New Star Investment Funds has made the New Star global financials fund available to retail investors and is promoting the fund alongside two others as part of its triple growth package.
The global financials fund holds between 40 and 50 stocks and started life in December 2001 as an institutional fund, the WorldInvest global wealth management fund. WorldInvest was subsequently taken over by New Star and the fund was renamed.
Former Jupiter manager Guy de Blonay runs the global financials fund on a bottom-up basis with a bias towards the UK. He combines the use of published information on companies with input from New Star's other fund manages and his own research methods such as company visits. When selecting stocks, de Blonay looks for attractively valued companies with a robust business model, high quality management and significant growth potential. Examples of holdings include Anglo Irish Bank, Man Group and Royal Bank of Scotland.
Financial stocks have rallied in recent months and New Star is anticipating investment opportunities will arise as a result of governments' attempts to move away from the reliance on state pensions. Some financial companies have restructured to make themselves more efficient and cautious optimism about a recovery in global stockmarkets has also impacted on sectors such as banks. On the insurance side, the trend towards higher premiums may result in higher growth prospects going forward.
However, as a specialist fund that focuses on one sector, the New Star global financials fund may be volatile and investors should be prepared for above average risks.
According to Standard & Poor's, the New Star global financials fund is ranked 13 out of 31 funds based on £1,000 invested on a bid-to-bid basis with net income reinvested over one year to August 11, 2003.