New Star is launching a Higher Income Fund for the Isa season on offer from the 4 February 2002. ...
New Star is launching a Higher Income Fund for the Isa season on offer from the 4 February 2002.
Toby Thompson, who joined the company from Newton, will manage the fund. The New Star Higher Income Fund aims to provide investors with an increasing income stream and long-term capital appreciation.
A discount of 1% on the initial charge of 5.25% will apply during the three-week offer period between the 4 February and the 22 February. The same discount will apply for Isa and Pep transfers between 4 February to 5 April.
With a minimum investment of £1,000 and regular monthly lump sum of £100, the fund offers an initial commission rate of 3% and 0.5% renewal rate to intermediaries.
The fund will take a disciplined contrarian approach that uses relative yield as a sentiment indicator. This means that stocks will be bought when they yield 120% or more on the FTSE All Share Index. By selling the shares when their yields return to average, the fund should always yield more than average.
The portfolio will comprise of 55 to 75 stocks and the fund will invest principally in UK ordinary shares but may also invest in fixed interest securities, preference shares and convertible debt securities. Dividends will be paid bi-annually and the estimated gross yield is 4% per annum.
For more information contact New Star on 020 7225 9200
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