21st Sep 2018 10:08
LONDON (Alliance News) - New Star Investment Trust PLC said Friday it outperformed its benchmark in the twelve months ended June, leading to an increased final dividend.
For the year ended June, New Star's net asset value per share was 156.80 pence, increased 6.0% from 147.92p the year before.
New Star's net assets at the end of the year increased 6.0% to GBP111.4 million from GBP105.1 million.
The trust had a total return of 6.5% for the year. Outperforming the Investment Association's Mixed Investment 40-85% Shares Index, which gained 4.9% in the year.
Equity markets generated positive returns but performance in the UK was "weaker" than overseas performance. New Star attributed this to "concerns" about the outcome of Brexit.
The MSCI AC World Total Return and MSCI UK Total Return Indices gained 9.5% and 8.3%, respectively.
New Star's best performer was Polar Capital Technology, which rose 31% in the period. The tech investment company's "significant" US holdings, particularly Google and Microsoft, were also primary drivers of its rise.
Fundsmith Equity's 15% gain and Man GLG UK's 13% rise also contributed to New Star's performance.
The asset manager proposed a 1.00p dividend for the year, up 25% from the 0.80p paid year before.
Looking ahead, New Star raised concerns over the "uncertainty" surrounding the outcome of "trade skirmishes" between the US and China.
The fund believes it will play a "significant role" in determining investor sentiment over the coming months.
New Star said: "A swift resolution to the dispute, most likely coming from Beijing agreeing to reduce its trade surplus and ease restriction on US companies operating in China, could result in a buying opportunity for some riskier asset classes."
Shares in New Star Investment were untraded Friday but last closed at 107.00 pence each.
Related Shares:
New Star Inv