New Star has announced a launch date of 12 June for its Tri-Star fund, a portfolio that invests equally in three different asset classes.
Managed by Gregor Logan, the group's joint deputy chief investment officer, the portfolio will look to provide a high level of income and capital growth by investing in a mixture of UK equities, bonds and commercial property.
Logan has overall responsibility for the funds asset allocation weightings, but stock selection for each component asset class will fall to different managers at New Star: Stephen Whittaker, manager of New Star UK Growth, will manage the UK equity component, while James Gledhill, who runs the High Yield and Extra High Yield funds, will be responsible for the bond portion. The vehicle's exposure to commercial property will come through the New Star Property unit trust, headed by Roger Dossett.
Launched in response to strong demand for commercial property within balanced portfolios, the fund will have a maximum of 35% in the property sector, with investment in bonds and UK equities varying between 20% and 50%. The fund targets a net income yield of 4%.
Minimum investment in the vehicle is set at £1,000 or monthly instalments of £100. The initial charge is 5% with an AMC of 1.35%. The fund has a 1% discount on lump sum investments up until launch.
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An added tier of asset management can of course deliver additional benefits for certain investors, writes Graham Bentley - just be sure you can justify it to the regulator and, especially, the client