturn in the UK commercial property market as a result of the credit crunch by announcing that the direct property portfolio of the New Star UK Property Unit Trust would be valued at least twice a month until the market returned to a more stable state. The aim was to keep property values as current as possible so that all unitholders were treated fairly, both those redeeming and those remaining as long-term holders.
*Before tax, interest, exceptional items and amortisation of intangible assets
Past performance is not necessarily a guide to future performance.