View more on these topics

Range rovers drive returns at New Star

New Star’s multi-manager team are attributing the outperformance of their active portfolio to its ability to invest in a range of asset classes and markets while measuring downside risk in every position it takes.

The fund has outperformed the Investment Management Association’s active managed sector average over the last six years and is first quartile over one, three and five years to December 31, 2007.

New Star says it works out how much risk to take with each holding and invests in different asset classes as market conditions change. This means that if any of the market calls are wrong, the fund does not suffer too much.

It says the Nurs rules which widened access to offshore funds and allowed it to hold exchange-traded funds have also contributed to outperformance. Co-managers Mark Harris and Craig Heron use ETFs to access markets such as oil services and soft commodities that would otherwise have been unavailable. They recently sold out of gas and corn ETFs while adding a US homebuyers ETF.

Harris says: “We sold the corn ETF because we think the market is getting over-extended in the short term although we like it in the long term. We bought the US homebuyers ETF because it is an area that has had an earnings recession. Prices have come down 60 per cent plus, so it is a good contrarian holding.”

Recommended

Rock fall hits equity-release sales

Equity-release sales increased last year but the Northern Rock debacle hit business in the final quarter, says Safe Home Income Plans.The total value of new business written last year was 1.21bn, which was 5 per cent up on 1.154bn in 2006.Sales through intermediaries increased by 25 per cent last year from 14,799 to 18,531 while […]

Standard Life transfers £6.7bn annuity liabilities to Canada Life International Re

Standard Life has reinsured £6.7bn of UK immediate annuity liabilities to Canada Life International Re. The back book primarily consists of existing Standard Life pensions customers who, on retirement, took out an annuity product with the life office.Standard Life conducted a comprehensive review of the options to manage longevity exposure within its annuity book.The review […]

Inflation increases to 2.2 per cent in January

CPI annual inflation increased to 2.2 per cent in January, up from 2.1 per cent in December.The Office of National Statistics says the largest upward pressures came from a 1.3p increase in the average price of petrol and food prices which fell by less than last year.Liberal Democrat shadow chancellor Vince Cable says the figures […]

Darling says he is on the side of the angels

The Government is to set out incentives in the Budget to help business angels invest in start-up companies.At an EEF manufacturing event last week, Chancellor Alistair Darling said the Government would cut back on unnecessary regulation and continue to assess the case for reducing corporation tax.He pledged his commitment to budding entrepreneurs in response to […]

Life cover for life

Jennifer Gilchrist Proposition Lead – Design, Royal London When someone mentions whole of life plans, most people will think of a niche product that serves as an inheritance tax planning tool for high-net-worth clients. And it’s really not surprising they’ve been pigeonholed in that way because before the arrival of RDR in 2013, that’s more […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment

    Close

    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm

    Email: customerservices@moneymarketing.com