THE NEW STAR
INTERNATIONAL PROPERTY FUND.
DIVERSIFY INTO INTERNATIONAL COMMERCIAL PROPERTY.
The importance of holding a well-balanced portfolio should not be underestimated, particularly at times of stockmarket volatility.
The New Star International Property Fund is designed for long-term investors seeking to add the diversification benefits of
international direct commercial property to their existing equity, bond and property portfolios.
INTERNATIONAL DIVERSIFICATION
The fund aims to invest 75-80% of its assets in physical commercial property
with the balance in property shares, real estate investment trusts (REITs)
and cash for liquidity. The structure is designed to deliver greater potential
diversification than funds that invest primarily in property shares or REITs.
This is because changes in stockmarket sentiment have a greater influence
on the returns from property shares and REITs than they do on the returns
from physical properties. The 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. Investors should note that international investments carry
currency risks.
INTERNATIONAL PORTFOLIO
Launched in June 2007 the fund aims to invest in prime properties in
good locations, let to high quality tenants on strong leases, with good
prospects for rental growth. Having attracted more than £680 million † of
investments the fund has acquired properties in cities that include
The New Star International Property Fund is available through the following international distribution partners:
*Yield is at 30.06.08 gross of tax, net of charges, may vary, is not guaranteed and is based on the current portfolio. The value of investments and any income from them
may fall as well as rise as a result of market and exchange rate movements and investors may not get back the amount invested. Currency risk is mitigated by appropriate
currency hedging for the direct property element of the fund. Whilst the manager seeks 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. The annual management charge for the fund is taken from capital. Capital
growth, therefore, will be restricted. Please note, the bid-offer spread for this fund is likely to be wider than on less specialist funds and may vary. The bid-offer spread
represents the difference between the buying and selling prices for the underlying assets in the fund. 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. 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. Also, while property
valuations are conducted by an independent expert, any such valuation is a matter of the valuer’s opinion. 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.
†At 30.06.08. A copy of the fund’s prospectus or simplified prospectus is available from New Star on request. Issued by New Star Investment Funds Limited. Authorised and
regulated by the Financial Services Authority.
Amsterdam, Berlin, Hiroshima, Melbourne, Munich, Osaka, Perth, Singapore,
Sydney and Tokyo.
ATTRACTIVE INCOME STREAM
The appeal of investing in commercial property stems largely from the quality
of the income stream paid by the underlying tenants. Unlike the income from
bonds, which is generally fixed, rental income from commercial property can
rise, providing a measure of protection against inflation. Based on its current
portfolio, the New Star International Property Fund has an estimated gross
income yield of 4.1%*. This yield may vary and is not guaranteed.
STAR TEAM
The New Star International Property Fund is managed by Stuart Webster, head
of global property at New Star. Stuart joined New Star for the retail launch of
the fund in June 2007, bringing with him 23 years’ experience of international
property markets. Stuart is assisted at New Star by a highly experienced and
well respected team of property specialists. They in turn work with an external
network of established international advisers including CBRE and DTZ.
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