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New Star grows Exeter funds by up to 84%

New Star’s five funds of investment trusts have returned between 45 and 84 per cent in the two years since it bought the funds from Exeter.<

Investment manager Paul Craig says investment trusts have performed well over the past two years, benefiting from corporate activity,contracting discounts, gearing and active management.

Since the five funds came to New Star, Craig has worked to create a greater degree of commonality between their management while allowing for different risk appetites and income requirements.

The UK strategic income unit trust is the best performer, being top in its sector of 77 trusts with a return of 49 per cent over one year and 84 per cent since the transfer.

The diversified strategic capital unit trust has produced the lowest returns of 20.9 per cent over a year and 45 per cent since the transfer and is ranked fourth out of eight funds in its sector.

Craig remains positive on Asia. In the global strategic capital unit trust, which has returned 67.5 per cent since the transfer, Craig includes the Baillie Gifford Japan and JPMF emerging markets trusts. He has also obtained diversification through private equity trust HgCapital.

He says: “I will continue to support leading fund managers while looking for opportunities in specialist asset classes such as life sciences, private equity and absolute return funds.”

AITC spokeswoman Jemma Jackson says: “Funds of funds focusing specifically on investment trusts can be a useful way for investors to gain diversified access to the investment trust sector. It has been a good couple of years for the sector generally so many funds of investment trusts have been per- forming extremely well.”

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