4th December 2008
New Star Funds: An Update on the Current Situation
Henderson Global Investors is to take over New Star Asset Management in a transaction worth £115 million. The merger should be completed by April.
Henderson has some £50bn of assets under management, and is listed on the London Stock Exchange. The combined company will have AUM of £59.5bn.
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The announcement ends a period of uncertainty for New Star shareholders, but New Star unit holders still face a wait to learn what will happen to their funds and the funds' managers.
We see no reason currently to change the recommendations we made in December - see below. However, there has been a recent change in management to the New Star UK Growth fund. The new manager, Trevor Green, is an able and experienced manager with a good track record, and there are early signs of an improvement in performance, but it is too early to say with confidence that he will manage to turn round the performance of the fund on a consistent basis.
We will do our best to keep our New Star unit holders up to date with developments as they occur. For further information, please call Andrew Graham or Michael Burgess on: 0800 33 99 99.
Allenbridge Analysis of New Star Funds with Recommendations
New Star Asset Mgmt Group |
AB Overall Score
(3 Nov 2008) |
Fund Sector |
AB Verdict |
Allenbridge Says |
New Star Asia Portfolio |
5 |
Far East Excluding Japan |
HOLD |
|
New Star European Growth |
8 |
Europe Excluding UK |
HOLD
|
|
New Star European Portfolio |
6 |
Europe Excluding UK |
HOLD
|
|
New Star European Value |
[5] |
Europe Excluding UK |
HOLD
|
|
New Star Global Financials |
5- |
Specialist Financial |
HOLD
|
|
New Star Heart of Africa |
N/A |
Middle East & Africa |
HOLD
|
|
New Star International Property |
[9] |
Property (Direct) |
HOLD
|
|
New Star Managed Portfolio |
5 |
Balanced Managed |
HOLD
|
|
New Star Money Market |
9 |
Money Market |
HOLD
|
|
New Star Technology |
5 |
Technology & Telecoms |
HOLD
|
|
New Star UK Alpha |
5 |
UK Equity - All Companies |
HOLD
|
|
New Star UK Property |
5 |
Property (Direct) |
HOLD |
|
New Star Active Portfolio
|
3- |
Active Managed |
CONSIDER TRANSFER |
EFA Allenbridge Strategic Alpha or Jupiter Merlin Growth |
New Star American Portfolio
|
2 |
North America |
CONSIDER TRANSFER |
Martin Currie North America |
New Star Balanced Portfolio
|
2- |
Balanced Managed |
CONSIDER TRANSFER |
EFA Allenbridge Strategic Alpha or Jupiter Merlin Growth |
New Star Cautious Portfolio
|
[2] |
Cautious Managed |
CONSIDER TRANSFER |
Jupiter Income Portfolio |
New Star Diversified Absolute Retrn
|
3+ |
UK Zero Coupon Prefs |
CONSIDER TRANSFER |
Threadneedle Absolute Return |
New Star Equity Income
|
2 |
UK Equity Income |
CONSIDER TRANSFER |
Artemis Income |
New Star European Leaders
|
3+ |
Europe Excluding UK |
CONSIDER TRANSFER |
Ignis Argonaut European Income |
New Star Extra HighYield Bond
|
2 |
High Yield Bonds |
CONSIDER TRANSFER |
Inv Perp Monthly Income Plus |
New Star Fixed Interest
|
2 |
Strategic Bond |
CONSIDER TRANSFER |
M&G Strategic Corporate Bond |
New Star Global Strategic Capital
|
2- |
Active Managed |
CONSIDER TRANSFER |
EFA Allenbridge Strategic Alpha or Jupiter Merlin Growth |
New Star Global Equity
|
4 |
Global Growth |
CONSIDER TRANSFER |
Neptune Global Equity |
New Star Hidden Value
|
3- |
UK Equity - Special Sits |
CONSIDER TRANSFER |
AXA Framlington UK Select Opportunities |
New Star High Yield Bond
|
3 |
Strategic Bond |
CONSIDER TRANSFER |
Inv Perp Monthly Income Plus |
New Star Higher Income
|
2- |
UK Equity Income |
CONSIDER TRANSFER |
Threadneedle UK Equity Income |
New Star Managed Distribution
|
3 |
Cautious Managed |
CONSIDER TRANSFER |
Gartmore Cautious Managed |
New Star Monthly Income
|
3 |
UK Equity & Bond Income |
CONSIDER TRANSFER |
Inv Perp Monthly Income Plus |
New Star Pacific Growth
|
2 |
Far East Excluding Japan |
CONSIDER TRANSFER |
First State Asia Pacific Leaders |
New Star Select Opportunities
|
1 |
UK Equity - Special Sits |
CONSIDER TRANSFER |
JO Hambro UK Opportunities |
New Star Sterling Bond
|
1 |
UK Corporate Bond |
CONSIDER TRANSFER |
Fidelity Sterling Bond |
New Star Tactical Portfolio
|
4- |
Global Growth |
CONSIDER TRANSFER |
EFA Allenbridge Strategic Alpha or Jupiter Merlin Growth |
New Star UK Growth
|
2- |
UK Equity - All Companies |
CONSIDER TRANSFER |
Newton Income |
New Star UK Strategic Capital
|
2 |
UK Equity - Special Sits |
CONSIDER TRANSFER |
JO Hambro UK Opportunities |
New Star UK Strategic Income
|
2- |
UK Equity Income |
CONSIDER TRANSFER |
Schroder Income Maximiser |
NOTE: Allenbridge Group has an interest in EFA Allenbridge Strategic Alpha fund as we act as investment adviser to the fund.
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