New Star is pleased to announce the launch of the New Star International Property Fund, which is now available on the Friends Provident International Limited (FPIL) offshore mirror fund range. The New Star International Property Fund is managed by a team of experienced individuals led by Roger Dossett, chief executive of property asset management.
From 21 May 2007, New Star’s International Property Fund, the first of its kind in the UK, will open to retail investors via FPIL. The decision to launch the New Star International Property Fund was driven by demand from investors and advisers for broad diversification away from equities and bonds and access to the strong potential returns of international property markets experiencing the early signs of rental growth and strengthening capital returns.
Diversification – the key to prudent investing
The New Star International Property Fund is a new fund that offers investors diversification benefits and provides a comparative income combined with the potential for capital growth.
Freedom to target a world of markets
The fund’s geographic diversification will enable it to target different markets at different stages of their respective property cycles. For example, markets that are experiencing strong rental growth or markets that are on the verge of a turnaround – such as Germany – offering the potential for attractive capital growth.
High-quality properties in high-quality locations
The fund will predominantly own high-quality properties in high-quality locations leased to high-quality tenants. The potential risks of investing in newer, developing markets will be balanced by exposure to more established ones. Initially, the fund will assemble a diversified portfolio in the more established markets of Western Europe, Central Europe, Asia and the Pacific Rim. The fund management team will broaden international exposure to developing markets as the fund grows.
Rob Page, Marketing Director, says:
"We are delighted that the New Star International Property Fund is now available on FPIL’s platform. It is a ground-breaking launch that effectively opens up a brand new investment area to retail investors in the UK and offshore. Now Friends Provident International Limited (FPIL) via its offshore mirror fund range is offering the first international ‘bricks and mortar’ commercial property fund for retail investors.”
Jim Henning, Funds Marketing & Research Manager, Friends Provident International Limited, says:
“FPIL is delighted to offer the first retail ‘bricks and mortar’ commercial property fund of its kind targeting the Continental European and Asia Pacific markets. The New Star property team is held in high regard in the international commercial property market. We look forward to offering such an interesting product to our clients.”
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For further information please contact:
Trina Arthur New Star 020 7225 9574
Karen Wagg/Denise Lyttle Polhill 020 7655 0540
New Star important facts:
NOTES TO EDITORS:
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. Investments involve certain risks, as described in the relevant prospectus. Any opinions expressed in this document may vary without prior notice and do not constitute investment advice.
The annual management charge for the New Star International Property Fund is taken from capital. Capital growth will therefore be restricted. The value of investments may be affected by changing stockmarket conditions and, where applicable, by exchange rate movements. Investors may not get back the amount they originally invested when they sell their investment. 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.
Whilst property valuations are conducted by an independent expert, any such valuation is a matter of the valuer’s opinion. The 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 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 fund. 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 fund’s performance may be adversely affected by changes in market and economic conditions, tax or other laws or regulations or accounting standards.
Due to the time required to acquire properties the fund may at times hold less than 80% in physical properties, particularly during periods of significant inflows such as the launch period.
Although national interest rates and changing currency exchange rates may benefit the 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.
This document is for professional advisers and other financial institutions 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. Distribution of this document and the offering of shares in certain jurisdictions may be restricted and accordingly persons into whose possession this document comes are required to inform themselves about and to observe such restrictions. If this is the case, these funds cannot be the subject of active marketing in your jurisdiction.
The Fund mentioned in this document is not registered for distribution.
This document has not been verified or approved by any relevant supervisory authority in the jurisdictions where the Fund is registered.
Issued by: New Star Investment Funds Limited. Authorised and regulated by the Financial Services Authority.
