New Star is set to merge its £28.2m Tri-Star unit trust into Craig Heron's £47.6m Cautious Portfolio fund.
New Star said the merger is planned for Friday 8 August, subject to FSA and investor approval. It follows a drop in Tri-Star’s three major asset classes - equities, bonds and property - plus a shift in the Cautious Portfolio’s investment strategy. Since fund launch in July 2006, Tri-Star has struggled to meet its return expectations and New Star believes a merger will benefit investors. “Funds that are constrained by style will suffer when market cycles move against them, and there has been no harsher lesson than the recent credit crisis,” said Mark Skinner, managing director at New Star....
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