New Star Asset Management, one of the UK's most dynamic fund management companies, and Emirates NBD Group, have today announced the launch of the Emirates Islamic Global Property Fund. The fund, which is an open-ended daily dealing investment fund, will reflect the performance of the New Star International Property Fund. The fund will provide investors with access to global commercial property in a manner compliant with Islamic Shari'a.
The Emirates Islamic Global Property Fund will be managed by Emirates Investment Services Ltd ("EIS"), the asset management arm of Emirates NBD Group and a company licensed and regulated by the Dubai Financial Services Authority. The fund will offer daily liquidity and Shari'a-compliant exposure to direct property assets. Its focus will be on Continental European and Asian direct commercial property. The fund uses an Islamic certificate deriving its returns based on the profit from a reference index linked to the value of physical commercial property and real estate globally. All return streams from these assets will be generated in a manner compliant with Islamic Shari'a and the fund will utilise Shari'a compliant assets within its asset mix.
Initially, the fund will have two share classes: an institutional share class with a minimum investment of US$1 million, top-up of US$250,000 and annual management charge of 1.25%; and a sophisticated investor share class with a minimum investment of US$25,000, top-up of US$10,000 and an annual management charge of 1.50%. In reflecting the performance of the New Star International Property Fund, the Emirates Islamic Global Property Fund will be a proposition for Gulf Cooperation Council countries (GCC) investors.
Since its launch in June 2007, the UK-domiciled New Star International Property Fund has attracted significant retail interest. Its strategy is to balance the potential risks of investing in developing markets with exposure to more established regions. The fund invests primarily in bricks and mortar, but will maintain a high level of liquidity.
Roger Dossett, chief executive of property fund management at New Star, said:
"The international property market is a market with great potential. We are delighted to be working with Emirates Investment Services Ltd and we look forward to continuing and strengthening this relationship."
David Marshall, Head of Product Development at Emirates Investment Services, said:
"The Emirates Islamic Global Property Fund is believed to be a "first" in terms of its offering daily liquidity and Shari'a compliant exposure to direct property assets, while focusing on European and Asian direct commercial property. Investors in the GCC countries are demonstrating the importance of Shari'a-compliant investment opportunities and the performance of the New Star International Property Fund led to our decision to partner with New Star."
- Ends -
For further information please contact:
Trina Arthur New Star +44 20 7225 9574
Asad Abbasi Buchanan Middle East +971 4 369 8566
NOTES TO EDITORS:
New Star is a broadly diversified, well capitalised investment management company committed to offering investors superior performance. Founded in June 2000, the company has built its funds under management to approximately US$41.0 billion (18.03.2008) with clients across Europe, North America and Asia.
In November 2005, New Star Asset Management Group PLC was listed on the London Stock Exchange. It is now one of the largest independent retail fund management groups in the UK. The company employs 400 staff, of whom 83 are investment professionals and has offices in London, Dublin, Madrid, Zurich, Bermuda and Hong Kong (29.02.2008).
About Emirates Investment Services Ltd (EIS)
EIS is a key pillar within the Emirates NBD group and operates out of the Dubai International Financial Centre (DIFC), under the regulation of the Dubai Financial Services Authority (DFSA). EIS's team of investment professionals has rapidly grown around a core of experienced managers. The team is made up of fourteen different nationalities, providing global insight in to our investment process and collectively bringing more than 150 years of investment experience to the company.
EIS's investment philosophy is centered around value investment principles and the strong belief that the acquisition of undervalued assets will deliver superior investment returns. Support for this philosophy has resulted in assets under management growing to AED 5.296bn (USD 1.45bn) in just over two years, making EIS one of the leading asset managers in the region.
All collective investment schemes run by EIS are regulated by either the Guernsey Financial Services Commission (GFSC) or the Jersey Financial Services Commission (JFSC).
IMPORTANT INFORMATION
Past performance is not necessarily a guide to future performance. The value of investments and any income from them may fall as well as rise and investors may not get back the amount originally invested. The value of investments may also increase or decrease as a result of changes in exchange rates between currencies. The opinions expressed here are solely those of the authors at the time of print and should not be interpreted as investment advice.
This document is for professional and sophisticated investors, financial institutions and professional financial advisers only and should not be provided to or relied upon by private investors.
This document should not be distributed to any third parties and does not constitute an offer or solicitation to anyone in any jurisdiction in which such an offer is not authorised or to any person to whom it is unlawful to make such offer or solicitation.
Please be aware that the New Star International Property Fund is registered for sale in the UK and is recognised in Singapore as a restricted collective investment scheme.
Whilst property valuations are conducted by an independent expert, any such valuation is a matter of the valuer's opinion. The New Star International Property Fund could be subject to significant losses if it holds a large position in a particular region that declines in value or is otherwise adversely affected. The amount raised when a property is sold may be less than the valuation, especially if the property needs to be sold quickly. Although the property shares element of the New Star International Property Fund provides it with some liquidity, in certain circumstances, for example where there are significant redemptions, there may be constraints on the redemption or switching of shares in the New Star International Property Fund.
The New Star International Property Fund's exposure to direct international commercial property may be less than 75% depending on market conditions, during times of significant inflows, or when reallocating between sectors or markets.
Although national interest rates and changing currency exchange rates may benefit the New Star International Property Fund, they also present an added risk. The managers may seek to reduce the impact of any risk of fluctuations in international interest rates and currency exchange rates by purchasing instruments that provide hedging. The New Star International Property Fund invests in a specialist sector, which may be less liquid and produce more volatile performance than an investment in broader investment sectors.
Please note, the bid-offer spread for the New Star International Property Fund is likely to be wider than on less specialist funds and may vary. The bid-offer spread represents the difference between the buying and selling prices for the underlying assets in the New Star International Property Fund. Changes to the New Star International Property Fund's pricing basis will lead to an increase or decrease in what you will pay or receive when buying or selling shares. The overall impact of these changes should be less for long term investors and may be either positive or negative.
The value of capital and income will fluctuate as property values and rental income rise and fall. Whilst the manager will seek to hold a relatively diversified portfolio, as a result of operating in an international remit over a large number of jurisdictions and with investments in largely illiquid assets, the New Star International Property Fund 's performance may be adversely affected by changes in market and economic conditions, tax or other laws or regulations or accounting standards.
Full details of the New Star International Property Fund can be found in the prospectus. Any decisions should be made solely on the basis of the relevant documents, which are available on request from New Star. The Simplified Prospectus is also available upon request.
New Star Investment Funds is the trading name of New Star Investment Funds Limited, part of the New Star Marketing Group. New Star Investment Funds is not authorised to give investment advice and only provides information on the New Star Group's products.
Issued by New Star Investment Funds Limited. Authorised and regulated by the Financial Services Authority.
