" Retail sales total more than £1 billion
" Contracts for the rights to manage six funds acquired from Aberdeen Asset Management, partly funded by a £35m capital raising
" Three Aberdeen fund managers recruited; John Pullar-Strecker, Mark Sanders and Phil Roantree
" Neil Campling, former Aberdeen fund manager, recruited
" Partnership with Intervalor to market retail and institutional investment products in Nordic region
" Managed Distribution Fund launch
" Global Financials Fund opened to retail investors
" Convertible Bond Hedge Fund launch
" Strategic Government Bond Fund launch
" Simon Akroyd recruited to develop private client department
" New Star Global Investment Funds authorised for sale in Hong Kong and Malta
" In early January New Star Investment Funds announced that it had reached £1 billion in retail sales since its launch in July 2001, confirming the company's position as the UK's fastest growing retail fund manager.
Later in the month an agreement was signed with Aberdeen Asset Management for the rights to take over the management of six Aberdeen retail funds. The deal, which involved three fixed income funds, an equity income fund and two technology funds, was approved by Aberdeen shareholders and completed in February. As a result, New Star's business virtually doubled in size with funds under management rising to about £3.8 billion.
Following completion, the fixed income funds were renamed as the New Star Fixed Interest Unit Trust, the New Star Extra High Yield Unit Trust and the New Star Sterling Bond Unit Trust and two fund managers, Phil Roantree and Mark Sanders, were recruited from Aberdeen. Theodora Zemek became manager of the Fixed Interest fund, Phil Roantree became the manager of the Sterling Bond fund while Mark Sanders became the assistant to James Gledhill on the Extra High Yield Bond fund. Toby Thompson took over the management of the equity income fund, renamed the AUTM New Star Equity Income Fund, while John Pullar-Strecker was recruited from Aberdeen to run the two technology funds, renamed as the New Star Technology Unit Trust and the New Star European Technology Unit Trust. Neil Campling, a former Aberdeen fund manager, was recruited as his assistant.
New Star's main marketing initiative of the 2003 ISA season was the launch of its third income fund, the New Star Managed Distribution Fund. Managed by Theodora Zemek, supported by Toby Thompson and James Gledhill, the fund delivers a gross estimated yield of 5% [1], a yield thought to be competitive and achievable without taking a high level of risk [2]. The initial asset split of the fund was 60%-65% in bonds and 35%-40% in equities.
In the international market a partnership was formed with Intervalor to market New Star's investment products to retail and institutional clients in Denmark, Finland, Norway and Sweden. In April the international sales team launched the New Star Strategic Government Bond Fund, which invests in a spread of investment grade and high yielding government bonds denominated in dollars with the aim of delivering a yield of 4%-5% [1] and the potential for capital growth. Two months later, New Star's Dublin based international funds were authorised for sale to retail investors in Hong Kong and Malta.
As part of the expansion of New Star's alternative investment business, two top performing convertible hedge fund managers, Sajid Ramzan and Chris Beton, were recruited and the New Star Convertible Opportunities Hedge Fund was launched for them to manage. Ramzan and Beton previously worked as a team for Soros Fund Management, Commerzbank and Deutsche Morgan Grenfell.
Other developments included the recruitment of Simon Akroyd as New Star's head of private clients with the remit to build a private client department. Simon worked previously at Aberdeen Asset Management and Cazenove.
Notes
[1] Net of charges, gross tax. Income and capital values are not guaranteed.
[2] The value of your investment and the income from it may fall as well as rise. You are advised to read the risk warnings within the Key Features document before investing.