2005 began with a major marketing initiative for New Star Investment Funds' range of funds of funds. A series of more than 30 roadshow events were held across the country during January and February, informing independent financial intermediaries about the award-winning range managed by Mark Harris and his team.
In March, the company took a further step into the investment trust sector when it announced that it had been conditionally appointed to manage the Exeter Financials Fund, which was then renamed the New Star Financial Opportunities Fund. The conditional appointment was confirmed in April at a shareholders meeting, following which the trust's fund manager, Nick Brind, joined New Star's growing team of investment professionals.
The following month, New Star Investment Funds announced a successful completion to the 2005 ISA season. Against a background of weak sales for the industry as a whole, New Star's ISA season sales showed a 229% gain over the same period in 2004. The best selling funds were the Property Unit Trust, the European Growth Fund and the UK Alpha Fund.
In May, the group announced its results for the year to 31 December 2004, showing operating profits up 140% to £25.4 million before interest, exceptional items and amortisation of intangibles. Funds under management increased from £5.9 billion (in 2003) to £10.7 billion, generating a 51% rise in turnover to £69.2 million.
Sales of the New Star Property Unit Trust continued to be strong in the early months of the new tax year, with its total of funds under management just under £550 million by the end of June, making it the UK's third largest property fund. This took the gain in assets following New Star's assumption of the fund's management from Edinburgh Fund Management in October 2003 to more than 270%.
Across the retail funds operation as a whole, New Star maintained its popularity among financial intermediaries and their clients during the first six months of 2005, reflecting strong overall performance. Independent figures showed the company as market leader over the period as measured by net retail sales [2] and number two as measured by gross retail sales [1].
Notes
[1] Investment Management Association. Sales figures 01.01.05 to 30.06.05
[2] Net retail sales measured by total sales less total repurchases
Past performance is not necessarily a guide to future performance.