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New Star shows off special effects


New Star UK Special Situations Fund


Growth by investing in UK equities

Minimum investment:
Lump sum £1,000, monthly £100

Investment split:
37.7% large caps, 34.4% small caps and unlisted,
27.9% mid caps

Isa link:

Pep transfers:

Initial 5.25%,

Initial 3%,
renewal 0.5%

Tel: 0845 6088702

The New Star Special Situations Fund is an Oeic with a three-year institutional track record which has been made available to retail investors.

Barry Laymond Financial Services senior practitioner Barry Laymond says: “This is just another product in a market saturated with funds but nevertheless it offers a special situations fund backed by the New Star name, which will appeal to some IFA clients. I cannot say much more.”

Laymond is critical of the fund&#39s current portfolio. He says: “Some of the fund is invested in New Star itself. Even though the weighting is only 5.6 per cent, it is not an attractive feature and the fund would be better advised to invest elsewhere.” He also wonders why the fund fact sheet does not show performance over specific periods such as six months and a year, instead of charting it since launch in a graph.

He explains: “There is no real way for investors to see and compare performance at a glance. Why can&#39t New Star compare its special situations fund to the other special situations funds in the marketplace?”
However, Laymond says the fund has done well since launch when compared to the UK All Companies sector. But he thinks many investors feel let down by New Star due to the poor performance of its first two funds which focus on the UK and Europe.

According to Laymond Fidelity special situations and other excellent performers such as Artemis will probably be more attractive to investors when selecting funds in this asset class.


Suitability to market: Average
Investment strategy: Average
Charges: Average
Adviser remuneration: Average

Overall 7/10


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