New Star Investment Trust managed to generate a return on its NA|V of 3.1%, well behind the MSCI UK Index which returned 10.2% and lagging the return on the IMA Mixed Investment (40%-85% equities) +6.6% and the MSCI World +6.3%.
The Chairman ascribes the underperformance to the company’s defensive positioning (high levels of cash) and its exposures to natural resources and emerging markets. The Board has no plans to address the company’s wide discount.