New Star launches Euro High Yield Fund In Malta

by Phillip Morton, Investors Offshore.com

06 January 2006

New Star International has announced the launch in Malta of the New Star Euro High Yield Fund, a sub-fund of New Star Global Investment Funds PLC, a Dublin-based OEIC.

The fund will be managed by James Gledhill, Head of Fixed Income (Credit) at New Star and rated “AAA” by Citywire as of the end of September 2005.

New Star is represented in Malta by Jesmond Mizzi Financial Services Limited.

The New Star Euro High Yield Fund aims to achieve a high level of income with the potential for modest long-term capital appreciation. It is aimed at cautious investors wishing to protect capital and benefit from a high level of income.

The portfolio gross redemption yield per annum is estimated at about 5.71% and the portfolio gross income yield per annum is estimated at about 6.57%.

Assets in the fund will be split approximately 45% in investment grade bonds and 55% in high yield bonds.

Denominated in euros, the fund is well diversified, with more than 80 holdings to spread risk across varied securities. There is 1.25% annual management charge.

Rob Page, International Marketing Director at New Star commented:

“We have seen an increasing demand for New Star funds internationally and we are in the process of developing our distribution channels and products overseas.

“James’s skill and expertise in the fixed income field is proven. As manager of the New Star High Yield Bond Fund in the UK, he has worked alongside Theo Zemek, forming one of the most experienced bond teams in the UK.

Mr Gledhill noted: “New Star has an established and strong bond presence in the UK. Using the team’s expertise in overseas bond markets we are aiming to replicate this success in Continental Europe.

“The New Star Euro High Yield Fund is targeted at conservative investors looking for modest capital growth and solid income at relatively low risk. The economic environment is currently stable in terms of companies’ ability to pay off debt, making it suitable for short-dated high-yielding bonds. These bonds also take on board less interest rate risk helping to defend against rising inflation.”

New Star, one of the UK’s fastest growing fund management companies, was founded in June 2000 by John Duffield, previously the founder of Jupiter Asset Management, which he built into one of the most successful retail investment businesses in the UK.

At 30 September 2005 the group’s total funds under management (including committed funds) were approximately US$26.9 billion.

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