AUSTRALIA ★ CZECH REPUBLIC ★ GERMANY ★ JAPAN ★ NETHERLANDS ★ POLAND ★ SINGAPORE
INTERNATIONAL
PROPERTY.
DIVERSIFY FOR THE LONG TERM.
THE NEW STAR INTERNATIONAL PROPERTY FUND.
4 . 3%
Estimated gross income
yield at 29.08.08,
may vary and is not
guaranteed.†
With equity and fixed income markets continuing to face challenging conditions, the need for a welldiversified
investment portfolio remains paramount. For many people, commercial property, in the form of
bricks and mortar, is an asset class that best complements equities and bonds within a balanced portfolio.
The New Star International Property Fund was launched in June 2007 in response to demand from advisers
and investors looking for further long-term diversification potential and was the first UK retail bricks and
mortar fund targeting Continental Europe and the Asia Pacific region. Whilst commercial property has not
been immune to the global economic slowdown, one of the key benefits of the New Star International
Property Fund is the access it gives investors to countries’ property markets at different stages of their
economic cycles by targeting areas where the local markets are most attractive. For the 12-month period from launch, the fund has
delivered a return of 4.0%*, respectable in the current climate when, for example, the MSCI World Index lost 9.0%**. Please note, past
performance is not necessarily a guide to future performance.
Since launch, the fund has focused primarily on the growth opportunities presented by the property markets in the Asia Pacific region,
which have so far been more resilient to the impact of the credit crunch. Although the fund’s manager has been relatively cautious on
Continental Europe, attractive opportunities are now starting to emerge. The fund’s relatively high cash weighting means that it is now
in a strong position to exploit opportunities to obtain high-quality European properties on increasingly appealing yields. Investors
should note that unlike UK investments, international investments carry currency risks. This risk is mitigated by currency hedging for
the direct property element of the fund.
In summary, we believe it is important to take a long-term view of international commercial property investment and would encourage
investors to focus on its potential key benefits: namely a relatively secure income stream and its excellent global diversification credentials.
The New Star International Property Fund is available through the following international distribution partners:
The value of property investments and any income from them may fall as well as rise and are not guaranteed. The fund may also be affected by changing stockmarket conditions
and by exchange rate movements. Investors may not get back the amount they originally invested. Due to the specialist nature of property investment, in certain circumstances, for
example where there are significant redemptions, there may be constraints on the redemption or switching of shares. As a result, at times, New Star may have to delay acting on
instructions to sell investments. The New Star International Property Fund’s exposure to direct international commercial property may be less than 75% depending on market
conditions, during times of significant inflows, or when reallocating between sectors or markets. The annual management charge for the fund will be taken from capital. Capital
growth, therefore, will be restricted. The bid-offer spread – the difference between the buying and selling prices of the underlying assets in a fund – is wider for property funds than
for less specialist funds and may vary. Changes to the fund’s pricing basis will lead to an increase or decrease in what investors will pay or receive when buying or selling shares.
The overall impact of these changes should be less for long term investors and may be either positive or negative. Also, while property valuations are conducted by an independent
expert, any such valuation is a matter of the valuer’s opinion. Whilst the manager will seek to hold a relatively diversified portfolio, as a result of operating within an international
remit over a large number of jurisdictions and with investments in largely illiquid assets, the fund’s performance may be adversely affected by changes in market and economic
conditions, tax or other laws, regulations or accounting standards. This fund is only registered for sale in a small number of countries. The distribution of this advertisement and the
offering of shares directly invested in the fund are restricted by law in certain jurisdictions. This advertisement does not constitute an offer or solicitation in any jurisdiction in which
such an offer is not authorised, and is directed only at persons or entities in any jurisdiction where such access to information contained herein and use thereof is not contrary to
local law or regulation. Accordingly, all persons into whose possession this advertisement may come are required to inform themselves of and to comply with any such restrictions.
FOR FURTHER INFORMATION ON THE NEW STAR INTERNATIONAL PROPERTY FUND
PLEASE CONTACT YOUR USUAL LIFE COMPANY CONSULTANT.
This advertisement is for professional financial advisers only and should not be relied upon by private investors.
*Performance is calculated on a bid to bid basis, net income reinvested from 4 June 2007 to 30 May 2008. Source: Lipper. **Source: Datastream 4 June 2007 to 30 May 2008. †Yield is gross of tax, net of charges, may vary, is not guaranteed
and is based on the current portfolio. The simplified prospectus and full prospectus for this fund are available from New Star on request. Issued by New Star Investment Funds Limited. Authorised and regulated by the Financial Services Authority.
The fund’s regional exposure –
direct property element §
Netherlands
4.6%
Czech Republic
5.4%
Germany
9.1%
Poland
3.4%
Singapore
23.9% Australia
24.5%
§Data at 29 August 2008.
Japan
29.1%
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