12th Feb 2016 14:45
LONDON (Alliance News) - New Star Investment Trust PLC on Friday said it generated a total return of 2.5% over the six months to December 31, taking the net asset value per ordinary share to 114.96 pence. By comparison, the Investment Association?s Mixed Investment 40-85% Shares Index fell 0.48%.
The MSCI AC World Total Return Index gained 1.72% while the MSCI UK Total Return Index fell 3.27%. Over the same period, UK government bonds returned 1.88%.
"Global equities fell in January 2016 in response to renewed renminbi weakness as China moved to loosen its currency?s ties to the dollar, which had strengthened in response to the turn upwards in the US interest rate cycle. Investors have been concerned that a weaker renminbi would generate deflation, and by recent weakness in the oil price," Chairman Geoffrey Howard-Spink said.
"The stronger dollar has, however, tightened US monetary conditions and this may cause the Federal Reserve to slow down its planned programme of interest rate rises during 2016. A more dovish stance from the Fed should reduce pressure on China to weaken the renminbi further and should be positive for equities, particularly global consumer stocks that benefit from increased consumer spending resulting from lower oil prices," the chairman added.
Shares in the trust were down 4.3% at 67.00p on Friday.
By Samuel Agini; [email protected]; @samuelagini
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