New Star's Heart of Africa fund has raised £34m over the course of its three-week launch period ending on 9 November.
The fund, run by Jamie Allsopp, is aimed at sophisticated investors and invests in the sub-Saharan region excluding South Africa.
New Star highlights strong economic growth, a reducing debt burden, high levels of foreign direct investment, increasing levels of political stability, strong demand for resources and a low level of correlation with other world markets as attractions of the region.
Mark Skinner, managing director, New Star Asset Management, says: “To raise £34m at launch has exceeded our expectations. This sum raised so far has allowed Jamie to commit to a high conviction portfolio of stocks that is well diversified across the region and across a number of high-growth sectors.
“New Star will be capping the size of its Heart of Africa investment strategy at £100m. Whilst the fund still has additional capacity we expect to see continued strong demand for this product.”
Allsopp, who also runs New Star’s Hidden Values fund, is in the process of investing the money raised during the launch period.
The minimum investment in the fund is £12,500, with a minimum top-up amount of £5,000. There is an initial charge of 5.25% and the annual management charge is 1.75%.
New Star will levy a performance fee of 20% of any outperformance achieved over its target of three-month sterling LIBOR plus 3%. The charge will be levied quarterly subject to achieving its performance target and reaching a high watermark.
The fund is high risk and therefore only suitable for investors who are able to bear the loss of all or part of their capital investment, New Star says. Investors should contact their financial adviser to discuss the suitability of an investment in this fund.
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