New Star is to go ahead with its plans for a distribution fund, headed up by bond manager Theo Zem...
New Star is to go ahead with its plans for a distribution fund, headed up by bond manager Theo Zemek, due for launch the first week of February.
The equity income element of the fund, which will have a target yield of 5%, is to be managed by Toby Thompson.
The group is still working on plans for an investment grade corporate bond fund to be managed by Zemek. However, the launch date has been moved back from January until later in the year, closer to the end of the Isa season.
Leading up to the launch of the distribution fund, New Star will embark on a series of roadshows around the country, to be chaired by its founder John Duffield. The seminars will begin on the 21 January and will run straight into the launch period.
While Thompson will be working on the planned distribution fund alongside Zemek, she will be the lead manager and make all portfolio asset allocation decisions, including the types of instruments held.
The group is not planning to take advantage of the new Ucits rules on mixed funds for the product as it will be a sub-fund of the group's existing Oeic.
The adoption of the Ucits 3 rules into UK law means if one sub-fund adheres to Ucits 3, all sub-funds must.
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