New Star International Property

The fund was launched in May 2007, fantastic timing for those that wished to take advantage of the clear global opportunities, and also take some handsome profits on their UK funds.

Inflows to the fund continue to be strong. Obviously, it takes time to buy individual properties, so the fund is currently only 50% invested in bricks and mortar, with the balance ready to be invested into Continental Europe, where the manager believes that good value will emerge in 2008.

Short of a global recession, this fund should provide steady returns for years to come.

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NEW STAR INTERNATIONAL PROPERTY
INITIAL CHARGE	DISCOUNT	REDUCED INITIAL CHARGE
5.00%	4.52%	0.48%

OUR VIEW:

New Star built a strong team to enable them to launch this fund in May 2007, and the fund has attracted strong inflows (now £615m), and it continues to be the only one of its kind available to UK investors. As the fund avoided UK and US markets it performed very well relative to other bricks and mortar funds since launch. It currently has 50% in bricks and mortar with 85% committed to Asia, where the growth prospects are somewhat better than Europe, and they are still finding decent value.

RISK AND YOUR PORTFOLIO:

If the total exposure in your portfolio to property was 20%, or towards 30% for less aggressive portfolios, this fund could account for half of that exposure. A lower risk fund, though do note that in extreme market conditions (much as encountered in the UK in 2007) they can restrict your ability to encash.

ABOUT THE FUND:

To achieve long-term capital growth and income investing principally in commercial property and property related securities.

FUND FACTS:
LAUNCHED	FUND SIZE	ANNUAL CHARGE	FUND MANAGERS
14/05/2007	£678.4 million	1.75%	Roger Dossett & Stuart Webster

FUND PERFORMANCE: To 31st August
0-12m	12-24m	24-36m	36-48m	48-60m
+3.66%	- - -	- - -	- - -	- - -

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