New Star set to branch out into high-yield bonds

New Star Asset Management is planning to launch European high-yield bond and emerging market debt funds. A decision will be made on whether to add the two funds to its Dublin Oeic range by the end of July.

The asset manager has spoken to its major clients about launching the two bond funds. Revised proposals for the funds will be presented to clients over the next few weeks.

If New Star decides to launch the two funds, it will not require the recruitment of any fund managers. Rob Page, marketing director of New Star, said: “We have the capability in-house to manage the funds. We have Theo Zemek, James Gledhill and Philip Roantree, who are all excellent managers, as well as some good analysts.

“We have a good track record with our UK High Yield Bond fund so it would be easy for the team to manage European high-yield as well. The issue for us is not just whether we would raise sufficient assets at launch but whether the interest would also be sustained after the launch,” says Page (pictured).

The UK High Yield Bond fund is managed by James Gledhill and, according to Trustnet, has returned 13.1% over the past year compared with the sector average of 11.8%.

There are currently seven funds in the New Star International Dublin Oeic range – Asian Opportunities, European Growth, Global Emerging Markets, Japan Recovery, UK Dynamic, US Opportunities and Strategic Government Bond. All the funds have sterling, as well as euro and dollar, share classes. Zemek manages the Strategic Government Bond fund along with Simon Ward.