AUSTRALIA ★ CZECH REPUBLIC ★ GERMANY ★ JAPAN ★ NETHERLANDS ★ POLAND ★ SINGAPORE
INTERNATIONAL
PROPERTY.
THE LONG TERM BENEFITS STAND OUT.
THE NEW STAR INTERNATIONAL PROPERTY FUND.
4 . 0%
Estimated gross income
yield at 30.09.08,
may vary and is not
The continuing turmoil in the world’s financial markets highlights the importance of holding a well-diversified
investment portfolio and of adopting a long-term view.
Commercial property, in the form of bricks and mortar, can add valuable diversification to portfolios because
its returns are generally only weakly correlated to the returns from equities and bonds. International
commercial property offers the potential for further diversification by accessing the property markets of
countries at different stages of their economic cycles.
Poland
Netherlands 3.5%
4.4%
guaranteed.† Although no-one knows how severe the wider economic fall-out from the current woes of the financial markets
Czech Republic
Japan
will be, we believe that tangible assets such as commercial property with the potential to deliver regular,
5.4%
31.0%
relatively secure streams of income with comparatively low volatility have a significant role to play within a well-balanced portfolio.
Germany
8.9%
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. 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. For example the fund has recently exchanged
contracts to acquire an office building in Paris. 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:
Please note past performance is not necessarily a guide to future performance. 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.
† 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 §
Australia
23.1%
§Data at 30 September 2008
Singapore
23.7%
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