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
guaranteed.†
The continuing turmoil in the world’s financial markets highlights the importance of holding a well-diversified investment portfolio and of adopting a longterm
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.
Although no-one knows how severe the wider economic fall-out from the current woes of the financial markets will be, we believe that tangible assets such
as commercial property with the potential to deliver regular, relatively secure streams of income with comparatively low volatility have a significant role to play within a wellbalanced
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. 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.
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.
For further information on the New Star International Property Fund please call us on the number below or visit our website.
0845 608 8701
www.newstaram.com
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. New Star Investment Funds is the trading name of New Star Investment Funds Limited, part of the New Star Marketing
Group. New Star Investment Funds is not authorised to give investment advice and only provides information on New Star’s products. The simplified prospectus and full prospectus for this fund are available from
New Star on request. The telephone line stated above is open from 8am to 6pm, Mon-Fri. For your protection, calls are recorded and may be monitored. Issued by New Star Investment Funds Limited. Authorised and
regulated by the Financial Services Authority.
The fund’s regional exposure –
direct property element §
Poland
Netherlands 3.5%
4.4%
Czech Republic
5.4%
Germany
8.9%
Australia
23.1%
§Data at 30 September 2008
Japan
31.0%
Singapore
23.7%
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