View more on these topics

New Star shows off special effects

NEW STAR INVESTMENT FUNDS

New Star UK Special Situations Fund

Type:
Oeic

Aim:
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:
Yes

Pep transfers:
Yes

Charges:
Initial 5.25%,
annual1.5%

Commission:
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.

BROKER RATINGS

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

Overall 7/10

Recommended

New Star hits back at FSA claim

New Star is reportedly threatening to sue the FSA for defamation after a newspaper quoted an FSA press spokesman saying the 21 firms embroiled in the split-cap debacle had “ripped off consumers”. New Star is understood to have exchanged letters with FSA, which argues that it has not named any of the firms or passed […]

First Direct is raising LTVs for offset loan

First Direct is setting up an offset mortgage for borrowers with lower levels of equity or relatively small deposits. Previously, First Direct has only offered an offset mortgage to customers with a maximum loan to value ratio of 80 per cent but borrowers with an LTV of 81-95 per cent will now have access to […]

FSA calls off settlement discussions with split cap firms

The FSA has called off talks with a group of split cap firms after preliminary settlement discussions failed to reach agreement. The FSA believes that a payment of £350m in compensation would be appropriate in light of the discussions, however the amount the firms have indicated they are prepared to make available is so far […]

&#39Parliamentary watchdog is best chance of redress&#39

Equitable Life is increasing pressure on the Parliamentary Ombudsman for a fresh investigation into maladministration by the Government in the period before the FSA took over regulation of the industry. Chairman Vanni Treves told policyholders at the AGM that Parliamentary Ombudsman Ann Abraham is the best chance of compensation because she is not required to […]

Tax-free gains? That can’t be right, can it?

When he was Chancellor of the Exchequer, George Osborne made several changes to the way in which income is taxed. Personal allowances were increased significantly above the rate of inflation; a starting rate band was introduced for savings income and, with effect from 6 April 2015, this was assessed at 0 per cent. In addition, […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment