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The New Star Heart of Africa Fund exceeds £50 m...
New Star Heart of Africa Fund returns 10% since launch in December
The New Star Heart of Africa Fund, managed by Jamie Allsopp, has now exceeded £50 million† in size. The fund, which New Star will seek to cap at £100 million for a minimum of two years, has already returned an impressive 10%‡ since inception.
The investment landscape has changed significantly in Africa over recent decades. Strong economic growth, high levels of foreign direct investment, increasing political stability and the resultant improvement in corporate governance have created a compelling investment backdrop and it is no surprise that some of the best performing markets in the world can be found in sub-Saharan Africa.
Jamie Allsopp, manager of the New Star Heart of Africa Fund, says:
"Despite a high cash weighting at launch and the tensions in Kenya, the portfolio’s early performance has demonstrated a low correlation with other world markets. Nearly 75% of the fund is now invested in stocks and as the cash position continues to reduce I expect the fund to benefit even further."
Richard Wilson, marketing director, New Star, says:
"The strong demand for this fund reflects the growing trend to add diversity into portfolios and the demand for assets with a low correlation to Western markets. We knew there was interest in this region when we launched the fund but the level of demand has exceeded our expectations."
Current regional and sector asset allocations
Asset Allocation
| Country | % |
| Nigeria | 35 |
| Mauritius | 8 |
| Kenya | 7 |
| United Kingdon* | 6 |
| Canada* | 5 |
| Ghana | 5 |
| Zambia | 4 |
| Malawi | 3 |
| Australia* | 0.5 |
| Cash | 26.5 |
*While all companies included in the portfolio conduct their main business activities in the sub-Sahara ex South Africa region, some may be listed on stock exchanges elsewhere.
Sector Allocation
| Top 10 sectors | % |
| Banks | 21 |
| Mining | 13 |
| Food Producers | 12 |
| Beverages | 6 |
| Construction & Materials | 6 |
| General Industrials | 5 |
| Non-Life Insurance | 5 |
| Oil & Gas Producers | 3 |
| Pharmaceuticals | 1 |
| Non Equity Investment Instruments | 1.5 |
| Cash & other | 26.5 |
† Source: New Star, offer to offer, net income reinvested, 12.11.2007 – 20.02.2008
‡ Source: New Star, offer to offer, net income reinvested, 12.11.2007 – 20.02.2008
* Source: New Star
