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New Star to reposition the Diversified Strategi...
On 6 November 2006, subject to unitholder approval, the New Star Diversified Strategic Capital Unit Trust will adopt a revised investment objective and policy that will better reflect a broadening of its investment remit. Upon unitholder approval, the fund, which historically focused on zero dividend preference shares, will be renamed the New Star Diversified Absolute Return Fund.
The changes in the fund’s investment objective and policy are being made to help it maintain its aim of achieving positive returns in varying market conditions during a period in which the zeros market is contracting. In such circumstances, the fund is expected to increase its use of other investment instruments. Importantly, a number of new cash instruments will be made available to the manager to protect the portfolio in times of volatility.
The fund will continue to be managed by Paul Craig, who will aim to achieve a positive absolute return in different market conditions from a portfolio of diversified securities. These will include zero dividend preference shares, fixed interest securities, units in collective investment schemes, investment trusts, money market instruments, deposits and any other permitted asset type deemed appropriate to meet the investment objective of the fund.
Phil Wagstaff, managing director of UK retail sales & marketing at New Star, says:
“With the contraction of the zeros market and the resultant requirement to diversify the fund’s underlying assets, New Star is renaming the fund to reflect this change and to describe its investment objectives and risk profile more accurately.
“Paul’s track record is excellent. Since he joined New Star in September 2003, all five of the funds he manages have outperformed their respective sectors and four have delivered top-quartile performance*. The New Star UK Strategic Income Unit Trust has been the top-performing fund in the IMA UK Equity Income Sector.”
Performance of New Star’s funds of investment trusts
| New Star fund name | IMA sector | Fund performance (%) | Position in sector | Quartile ranking |
| Diversified Strategic Capital Unit Trust | UK Zeros | 55.95 | 4/8 | 2nd |
| UK Strategic Income Unit Trust | UK Equity Income | 122.13 | 1/74 | 1st |
| UK Strategic Capital Unit Trust | UK All Companies | 85.01 | 15/279 | 1st |
| Global Strategic Capital Unit Trust | Active Managed | 95.32 | 2/85 | 1st |
| Zero Portfolio | UK Zeros | 71.50 | 2/8 | 1st |
Source: Lipper, mid-mid for OEICs, bid-bid for unit trusts, net income reinvested, Sterling, 01.09.03 to 13.10.06
Past performance is not necessarily a guide to future performance
-Ends-
For further information please contact:
Phil Wagstaff New Star 020 7225 6076
Ben Robinson New Star 020 7225 9294
Denise Lyttle Polhill Communications 020 7655 0540
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