New Star to launch triple-asset trust

New Star is to launch a unit trust investing in UK equities, bonds and UK commercial property. The New Star Tri-Star fund, to be structured as a non-Ucits retail scheme, will invest about one third of its assets in each of the three asset classes.

Gregor Logan, a joint deputy chief investment officer at New Star, will be lead manager of the fund, taking responsibility for its asset allocation. While Logan will determine the proportion the fund invests in the three asset classes, stock selection in the three components will be made by three of the group’s fund managers.

The selection of UK equities in the fund will be made by Stephen Whittaker, manager of the 384m New Star UK Growth fund. James Gledhill, manager of the 296m New Star High Yield Bond fund, will select the bonds, while Roger Dosset, joint manager of the 935m New Star Property fund, will select the commercial property.

The equities and bond selection will be a collection of Whittaker’s and Gledhill’s best ideas and commercial property exposure is via direct investment into units of the New Star Property unit trust.

The target is to be equally invested in the three asset classes but Logan can operate within a 5% margin, so the fund is described as “actively managed”. In exceptional circumstances he can move up to 50% and down to 20% in each of equities, bonds or commercial property.

The fund will target a net income yield of 4%, with the income being paid to investors twice a year, on August 1 and February 1.

The offer period will be between June 12 and noon on June 30, over which time there will be a 1% discount on all lump investments.

During the offer period the fund will have a fixed price of 50p and the first trading day will be July 3.

The normal initial charge will be 5%, with a 1.35% annual management fee, and it is eligible for Isa and investment and Isa/ Pep transfers. Lump sum minimum investment is 1,000, or 100 a month.