The New Star Euro High Yield Fund has been awarded an A (New)/V4 fund management rating by Standard & Poor's Fund Services*. This is the first time S&P Fund Services has reviewed the fund, a blended credit portfolio with a neutral mix of sub-investment grade and investment grade bonds. In rating the fund S&P Fund Services recognised that the fund managers, James Gledhill and Nick Hayes, had a wealth of credit experience and a strong record for managing sterling mandates.
Standard & Poor's Fund Services said:
"This fund differs from the majority in the peer group in that its objective is to deliver a high rate of total return. While competitor funds typically have over 80% in high yield, this fund's neutral position is 55% high yield and 45% investment grade. Relative performance within the euro high yield peer group is likely to be always affected by the fund's lower structural bias to high yield. If high yield spreads widen against investment grade, it is likely to produce very strong relative returns."
Rob Page, Marketing Director, New Star International, said:
"The strong management, blended credit grade experience and consistent performance James and Nick bring to this fund have been recognised in this new rating. We welcome S&P's acknowledgment that although the fund is high yield by name, the freedom James and Nick have to move up and down the credit curve as conditions dictate means the fund will behave differently to others in its peer group."
*At 01/10/2007. A bond fund volatility rating is a current opinion of a fixed-income investment fund's sensitivity to changing market conditions. Bond funds are rated V1, low sensitivity to changing market conditions, to V6, highest sensitivity to changing market conditions.
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For further information please contact:
| Trina Arthur | New Star | 020 7225 9574 |
| Polhill Communications | 020 7655 0540 |
NOTES TO EDITORS:
New Star, one of the UK's fastest growing fund management companies, was founded in June 2000 by John Duffield, previously the founder of Jupiter Asset Management, which he built into one of the most successful retail investment businesses in the UK.
New Star is expanding its international business in response to the growing demand from investors in Continental Europe and Asia. Our aim is to become a leading mutual fund provider in the next few years, offering international investors the investment expertise of one of the fastest growing and most successful UK fund management groups.
New Star's international strategy is to develop key partnerships in local markets.
New Star International's website can be found at www.newstaram.com/international/.
For regular economic and market comment from Simon Ward, New Star's economist and strategist, visit www.moneymovesmarkets.com.
Past performance is not necessarily a guide to future performance.
