New Star Investment Funds has established a portfolio management
service made up of three Oeic funds of funds and a unit trust
acquired last year from Edinburgh Fund Managers.
The Galaxy portfolio service is available to investors with at least
£25,000 and provides access to New Star performance portfolio,
New Star fund of funds portfolio, New Star managed growth portfolio
and New Star monthly income trust.
New star performance portfolio can invest up to 100 per cent globally
in equity funds. New Star fund of funds portfolio must hold at least 15
per cent in cash and fixed-interest securities and New Star managed
growth portfolio is similar but will contain more holdings. New Star
monthly income trust invests mainly in fixed interest and is managed
by John Cornes of Laing & Cruickshank.
The fund of funds are managed by New Star's multi-manager
investment team led by Mark Harris. They star the selection process
from a top-down basis, which involves looking at the global economy.
Then, a bottom-up approach is taken to select funds that fit in with the
team's economic views. Only funds that have a good track record will
be considered for the portfolios.
Investors can mix and match the funds to suit their personal
requirements and an investment protection feature protects the
investment against capital depreciation if the investor dies. This is
set up as a three-year term life assurance policy that will initially
protect 105 per cent of the investment value. Annual reviews may lock
in any increase in the investment value but the protection runs out
after the first three years,
Portfolio management services are traditionally aimed at
high-net-worth clients and this product's relatively low minimum
investment level makes the product more accessible. Although the
investment protection is an appealing concept, the fact that investors
will only benefit from it if they die within the first three years of
investing limits its appeal.